Ghost kitchens in Michigan typically need product liability for meals eaten off-site, general liability that satisfies the kitchen operator’s lease, property and equipment breakdown for cooking lines, hired and non-owned auto if staff deliver, and workers’ compensation. Delivery platforms and shared-kitchen landlords set many of the requirements, so a delivery-only brand often needs coverage written around contracts rather than a dining room.
This page is for delivery-only restaurants, virtual brands run out of an existing kitchen, and operators renting stations in shared or commissary kitchens in metro Detroit, Lansing, Grand Rapids and other Michigan markets. With no customers walking in, the risk shifts from slip-and-falls to the food itself, the vehicles moving it and the contracts that govern the space.
State rules that still apply without a dining room
A delivery-only operation is still a food service establishment in Michigan. The local health department licenses and inspects it under the Michigan Food Law, and at least one certified food safety manager must be employed (MCL 289.2129). If several brands operate from one licensed kitchen, check with the health department about how licenses and certified managers are assigned before you launch another concept.
Workers’ comp is required under MCL 418.115 once you regularly employ three or more people at one time, or fewer if one employee has worked 35 or more hours a week for 13 weeks in the prior 52. If you run your own drivers, Michigan’s no-fault law applies: auto policies default to bodily injury limits of 250/500 (in thousands of dollars), buyers can elect lower but not below 50/100/10 (in thousands of dollars), and PIP medical is a separate required coverage. Kitchen equipment in Michigan also faces winter freeze and severe-storm power losses that can wipe out a day’s prep.
Virtual brand exposures owners underestimate
Three virtual brands share one line, and a cook plates the dairy-free bowl with a ladle used for a cream sauce. The customer, who ordered through an app two miles away, has a reaction at home and files a claim against the brand name on the receipt, which traces back to your entity. Product liability responds, but only if each brand name is properly listed on your policy.
Other claims come from the building and the road. In a shared kitchen, your fryer fire damages the neighboring tenant’s equipment and the operator’s hood system, and the kitchen agreement makes you responsible. An employee driving catering trays in her own car rear-ends another vehicle during a snow squall. A POS or ordering integration is breached and customer card data is exposed. And when a delivery platform suspends your listing after a complaint, sales stop even though the kitchen is fine.
Coverage lineup for a delivery-only kitchen
- Products liability — foodborne illness, allergen and foreign-object claims from every brand you run.
- General liability — required by kitchen operators and platforms; covers damage to a shared facility and injuries to visitors or couriers.
- Named insured and DBA schedule — each virtual brand listed so claims under a brand name are not disputed.
- Tenant property and improvements — your cooking line, smallwares and inventory in a leased or shared kitchen.
- Equipment breakdown and spoilage — walk-ins and reach-ins that fail when a storm knocks out power.
- Hired and non-owned auto — in-house drivers and staff using personal cars for runs and supply pickups.
- Workers’ compensation — burns, cuts and lifting injuries on a high-volume line.
- Cyber liability — online ordering, stored customer data and card processing.
- Business income — lost revenue after a covered fire or equipment failure shuts down production.
Rating inputs for ghost kitchen operators
Carriers look at total sales across all brands, cuisine types, fryer use and hood suppression, whether you are the master tenant or a station renter, how many brands share the line, the mix of third-party versus in-house delivery, and your claim history. Some carriers are more comfortable than others with multiple brand names under one entity, which is a big reason to shop the risk.
Keep an allergen matrix for each brand, color-code tools and cutting boards, document temperature logs and packaging seals, collect certificates from any contracted drivers, keep hood cleaning current, and read your kitchen agreement’s indemnity section before you sign it.
Matching carriers to a multi-brand kitchen
Provident Financial Group submits one application to multiple carriers and shows the offers side by side, so you can compare how each handles brand schedules, delivery exposure and shared-kitchen requirements. After binding, you can generate live certificates of insurance for kitchen operators, landlords and platforms. Call (866) 964-6660 to walk through your setup.
Frequently asked questions
Do delivery apps require ghost kitchens to carry insurance?
Requirements vary by platform and contract, and they change. Many ask for general liability and sometimes auto coverage, so review your merchant agreement before binding.
Does one policy cover all my virtual brands?
It can, if every brand name is listed as a DBA or named insured and the carrier underwrote the combined operation. Unlisted brands are a common claim dispute.
Who pays if my fire damages a shared kitchen?
Usually your general liability and any property coverage for damage to rented premises, depending on the kitchen agreement. Many agreements shift that responsibility to the tenant.
Do app couriers count as my employees for comp?
Third-party app couriers generally work for the platform, not you. Anyone on your own payroll counts toward Michigan’s comp threshold.
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