Restaurant Insurance Authority

Restaurant Insurance in Virginia

The policies a Virginia 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 Virginia, 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 Virginia'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, but advised for other claims)

Workers’ compensation in Virginia

Yes. Virginia requires workers' compensation insurance once a business regularly employs more than two employees—three or more—including part-time, seasonal, and temporary workers. Subcontractors' employees count toward the total, and there are no waivers or exemption forms, even for sole proprietors. For those required to carry it, coverage is mandatory with no exceptions.

Full Virginia workers’ comp guide — thresholds, exemptions, and rates →

Liquor liability & dram-shop law in Virginia

Virginia is one of the few states with no dram-shop liability. Its Supreme Court held in Williamson v. The Old Brogue (1986) that neither statute nor common law makes an alcohol seller civilly liable when an intoxicated patron injures someone, leaving any change to the legislature. Sellers can still face lawsuits and defense costs, so liquor liability insurance is still commonly required.

Full Virginia liquor-liability guide — the statute, limits, and cost →

Coverages every Virginia restaurant should weigh

Virginia 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.