Restaurant Insurance in Maryland
The policies a Maryland 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 Maryland, 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 the state has no dram-shop statute, though liquor liability still protects venues serving alcohol. This hub compares Maryland'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
- No dram-shop statute — still advised
- Dram-shop law
- No
- Suggested liquor limits
- $1M/$2M (lower priority given no dram-shop liability, still advised for premises and assault claims)
Workers’ compensation in Maryland
Yes. Maryland requires nearly every employer with one or more employees—full- or part-time—to carry workers' compensation insurance, one of the strictest thresholds nationwide. A restaurant needs coverage from its first hire. Sole proprietors, partners, qualifying LLC members, and corporate officers may formally opt out for themselves, but their employees must still be covered.
Full Maryland workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Maryland
Maryland does not recognize dram shop liability. In Warr v. JMGM Group, LLC (2013), the state’s highest court reaffirmed that a tavern owes no duty to third parties harmed off-premises by an intoxicated patron, absent a special relationship. A bar cannot be sued merely for over-serving. Insurance still matters, because businesses face lawsuits, defense costs, and assault-and-battery exposure.
Full Maryland liquor-liability guide — the statute, limits, and cost →
Coverages every Maryland 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.
Maryland 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.