Restaurant Insurance for Myrtle Beach Businesses

What Is Restaurant Insurance?

Restaurant insurance combines multiple coverages into a package designed specifically for food service operations. Rather than piecing together separate policies, restaurant insurance bundles property protection, liability coverage, equipment breakdown, food spoilage, and other essential coverages into a comprehensive program that addresses the unique risks restaurants face daily.

For Myrtle Beach restaurant owners, this specialized coverage is essential. The Grand Strand's hospitality industry demands high standards, and a single food safety incident, kitchen fire, or serious customer injury could close your doors permanently. Restaurant insurance provides the financial protection that lets you focus on running your business rather than worrying about catastrophic losses.

Why Myrtle Beach Restaurants Need Specialized Insurance

Restaurants combine high-risk elements that most businesses don't face: open flames, hot cooking equipment, sharp tools, wet floors, heavy customer traffic, perishable inventory, and often alcohol service. Restaurant insurance addresses all these exposures:

• Food safety creates liability exposure. A single foodborne illness outbreak can generate dozens of claims, regulatory scrutiny, and devastating publicity. Restaurant insurance includes coverage for food contamination claims and their aftermath.


• Kitchen equipment is expensive and essential. Commercial ovens, refrigeration units, fryers, and ventilation systems cost tens of thousands to replace. When they break down, you can't serve customers. Equipment breakdown coverage addresses both scenarios.


• Customer traffic means injury risk. Busy dining rooms, wet floors near restrooms, outdoor patios, and parking lots all create premises liability exposure. Slip-and-fall claims are among the most common restaurant liability issues.


• Liquor service adds complexity. If you serve alcohol, you face liquor liability exposure when intoxicated patrons cause harm to themselves or others. Standard liability policies don't cover this—you need specific liquor liability coverage.


• Coastal weather threatens operations. Hurricanes, tropical storms, and severe weather can damage your building, destroy inventory, and force extended closures. Restaurant insurance protects against these regional risks.

What Does Restaurant Insurance Cover?

A comprehensive restaurant insurance program includes multiple coverage components:

Commercial Property Coverage

Protects your building (if owned), kitchen equipment, furniture, fixtures, signage, and inventory from fire, theft, vandalism, and other covered perils. For Myrtle Beach restaurants, property coverage should address wind and storm damage common to coastal locations.

General Liability Insurance

Covers third-party claims for bodily injury and property damage. When a customer slips on a wet floor, gets burned by hot food, or is injured by a falling fixture, general liability pays medical expenses and legal defense. This coverage also addresses advertising injury claims and damage to rented premises.

Liquor Liability Insurance

Essential for any restaurant serving alcohol. Liquor liability coverage protects against claims arising from intoxicated patrons—DUI accidents, fights, injuries from overservice. South Carolina's dram shop laws can hold establishments liable when alcohol service contributes to harm.

Equipment Breakdown Coverage

Standard property policies cover damage from external causes but exclude mechanical and electrical breakdown. Equipment breakdown coverage pays to repair or replace kitchen equipment that fails due to internal malfunction—refrigeration compressors, HVAC systems, electrical panels, and cooking equipment.

Food Spoilage Coverage

When refrigeration fails or power outages occur, perishable inventory spoils. Food spoilage coverage reimburses the cost of lost inventory due to temperature change from equipment breakdown or power failure. For restaurants with significant refrigerated stock, this coverage prevents major financial losses.

Business Income Coverage

When covered property damage forces your restaurant to close for repairs, business income coverage replaces lost revenue. Kitchen fires, storm damage, and other events that shut down operations can take weeks or months to repair. Business income protection keeps money flowing during that period.

Food Contamination Coverage

Goes beyond standard liability to address the full scope of contamination events. This coverage can include product recall expenses, business interruption from health department closures, decontamination costs, and crisis management expenses. A contamination event's true cost extends far beyond medical claims.

Additional Coverages for Myrtle Beach Restaurants

Depending on your operations, you may need these additional protections:

Workers compensation insurance. Required in South Carolina for restaurants with four or more employees. Kitchen work involves burns, cuts, slips, and repetitive motion injuries. Workers comp covers medical expenses and lost wages for injured employees.

Employment practices liability. Protects against claims of discrimination, wrongful termination, harassment, and other employment-related allegations. Restaurants with significant staff face real EPLI exposure.

Commercial auto insurance. If your restaurant owns delivery vehicles, commercial auto coverage is required. For delivery using employee personal vehicles, hired and non-owned auto coverage addresses that liability gap.

Cyber liability coverage. Point-of-sale systems process credit cards, creating data breach exposure. Cyber coverage pays for notification costs, credit monitoring, and liability when customer payment information is compromised.

Umbrella insurance. Provides additional liability limits above your general liability, auto, and employers liability policies. For busy Myrtle Beach restaurants, a commercial umbrella adds crucial protection against catastrophic claims.

Restaurant Insurance for Different Operations

Coverage needs vary based on your restaurant type:

Full-service restaurants. Higher liability exposure from table service, alcohol consumption on premises, and extended customer dwell time. Liquor liability and higher general liability limits are typically needed.

Fast casual and quick service. Higher transaction volume means more customer interactions and more slip-and-fall exposure. Equipment breakdown coverage is critical given reliance on cooking equipment for speed.

Bars and nightclubs. Liquor liability becomes the primary concern. Assault and battery coverage addresses fights and altercations. Higher liability limits are essential.

Food trucks and mobile operations. Commercial auto coverage for the vehicle itself, plus general liability for wherever you operate. Equipment breakdown coverage for onboard cooking equipment.

Catering operations. Off-premises liability coverage for events at client locations. Hired and non-owned auto for delivery vehicles. Product liability for food served away from your kitchen.

How Much Does Restaurant Insurance Cost in South Carolina?

Restaurant insurance premiums depend on multiple factors:

• Annual sales. Higher revenue generally means higher premiums since it indicates more customer traffic and exposure.


• Square footage. Larger restaurants have more premises liability exposure and more property to insure.


• Alcohol sales percentage. Restaurants deriving significant revenue from alcohol pay more for liquor liability coverage.


• Location. A Myrtle Beach tourist-area restaurant may see different rates than a Conway neighborhood spot due to traffic patterns and property values.


• Claims history. Prior losses—particularly liability claims—significantly impact renewal pricing.


• Building age and condition. Older buildings with outdated electrical or plumbing systems cost more to insure.

A small Myrtle Beach restaurant might pay $5,000 to $12,000 annually for comprehensive restaurant insurance. Larger operations, those with significant alcohol sales, or restaurants with adverse claims history pay considerably more.

Why Work with Moore & Associates for Restaurant Insurance

Moore & Associates has served Myrtle Beach businesses since 1979. As an independent insurance agency, we work with multiple carriers that specialize in restaurant coverage. This lets us compare options, find competitive pricing, and structure programs that actually fit your operation.

Our local agents understand the Myrtle Beach restaurant industry—seasonal fluctuations, tourism-driven traffic, coastal weather exposure, and the competitive pressures facing Grand Strand food service businesses. We help restaurants from North Myrtle Beach to Murrells Inlet build coverage programs that protect their operations.

Get a Restaurant Insurance Quote in Myrtle Beach, South Carolina

Our restaurant insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.