Consumer-friendly checklist for independent eateries, bars, cafés, and food trucks in Tempe, Arizona.

What’s Hitting Tempe Restaurants in 2025?

General & liquor liability premiums are up 9-14 % versus 2024 renewals.
Food costs climbed another 7.1 % year-over-year, squeezing margins.
Wage-and-hour claims jumped 18 % statewide after Arizona’s January minimum-wage bump to $14.65.

Why Are Insurance Costs Climbing Faster Than Menu Prices?

Dram-shop verdicts: Two multimillion-dollar awards in Maricopa County (2023-24) pushed liquor-liability base rates higher.
Slip-and-fall severity: Medical payouts now average $38 k per claim—up 22 % since pre-pandemic levels.
Workforce turnover: New hires drive workers’ comp loss frequency and spike EPLI (employment-practices) rates.

Late-night bars & brewpubs—longer alcohol-service hours equal higher liquor-liability surcharges.
Mom-and-pop diners leasing older buildings with outdated fire-suppression systems.
Food trucks & ghost kitchens—often overlook separate commercial-auto and inland-marine coverage.

Kitchen-hood maintenance logs: Submitting quarterly clean-hood certificates can snag 5-10 % property credits.
Alcohol-server training: Arizona Title 4 certification earns many carriers’ preferred-risk tier.
Bundle EPLI with GL: Combining policies often costs less than a stand-alone EPLI endorsement.
Usage-based workers’ comp (pay-as-you-go) smooths cash flow and removes audit surprises.

90 days before renewal—provides underwriters time to digest loss runs and hood-cleaning proof.
After menu or alcohol changes: New cocktail program or delivery expansion can alter rating factors.
Following major renovations—property values and business-interruption limits may need a bump.

Raise deductibles strategically: Property from $1 k → $2.5 k saves ~6 % while keeping disaster costs bearable.
Add a modest umbrella ($1 M–$2 M): Often under $400 /yr; lets you trim primary GL limits yet maintain total protection.
Document safety culture: Daily floor-spill logs, staff footwear rules, and incident-report forms can unlock liability credits.
Leverage telematics: Delivery drivers using app-based monitoring qualify for auto-liability discounts.

Budget for high-single-digit insurance hikes at 2025 renewal—unless you prove strong loss-control.
Combine liquor-server training, hood-cleaning records, and EPLI bundling to claw back 10 % or more.
Audit your policy today: Small tweaks (deductibles, class codes, driver lists) often save more than chasing a cheaper carrier.

Need a coverage check-up? Contact Inszone’s Tempe Hospitality team for a complimentary policy review before your next renewal.