Published On: June 21, 2023

If you own a restaurant in California and want to know how much restaurant insurance costs, Tabak Insurance can help you. Restaurant insurance is a worthwhile investment that can help protect your business. It is difficult to say how much California restaurant insurance will cost you because it depends on many factors. We can give averages of the types of insurance we offer and make it easy to get a quote so you know exactly how much it will cost.

Types of Restaurant Insurance and Average Cost

We offer a few different types of insurance. Remember that the average cost and range may not apply to your specific restaurant. 

Business Owner’s Policy

Business Owner’s Policy insurance has all the necessary coverage rolled into one policy. It includes general liability, commercial property, and business interruption insurance. This policy is customizable and helps you save money through bundling. The cost of this policy depends on factors like the value of your equipment and your location. The average cost for this policy is $2,160 annually but can range from $1,100-$10,500 a year.

General Liability Insurance

General liability insurance is a basic insurance that protects you from third-party claims for things like injury, libel, negligence, or property damage. This is helpful in bars or restaurants to help protect both you and your clients in case of injury. The average cost for this insurance is $950 annually, ranging from $500 to 6,000 annually.

Property Insurance

If your business property is damaged because of a natural disaster, accident, equipment breakdown, food spoilage, or criminal activity, property insurance can help cover your losses. The average cost for property insurance is $742 a year, with a range of $5–2,500. The value of your property can play a large role in the cost of this type of insurance.

Liquor Liability Insurance

Liquor liability insurance protects you from being held liable for the actions of intoxicated customers. This can include things such as drunk driving or any injuries sustained because of intoxication. Depending on your state, this type of insurance may be required to open a restaurant that serves alcohol, and you may not be able to get your liquor license without it. Liquor liability insurance averages $620 a year, ranging from $350-3,000.

Workers’ Compensation Insurance

If one of your employees is injured at work or catches an illness while working, workers’ compensation insurance can assist in providing financial compensation. It covers necessary medical costs and lost wages. Almost all states require businesses to have workers’ compensation insurance. The average cost for this insurance is $1,500 a year, ranging from $600-10,000.

Factors That Influence the Cost of Your Insurance

One reason it is difficult to provide an exact cost for your restaurant insurance is that the cost is affected by multiple factors, including:

The Type and Size of Your Restaurant

The size and type of your restaurant can determine the cost of your insurance. When we are creating your quote, we might consider the type of food you serve, the square footage of your restaurant, and whether you have a bar or an entertainment area. Fine dining restaurants may have higher costs compared to fast food restaurants or smaller cafes. Larger restaurants can increase your property insurance costs because there is more to protect.


The location of your restaurant also plays a large role in determining the cost of your insurance. California is a large state, and each location can come with its own risks. If your restaurant is in an area prone to natural disasters, you may have a higher insurance premium. Areas that have higher traffic may also be more expensive because there may be a higher chance of accidents or injuries, which can impact your costs.

Coverage Types and Limits

The type of insurance itself, and the limits that you choose, can also impact your cost. Your premiums will be higher if you want extensive coverage with higher coverage limits. We can help you assess the needs of your restaurant so that you can find a balance between cost and coverage.

Claim History

You may have a claim history if you have had insurance for your restaurant before. If your history involves frequent or expensive claims, your insurance may cost more. You may be able to lower the cost of your insurance over time by reducing the amount of claims you make.

Get Customizable Insurance With Tabak Insurance

One way to save money on your insurance is to only pay for coverage that you need. Tabak Insurance offers customizable insurance so you can cover what you need and avoid paying for what you don’t. We can also provide you with a quote within 24 hours or less, so you can know what it will cost. If you are looking for restaurant insurance, apply for a quote or call us to speak with one of our experts.

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