Published On: July 18, 2023

Restaurants can be lucrative business opportunities, but they often come with many risks and requirements. One of these requirements is restaurant insurance. There are different types of insurance to consider for your restaurant, some of which are legally required by the state of California. If you are opening a restaurant in California, here are the types of insurance that you should consider:

General Liability Insurance

General liability insurance protects you from third-party claims relating to negligence, property damage, injury, and libel. California does not require general liability restaurant insurance, but having it could save you money if someone files a claim against you. General liability insurance can help protect you and your restaurant in many situations. This insurance also makes for a good base policy that you can build on later.

Liquor Liability

Liquor liability insurance protects you from being held liable for the poor choices made by an intoxicated customer. Without this coverage, your restaurant could be legally responsible for any fights or altercations arising from alcohol consumption. You could also be held accountable for a customer’s drunk driving and any resulting damages. Liquor liability insurance can help protect you and your restaurant from the legal consequences of alcohol-related situations.

Worker’s Compensation

If one of your employees becomes injured or sick because of an event at work, worker’s compensation insurance can provide them with financial compensation. This compensation helps employees cover medical costs or lost wages while out of work. Worker’s compensation also protects you and your restaurant from being involved in a negligence lawsuit. California requires all businesses with employees to have a worker’s compensation policy.

Business Owners Policy (BOP)

If you want to combine multiple types of restaurant insurance into one comprehensive policy, consider a Business Owners Policy. BOP insurance includes general liability, business interruption, and commercial property insurance. You can customize this insurance to get the necessary coverage without paying for coverage you do not want. If you are overwhelmed by the different types of restaurant insurance, start by looking at a Business Owners Policy.

Property Insurance

Property insurance covers damage to your business’ property caused by natural disasters, equipment breakdowns, criminal activity, accidents, and food contamination. If your business is a victim of one of these situations or a similar one, property insurance can help you cover your losses and decrease the financial burden. The cost of your policy may vary based on your location and the particular risks associated with the area. If you are financing or leasing your restaurant, you may need to have property insurance before opening your restaurant. 

Directors and Officers (D&O)

A Directors and Officers policy can protect your restaurant if someone sues an executive for something they did at work. Consider a D&O policy if you are not the sole owner of your restaurant and plan to have other joint owners. This insurance can protect you and your restaurant if a co-owner or shareholder is sued for an action committed while working.

Errors and Omissions (E&O)

Errors and Omissions insurance protects your restaurant from claims that arise from professional errors. It can protect you if a third party feels your restaurant did not perform a particular service as promised. E&O insurance can help cover your losses in these situations.

How To Get Restaurant Insurance in California

To get restaurant insurance in California, contact an insurance agency first. Tabak Insurance is an agency that specializes in restaurants, bars, and nightclubs. We can recommend which types of insurance you should get for your restaurant to minimize risk without spending money on unnecessary coverage. You can fill out our online questionnaire to get a quote if you already know which insurance type you want. 

Our questionnaire securely collects your contact information, the location of your restaurant, your sales, and the type of insurance you are interested in. This information helps us provide an accurate quote so you know what costs to anticipate. After filling out our questionnaire, we will get in touch with you so that we can finish the policy-creation process. We aim to make our quote process as quick, easy, and efficient as possible so you can get insured within 24 hours or less. The cost of restaurant insurance in California can vary based on the coverage you choose, the type and size of your restaurant, and where you are located in California. 

Contact Tabak Insurance To Insure Your Restaurant

Having the right restaurant insurance can help protect you and your restaurant from financial losses in various legal situations. It can also help shield you from potential risks and liabilities. Insurance policies like general liability, property, liquor liability, and worker’s compensation can help protect your restaurant’s assets, operations, and reputation. Tabak Insurance can provide the customized coverage you need to run a successful restaurant. Contact us today for a quote and get insured within 24 hours or sooner.

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