Restaurants in Detroit, MI typically need general liability, property and business income coverage, workers’ compensation and, for any retail liquor licensee, liquor liability. The Michigan rule that matters most: MCL 436.1803 makes financial responsibility for dram shop claims a condition of holding a retail license, and most restaurants meet it by carrying liquor liability insurance.
This page is for Detroit operators: downtown and Midtown restaurants, neighborhood spots, bars near the stadiums and caterers serving the city’s offices and event spaces.
Detroit’s comeback dining scene and the risks that came with it
Detroit’s downtown and nearby neighborhoods have filled with new restaurants over the past decade, many in renovated older commercial buildings. Pro sports venues, theaters and casinos sit close together downtown, so event nights bring intense, short rushes of guests who are drinking before or after a game or show. Weekday lunch depends on office and hospital workers, and delivery is a large share of sales for many kitchens.
Michigan’s weather adds its own claims: severe thunderstorms, winter snow and ice, freeze-related pipe bursts and flooding. Heavy rain can overwhelm drainage and push water into basements, so sewer backup coverage and flood options deserve a look alongside your main property policy.
Michigan liquor rules every Detroit licensee lives with
MCL 436.1801 lets people injured because a retail licensee unlawfully served a minor or a visibly intoxicated person sue the licensee. Plaintiffs must give written notice within 120 days of hiring an attorney, must name and keep the intoxicated person or minor in the suit, and must file within two years. There’s a rebuttable presumption that licensees other than the last one to serve are not liable, and there is no statutory damages cap.
New on-premises licensees, anyone acquiring more than half of a license, and licensees ordered by the Liquor Control Commission after violations must have server-trained supervisors on every shift when alcohol is served. And if you don’t hold a license, Michigan doesn’t allow BYOB at restaurants: MCL 436.1913(2) bars food businesses from allowing alcohol consumption without one.
Staffing, comp and the Michigan headcount test
Michigan requires workers’ comp once you regularly employ three or more people at one time, or even one employee who has worked 35 or more hours a week for 13 weeks or longer in the past 52 weeks (MCL 418.115). Coverage is bought from private carriers, through self-insurance, or through a group fund, with the CAOM-administered placement facility as the assigned-risk option. Going without is a misdemeanor, each day is a separate offense, employees can sue in civil court, and corporate officers can be personally liable.
No-fault auto and delivery
Michigan is a no-fault state. Minimum liability limits are 50/100/10 (in thousands of dollars), with higher default limits unless the buyer elects lower ones, and PIP medical coverage is a separate required coverage with selectable levels. That system affects how injuries involving owned or hired delivery and catering vehicles are handled, so review commercial auto or hired and non-owned auto with us before drivers hit the road.
Claims that show up in Detroit restaurants
- A post-game patron served while visibly intoxicated injures another driver; the notice letter names two bars, and the last one to serve becomes the focus.
- An employee’s personal car is used for a catering drop and is involved in a crash.
- A heavy summer storm backs sewage into a basement prep area.
- A part-time dishwasher crosses the 35-hour threshold and is injured before comp was purchased.
What a Detroit restaurant should carry
- Liquor liability — meets the dram shop financial responsibility requirement for retail licensees.
- General liability — guest injuries during event-night crowds and on patios.
- Commercial property — renovated interiors, equipment and inventory.
- Sewer backup and flood options — for basement kitchens and storage.
- Business income — lost revenue during a covered closure.
- Workers’ compensation — once you meet Michigan’s headcount or hours test.
- Commercial or hired and non-owned auto — delivery and catering driving under no-fault rules.
- Umbrella — added limits for high-volume bars and event venues.
What drives a Detroit restaurant’s premium
Carriers look at liquor sales percentage, hours, entertainment and security, building age and updates, sprinklers and hood suppression, delivery volume and driver records, payroll by class and losses. Documented server training, strong ID checks, a written incident log and driver eligibility rules all help.
How quoting works
US Restaurant Insure is the restaurant site of Provident Financial Group, an independent agency. You complete one application, we take it to multiple carriers quoted through our agency, and we lay out the options side by side. Once bound, you can pull live certificates of insurance for landlords, the MLCC filing, or event venues. Call (866) 964-6660 with questions.
Frequently asked questions
Can I hold a Michigan liquor license without liquor liability insurance?
Retail licensees must show financial responsibility for dram shop claims. Insurance is the usual route, though the statute also allows cash, securities, a surety bond or a group self-insurance pool.
When does a small Detroit restaurant have to buy workers’ comp?
When you regularly employ three or more people at one time, or one employee has worked 35 or more hours a week for at least 13 weeks in the last 52.
Can my unlicensed restaurant let guests bring beer?
No. Michigan prohibits restaurants from allowing alcohol consumption without a liquor license, with a narrow exception for private events with no charge to guests.
Does my personal auto policy cover deliveries for my restaurant?
Often not. Business use can be excluded, so commercial auto or hired and non-owned auto should be reviewed.
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