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At minimum, restaurants need Commercial General Liability (for slip-and-falls and customer accidents), Commercial Property (for the building and kitchen equipment), Workers' Compensation (mandatory in California with any employees), and Liquor Liability if you serve alcohol. A Business Owners Policy (BOP) often bundles General Liability and Property at a discount.

Restaurant insurance costs vary based on revenue, type of restaurant, alcohol sales, payroll, and location. A small café might pay $1,500–$3,000 annually for a BOP. A full-service restaurant with liquor and a dozen+ employees can run $5,000–$15,000+ once you add Workers' Comp and Liquor Liability. Your specialist can shop the market for your specific operation.

Yes. Liquor Liability applies to any business that serves or sells alcohol — beer, wine, or spirits all qualify. If a patron causes injury or property damage after being served at your establishment, you can be held legally responsible under California's dram-shop laws. A single liquor liability claim can easily exceed $1 million.

Standard BOP policies don't include food spoilage by default. You need a Food Spoilage endorsement that covers loss of refrigerated inventory caused by equipment failure or power outage. Coverage usually starts at $10,000 and is essential if a single walk-in cooler holds tens of thousands of dollars of product.

Foodborne illness claims are covered under Products / Completed Operations, which is part of your Commercial General Liability policy. It pays legal defense costs and settlements if a customer alleges illness from food you served. Make sure your products limit matches your aggregate limit (typically $2M) so you have enough room if multiple people get sick from a single incident.

Personal auto policies exclude business use, so delivery driving must be covered separately. If your restaurant owns delivery vehicles, you need Commercial Auto. If drivers use their own cars (common with pizza shops and DoorDash overflow), you need Hired and Non-Owned Auto (HNOA) coverage. Without HNOA, an at-fault driver's accident on a delivery run leaves your restaurant exposed.

Standard Commercial Property covers damage from external events — fire, theft, weather, vandalism. It does NOT cover mechanical or electrical failure of your equipment. Equipment Breakdown fills that gap: covers walk-in coolers, ovens, ranges, ice machines, and dishwashers when they fail from internal causes (compressor burns out, motor seizes, control board fries). Given that a single commercial unit can be $10,000+, this is highly recommended.

Yes — California requires Workers' Compensation as soon as you have one or more employees, including part-time. Restaurants are classified as higher-risk for Workers' Comp due to burns, knife cuts, slip injuries, and back strains, so rates are higher than for office workers. Failing to carry Workers' Comp in California carries criminal penalties up to $10,000 and a year in jail.