Restaurant Insurance in Texas: 2026 Cost Guide

How Much Does Restaurant Insurance Cost in Texas?

Restaurant insurance in Texas averages $147 per month for general liability coverage alone. A comprehensive insurance package — including general liability, commercial property, and workers' compensation — typically runs between $2,028–$3,387 per year for a typical full-service restaurant.

Here's what you can expect to pay for individual coverage types in Texas:

These figures are based on a typical full-service restaurant with 10-20 employees and $500,000–$1,500,000 in annual revenue. Your actual costs will depend on your specific location within Texas, claims history, employee count, and coverage limits.

Texas-Specific Insurance Requirements

Texas stands alone as the only state where workers' comp is optional for most private employers. Employers who opt out ('non-subscribers') must file annual notices with the Texas Department of Insurance and inform employees. Critically, non-subscribers lose three powerful legal defenses: contributory negligence, assumption of risk, and fellow servant doctrine—meaning an injured employee can sue for unlimited damages with a much easier path to winning. Despite this, approximately 20% of Texas employers choose not to carry workers' comp. Texas uses class code 9079 for all restaurant types.

Required Coverages in Texas

• General Liability

Recommended Additional Coverages

• Workers' Compensation (strongly recommended)
• Commercial Property
• Liquor Liability
• Hurricane/Wind Coverage (Gulf Coast)
• Business Interruption
• Umbrella/Excess Liability

Texas Risk Factors That Affect Insurance Costs

Texas is the only state where workers' comp is optional for most employers—non-subscribers lose critical legal defenses and face unlimited liability for employee injuries.

The Gulf Coast (Houston, Galveston, Corpus Christi) faces extreme hurricane risk, dramatically increasing property insurance costs in those areas.

Texas's massive geographic diversity creates vastly different risk profiles: Houston floods, North Texas tornadoes, West Texas windstorms, and Austin/DFW urban liability.

Best Restaurant Insurance Companies in Texas

We've identified the top insurance providers serving Texas restaurants. CoverWallet is our top pick for most Texas restaurants based on coverage options, pricing, and customer satisfaction.

Workers' Compensation Rules in Texas

Texas is UNIQUE: it is the only state where workers' compensation insurance is NOT mandatory for most private employers. Employers can choose to 'opt out' (become 'non-subscribers') but must notify employees and the Texas Department of Insurance annually. Non-subscribers lose key legal defenses and face unlimited personal liability for workplace injuries. Government contractors must carry workers' comp. Texas uses class code 9079 for all restaurants.