Restaurant Insurance in Massachusetts
The policies a Massachusetts restaurant, bar, food truck, or catering operation needs — what the state requires, what's strongly advised, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
In Massachusetts, a restaurant's core program is general liability, a property or business-owner's policy (BOP), and commercial auto for any delivery. Workers' compensation is mandatory once you hire staff, and dram-shop law exposes any alcohol-serving business, so liquor liability is strongly advised. This hub compares Massachusetts's workers' comp and liquor-liability rules and cost alongside the coverages every restaurant and bar should carry.
- Workers’ comp
- Required once you hire staff
- Liquor liability
- Dram-shop law applies — strongly advised
- Dram-shop law
- Yes
- Suggested liquor limits
- $1M/$2M (bars often $2M/$4M)
Workers’ compensation in Massachusetts
Yes. Massachusetts requires all employers to carry workers' compensation for their employees, regardless of hours worked or number of employees, so a restaurant needs coverage from its first hire. Sole proprietors, partners, and LLC members may exclude themselves, and corporate officers owning at least twenty-five percent may request exemption, but employees must always be covered.
Full Massachusetts workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Massachusetts
Massachusetts dram-shop liability is mostly common-law (Adamian v. Three Sons, 1968), built on the statutory ban in M.G.L. c. 138 § 69 against serving an intoxicated person. A bar or restaurant is generally liable only if a patron was visibly intoxicated when served. Insurance isn’t required by statute, but landlords and towns expect it.
Full Massachusetts liquor-liability guide — the statute, limits, and cost →
Coverages every Massachusetts restaurant should weigh
- General liability
Third-party slip-and-fall and property-damage claims — the foundation policy.
- Business owner’s policy (BOP)
Bundles general liability with property coverage for your building, equipment, and contents.
- Commercial property
Kitchen equipment, tenant improvements, signage, and inventory.
- Commercial & hired/non-owned auto
Delivery, catering runs, and errands in owned or employee vehicles.
- Employment practices (EPLI)
Harassment, discrimination, and wrongful-termination claims from staff.
- Umbrella
Extra limits above your liquor, auto, and general liability policies.
Massachusetts regulators
Talk to an agent who insures food & beverage every day
A licensed commercial-lines agent who specializes in restaurants and bars will review your coverage, close the gaps that catch owners, and show you what a program actually costs — before anything is bound.