The Real Cost of Business Insurance Delaware
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A Restaurant Owner’s Guide (2025)






Running a Restaurant in Delaware
Delaware restaurant owners spend $3,000 to $12,000 on business insurance on average. This makes it crucial to understand what your money buys and why. Business insurance requirements in Delaware can impact your restaurant’s profits and long-term success.
Finding affordable insurance in Delaware doesn’t need to cause you stress. Insurance prices depend on factors like your location, number of employees, and chosen coverage. However, proven methods exist to secure good protection without breaking the –
bank. Understanding which types of coverage are mandatory and which are optional allows you to make informed decisions about your insurance expenses.
This guide breaks down the real costs of restaurant insurance in Delaware for 2025. It helps you get a handle on what you need to have, weigh different coverage options, and discover practical ways to cut your costs while keeping your business well-protected.
Understanding Basic Insurance Requirements for Delaware
Keep in mind that Delaware law makes specific insurance coverage mandatory for all restaurant businesses. Workers’ compensation insurance is a must for all businesses with one or more employees, regardless of their full-time or part-time status. Also, any vehicles the business owns need commercial auto insurance with specific minimum coverage requirements.
Delaware restaurants must have these key types of coverage:
- Workers’ compensation: Covers medical treatment, physical rehab, and wage replacement for employees who suffer injuries on the job.
- Commercial auto insurance: Has minimum coverage requirements of $25,000 to cover bodily harm to one person, $50,000 for each accident, and $10,000 to cover damage to property.
Delaware follows a modified comparative fault system with a 51% negligence standard. This means people can receive damages if they are less than 51% responsible. The state also doesn’t cap personal injury awards, making full coverage crucial for restaurant owners.
For Delaware-specific rules, restaurants need health permits and maintain food safety in all their operations. Delaware’s Workplace Safety Program offers insurance discounts of up to 19% to businesses that keep their workplaces safe.
The state sets different minimum coverage limits based on the policy type. For instance, those who apply pesticides need coverage of at least $300,000 for body injuries or deaths and $100,000 for property damage. Though the law doesn’t require general liability insurance, businesses should consider getting it. This is because a typical slip-and-fall claim costs about $20,000.
Breaking Down Insurance Costs by Coverage Type
Let’s look at the real costs of key insurance types for Delaware restaurants. General liability insurance forms the basis of restaurant protection. It costs restaurants, on average, $141 per month or $1,691. This coverage guards against common events like customer injuries and property damage.
Property and equipment coverage needs close attention. A full property insurance policy includes:
- Equipment breakdown protection
- Food spoilage coverage
- Business interruption insurance
- Building and contents coverage
Equipment insurance proves useful, as it covers repairs, replacement costs, and even lost income when equipment breaks down. Keep in mind that one kitchen fire can cause damages of $1.5 million.
Workers’ comp and employment practices liability make up another big expense. Restaurant owners shell out about $113 per month or $1,359 per year for workers’ comp insurance. But these costs are going down. Delaware has seen workers’ comp rates drop for eight years in a row.
Employment Practices Liability Insurance (EPLI) has become more important, as the average employment-related claim costs $250,000. Because of this, many restaurants now include EPLI with their Business Owner’s Policy to get better protection against discrimination and harassment claims.
The Delaware Workplace Safety Program gives businesses a chance to cut these expenses. Companies that take part can get up to a 19% discount on their premiums. This program has helped almost 1,000 employers save about $5.6 million in 2023 alone.
NOTE: The information provided about Delaware restaurant insurance costs and requirements is a general guideline. Actual premiums and coverage specifics can vary based on restaurant size, location, claims history, and selected policy limits. While workers’ compensation and commercial auto insurance are mandatory, optional coverages like general liability, property insurance, and employment practices liability are highly recommended to protect against unforeseen risks.
Consulting with an experienced insurance agent ensures you get accurate, tailored advice for your business needs, helping you navigate state regulations and secure the right coverage at a competitive rate. Always review policy details carefully to ensure full compliance and protection.
Strategies to Find Cheap Insurance in Delaware
Shopping smart for insurance can save your Delaware restaurant a lot of money. You can use several –
tried-and-true methods to get better rates without skimping on protection.
Comparing insurance providers and quotes
Working with independent insurance agents gives you clear benefits when looking for coverage. These agents can look at many quotes at once and often know Delaware’s specific rules better than big national companies. This means they can help you look at policies based on both what they cover and how much they cost.
It’s worth noting that basic business insurance for restaurants in Delaware begins at around $20 per month. However, rates differ among providers making it essential to shop around to find the best deal.
Combining policies to get better rates
Grouping multiple types of coverage into one comprehensive package often results in big savings. Think about these advantages of bundling:
- Save up to 25% through discounts on policies
- Get up to 10% off when you buy BOP and workers’ comp together
- Handle claims easier with one company
- Pay premiums and renew policies more
FAQs: The Real Cost of Business Insurance in Delaware
Delaware requires workers’ compensation insurance for all employees and commercial auto insurance for business-owned vehicles.
General liability costs an average of $141 per month, workers’ comp is around $113 per month, and property insurance costs $1,000–$3,000 annually.
It’s not mandatory but highly recommended to protect against common claims like customer injuries, which can average $20,000 per claim.
Participate in Delaware’s Workplace Safety Program for discounts, bundle policies, and implement risk management measures like fire suppression systems.
Coastal locations face higher risks from hurricanes and flooding, leading to increased premiums. Proximity to fire stations and compliance with building codes also affect costs.

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