Restaurant Insurance in Michigan
The policies a Michigan 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 Michigan, 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 liquor-liability insurance is effectively required for any business serving alcohol. This hub compares Michigan'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
- Effectively required to serve alcohol
- Dram-shop law
- Yes
- Suggested liquor limits
- $1M/$2M (far above the $50K statutory floor)
Workers’ compensation in Michigan
Yes, in most cases. Michigan requires workers' compensation for any private employer regularly employing three or more workers at one time, or employing one or more workers 35+ hours per week for 13 weeks or longer during the preceding 52 weeks. Nearly every restaurant meets one trigger, so coverage is effectively mandatory.
Full Michigan workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Michigan
Michigan makes a licensee liable for serving a minor or a visibly intoxicated person who then causes injury — but the plaintiff must “name and retain” the intoxicated person as a defendant. Michigan also requires every retail licensee to carry at least $50,000 of financial responsibility (usually liquor-liability insurance) before licensing.
Full Michigan liquor-liability guide — the statute, limits, and cost →
Coverages every Michigan 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.
Michigan 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.