Opening a restaurant in Florida? You're probably drowning in permit applications, menu decisions, and lease negotiations. But here's something that deserves your immediate attention: your insurance requirements. Get this wrong, and you could face state fines, lose your lease, or worse—be personally liable when something goes wrong. The good news? Florida's requirements are straightforward once you understand them.
Let's break down exactly what insurance coverage you need to operate legally in Florida, what your landlord will demand, and how to avoid the expensive mistakes most new restaurant owners make.
Workers' Compensation: Florida's Four-Employee Rule
This is the big one. Florida law requires workers' compensation insurance for any restaurant with four or more employees. Notice that word: employees. It includes everyone—your chef, servers, dishwashers, bartenders, and even part-time staff. If you have four people on payroll, you need coverage. No exceptions.
Here's what surprises most owners: sole proprietors and partners don't count as employees under Florida law. But you can voluntarily include yourself on the policy by filing form DWC-251. Should you? If you're working the line during dinner rush or handling deliveries, absolutely. One kitchen burn or slip on a wet floor, and you'll be grateful for that coverage.
The consequences of skipping workers' comp are severe. Florida can issue stop-work orders that literally shut down your restaurant until you get coverage. You'll also face financial penalties that can cripple a new business. And if an employee gets hurt? You're personally liable for their medical bills and lost wages—potentially hundreds of thousands of dollars.
Cost-wise, expect to pay $0.90 to $2.75 per $100 of payroll. The National Council on Compensation Insurance (NCCI) sets rates based on your industry classification code. Full-service restaurants typically fall under code 9082, while fast-food operations have different codes with different rates. Your actual premium depends on your total payroll and claims history.
Florida operates on a no-fault system, which actually protects you. When workplace accidents happen, employees receive benefits without proving you were negligent. In exchange, they typically can't sue you. It's a trade-off that keeps everyone out of court and your business running.
General Liability Insurance: Not Required by Law, But Required by Reality
Here's the frustrating truth: Florida doesn't legally require general liability insurance. Technically, you could operate without it. But you won't, because your landlord won't let you.
Most commercial leases in Florida require restaurants to carry general liability coverage of at least $1 million per occurrence and $2 million aggregate. In high-value areas like Miami's Design District or Naples waterfront, landlords often demand $2 million per occurrence and $4 million aggregate. They'll also require you to name them as an additional insured on your policy and provide annual certificates of insurance.
What does general liability cover? Third-party injuries and property damage. A customer slips on your wet floor and breaks their ankle? General liability. A server spills hot coffee on someone's laptop? General liability. Food poisoning from undercooked chicken? That's product liability, often included in your general liability policy or available as an add-on.
For most Florida restaurants, general liability insurance costs $800 to $2,800 annually. Factors that affect your rate include your square footage, seating capacity, whether you serve alcohol, and your location. A beachfront seafood restaurant with a full bar will pay more than a small lunch counter in a strip mall.
Many restaurant owners bundle general liability with property insurance in a Business Owner's Policy (BOP). This package typically costs around $2,160 per year for Florida restaurants and provides better value than buying policies separately. It covers your building improvements, equipment, furniture, and inventory alongside your liability exposures.
Licensing Requirements You Can't Ignore
Before you even think about insurance, you need the right licenses. Florida's Division of Hotels and Restaurants requires a Food Service License for every restaurant, food truck, catering operation, and even vending machine that serves prepared food. Each location needs a separate license—if you run a hotel with three restaurants, that's four licenses total.
Your employees need licenses too. Every person who prepares or serves food must obtain a Food Handler's license within 30 days of being hired. The good news? Florida law caps the cost at $15 per person, making it one of the more affordable states for food handler certification.
If you're serving alcohol, add another layer of requirements. You'll need an alcoholic beverage license from the state, which can be expensive and time-consuming to obtain. You'll also need liquor liability insurance—a separate policy that protects you when intoxicated customers cause harm to themselves or others. Your general liability policy typically won't cover alcohol-related incidents.
Don't forget your business basics: a sales tax permit, Federal Employer Identification Number (FEIN), and certificate of occupancy. Your local city or county may have additional business license requirements—regulations vary significantly across Florida municipalities, so check with your local jurisdiction.
Other Coverage You'll Need
Beyond workers' comp and general liability, consider these essential coverages:
Commercial Auto Insurance: If you offer delivery, Florida requires $10,000 in Personal Injury Protection and $10,000 in Property Damage Liability for each vehicle. But those minimums won't protect you adequately—consider higher limits and hired/non-owned auto coverage for employees using personal vehicles for deliveries.
Property Insurance: Your lease probably requires this too, covering the full replacement cost of your tenant improvements, equipment, and inventory. Expect to pay $1,700 to $11,000 annually depending on your restaurant's size and location.
Business Interruption Insurance: When Hurricane Ian forces you to close for two weeks, this coverage pays your ongoing expenses and lost income. In Florida's hurricane-prone climate, it's not optional—it's survival insurance.
Getting Started: Your Action Plan
Start by reading your commercial lease carefully. Note every insurance requirement and coverage limit your landlord specifies. Then count your employees—if you have four or more, workers' comp isn't optional.
Get quotes from multiple insurance agents who specialize in restaurant coverage. Ask about Business Owner's Policies that bundle general liability and property insurance—you'll usually save money compared to separate policies. Provide accurate payroll figures for your workers' comp quote; underestimating to save premium money will backfire during your annual audit.
Don't wait until the week before you open. Insurance underwriting takes time, especially for workers' compensation. Start the process at least 60 days before your planned opening date.
Running a restaurant in Florida is challenging enough without worrying about insurance compliance. Get your coverage right from the start, and you can focus on what really matters—creating amazing food and memorable experiences for your customers. Your insurance might feel like just another expense, but it's really the foundation that protects everything you're building.
