Underwriting Guide
What Underwriters Ask About Restaurants
Restaurants are one of the most complex commercial accounts for their size — food liability, liquor exposure, kitchen fire risk, and high employee turnover all combine to create significant underwriting scrutiny. Underwriters evaluate the type of establishment, food preparation methods, alcohol sales percentage, and loss history carefully before quoting.
General LiabilityLiquor LiabilityCommercial PropertyWorkers' CompensationBusiness IncomeCommercial Umbrella
General Business Questions
What type of restaurant — fast food, casual dining, fine dining, bar, food truck, catering?
Why they ask: The establishment type determines risk class. Bars have higher liquor exposure; food trucks have different property needs; catering has off-premise food liability.
What is the annual gross revenue — split between food and alcohol?
Why they ask: Liquor liability premium is based on alcohol revenue as a percentage of total revenue. Over 50% alcohol sales significantly changes the risk profile.
What are the hours of operation?
Why they ask: Late-night operations correlate with higher assault and battery claims. Carriers may restrict coverage or add endorsements for establishments open past 2am.
What is the seating capacity?
Why they ask: Premises liability exposure scales with occupancy. Higher capacity means more foot traffic and higher injury risk.
Food & Liquor Operations
Does the restaurant serve alcohol? If so, what percentage of revenue is from alcohol?
Why they ask: Liquor liability is a separate coverage with its own premium basis. Restaurants with high alcohol revenue need higher liquor liability limits.
Does the restaurant hold a liquor license? What type?
Why they ask: License type (beer/wine only vs. full liquor) affects risk class and some carrier eligibility rules.
Is food prepared on-site with deep fryers or commercial cooking equipment?
Why they ask: Deep fryers and commercial ranges are the leading cause of restaurant fires. Carriers want to know about fire suppression systems and hood cleaning frequency.
How often is the kitchen hood and suppression system cleaned?
Why they ask: Hood cleaning reduces fire risk. Quarterly cleaning is typically required for full-service kitchens; failure to maintain systems can void property coverage.
Does the restaurant deliver food or use third-party delivery services?
Why they ask: Restaurant-operated delivery creates auto liability. Third-party platforms (DoorDash, Uber Eats) shift some risk but not all.
Property & Equipment
Does the restaurant own or lease the building?
Why they ask: Owned buildings need building coverage; leased spaces need tenant improvement and betterment coverage plus a copy of the lease for additional insured requirements.
What is the value of kitchen equipment, furniture, and inventory?
Why they ask: Commercial kitchen equipment is expensive and often underinsured. Equipment breakdown coverage should also be considered.
Is there a fire suppression system (sprinklers) in the building?
Why they ask: Sprinklers reduce property premium significantly. Their presence or absence is a key underwriting factor.
Employees & Loss History
How many full-time and part-time employees?
Why they ask: WC premium is calculated on payroll. High turnover in restaurant staff increases injury frequency.
Provide 5 years of loss runs for GL, property, and WC.
Why they ask: Restaurants with prior food poisoning claims, slip-and-fall claims, or fire losses require detailed review and explanation.
Have there been any food safety violations, health department citations, or temporary closures?
Why they ask: Regulatory violations suggest operational problems that correlate with future claims. Some carriers require disclosure.
Answers that raise red flags
⚠Alcohol revenue above 60% of total revenue without a liquor liability policy in place
⚠Prior food poisoning or contamination claims
⚠Fire claims related to cooking equipment — especially if hood cleaning was delinquent
⚠Open health department violations or recent temporary closure by the health department
⚠Hours past 2am, especially with live entertainment
⚠No fire suppression system in the kitchen
Tips for presenting this risk favorably
✓Separate food and alcohol revenue clearly — carriers price liquor liability on this split
✓Document hood cleaning frequency and fire suppression inspection dates
✓Highlight any food handler certifications, ServSafe training, or health inspection scores
✓Explain any prior claims with a brief narrative — a single large claim explained is better than one that looks unexplained
✓Confirm whether the building has sprinklers — this single factor can significantly reduce property premium
Collect all this information automatically
AgencyAssist sends your client a plain-English intake link and maps every answer to the correct ACORD fields — including all the questions above.