Restaurant Insurance in Texas
The policies a Texas 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 Texas, 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 not strictly state-mandated, and dram-shop law exposes any alcohol-serving business, so liquor liability is strongly advised. This hub compares Texas's workers' comp and liquor-liability rules and cost alongside the coverages every restaurant and bar should carry.
- Workers’ comp
- Not strictly state-mandated
- Liquor liability
- Dram-shop law applies — strongly advised
- Dram-shop law
- Yes
- Suggested liquor limits
- $1M/$2M
Workers’ compensation in Texas
No. Texas is the only state where private employers, including restaurants, may legally decline workers' compensation coverage and operate as non-subscribers. However, non-subscribers must file annual notices with the Division of Workers' Compensation, post employee notices, report injuries, and forfeit common-law defenses—exposing them to direct negligence lawsuits with no damage caps.
Full Texas workers’ comp guide — thresholds, exemptions, and rates →
Liquor liability & dram-shop law in Texas
Texas holds a business liable only when it served someone who was “obviously intoxicated to the extent he presented a clear danger” — a higher bar than simple visible intoxication. Serving minors also triggers liability. Insurance isn’t required by law, but a state-approved seller-training program gives employers a real legal defense.
Full Texas liquor-liability guide — the statute, limits, and cost →
Coverages every Texas 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.
Texas 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.