Find restaurant insurance quotes
Save money by comparing insurance quotes from multiple carriers.
Choose from the nation's best insurance providers
Find insurance for restaurants in California
Learn about license requirements and the most common restaurant insurance policies in California.
Get the right coverage
Insureon helps owners in the restaurant industry compare insurance quotes from top-rated U.S. providers.
Get free expert advice and peace of mind knowing you have the right insurance options for your unique risks.
What are the most common policies for restaurants in California?
Restaurants may need different types of insurance coverage depending on the food and drinks they serve and their location. These are the most popular restaurant insurance policies for California food establishments to protect against potential risks and financial losses.
Business owner's policy
A BOP bundles commercial property insurance and general liability insurance under one plan. It’s one of the most popular and cost-effective options for California restaurants.
BEST FOR
- Food contamination and spoilage
- Commercial property coverage
- Business interruption incidents and closures
Workers’ compensation insurance
California requires workers' comp for food service businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Legal costs from employee injuries
General liability insurance
This insurance policy provides liability coverage and financial protection from common third-party business risks, such as a customer slip-and-fall accident at your food service business.
BEST FOR
- Customer bodily injuries
- Damaged customer property
- Product liability lawsuits
Commercial auto insurance
This policy covers the cost of accidents involving any delivery vehicles owned by your restaurant, including damage caused to another person's car and medical bills.
BEST FOR
- Medical bills from accidents
- Property damage from accidents
- Vehicle theft and vandalism
Liquor liability insurance
This policy covers legal fees, property damage, and medical costs if alcohol is served or sold at your restaurant to a visibly intoxicated person who then proceeds to harm others.
BEST FOR
- Injuries caused by intoxicated patrons
- Property damage caused by intoxicated patrons
- Legal defense costs
Cyber insurance
Cyber liability insurance helps restaurants recover from cyberattacks and data breaches. It's recommended for any business that stores customer information.
BEST FOR
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
Looking for different coverage? See more policies.
Which policies are required for restaurants in California?
Whether you're in San Francisco, Los Angeles, or elsewhere in California, you may need the following types of restaurant business insurance to comply with local laws:
Workers' compensation insurance
To meet state requirements and operate legally in California, restaurant owners with employees must carry workers’ compensation insurance, which helps pay for medical expenses and disability benefits if a worker is injured or becomes ill on the job. This requirement applies to all businesses with employees—even those based outside California but doing business in the state.
Independent contractors and sole proprietors without employees aren’t required to carry workers’ comp. However, many choose to purchase coverage for added protection, as most policies also include employer's liability insurance, which helps cover legal costs if an employee files a workplace injury lawsuit.
Commercial auto insurance
Commercial auto insurance covers property damage and medical bills resulting from an accident involving your restaurant business's vehicle. Depending on the coverage options you choose, it can also pay for vehicle theft, weather damage, and vandalism.
Minimum auto liability requirements for California businesses are:
- $30,000 in bodily injury liability or death liability per person
- $60,000 in bodily injury liability or death liability to more than one person
- $15,000 in property damage per accident
For vehicles that are used by the business but are leased, rented, or otherwise not owned by the company, you'll need a separate policy called hired and non-owned auto insurance (HNOA). This policy provides liability insurance but it does not cover damage to the insured vehicle.
Personal auto insurance will typically not cover any driving for business purposes, which is why you may need supplemental coverage.
Get restaurant insurance quotes from top U.S. providers.
Do I need a license or permit for my restaurant in California?
Yes. Restaurant owners in California may need several licenses and permits before opening or operating their business. Specific requirements can vary depending on your city or county, but most restaurants need the following:
- Business license: Required in most California cities and counties to legally operate your restaurant.
- Seller’s permit: Issued by the California Department of Tax and Fee Administration (CDTFA) if you sell food or beverages and collect sales tax.
- Health permit: Required from your local county health department to ensure compliance with food safety and sanitation regulations.
- Food handler’s permit: Needed for employees who prepare or serve food, verifying that they’ve completed food safety and foodborne illness training, within 30 days of starting a job.
- Liquor license: Issued by the California Department of Alcoholic Beverage Control (ABC) if your restaurant serves alcohol.
- Catering license: While there's no specific catering license, you're required to obtain a liquor license and all applicable food safety certifications if you plan to offer off-site catering services.
Additional permits may be needed depending on your operations, such as mobile food permits for food trucks or zoning and building permits for brick-and-mortar locations.
To get your license, you'll likely need to take an exam, have a certain amount of experience, pass a background check, and pay a fee.
How much you'll pay for the fee depends on whether or not you are the sole owner of the business. Additionally, your restaurant insurance coverage premiums will vary depending on the type of work you do, whether you have employees, and other factors.
How much does restaurant insurance cost in California?
A fast food restaurant that focuses on takeout will pay less for insurance than a large bar and grill or fine dining restaurant.
In California, restaurant business owners who buy policies from Insureon pay an average of:
General liability: $42 per month
Workers' compensation: $62 per month
Business owner's policy: $59 per month
Factors that affect restaurant insurance costs include:
- Kitchen equipment and property
- Business income
- Types of business insurance purchased, such as equipment breakdown and umbrella insurance
- Coverage options, such as policy limits and exclusions
- Location, such as San Jose, San Diego, or Sacramento
- Number of employees
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
How do I get California restaurant insurance?
Insureon helps you save time and money shopping for restaurant liability insurance by comparing quotes from top U.S. insurance companies.
Our insurance agents are licensed in California and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number of employees and restaurant operations
- Current and projected revenue
- Business partnerships
- Desired coverage limits
- Claims history
- Commercial lease insurance requirements
Apply for free insurance quotes today to find cheap restaurant insurance that fits your business needs. Most small business owners receive a certificate of insurance for proof of insurance the same day.