Restaurant Insurance in California

Types of Restaurant Insurance Coverage in California

Your unique restaurant in California requires special coverage. At BFIS, we provide the following types of restaurant insurance coverage in California:

Commercial Property Insurance

Commercial property insurance is a type of coverage that helps protect a restaurant's building and equipment from damage caused by fire, theft, vandalism, or other perils. If you own or rent a restaurant in California, you may need commercial property insurance to cover the cost of repairing or replacing your property in case of a covered loss.

Commercial property insurance can also include business income insurance, which helps replace your lost income if you have to close your restaurant temporarily due to covered property damage. This can help you pay for ongoing expenses such as rent, utilities, payroll, and taxes while your restaurant is being repaired or rebuilt.

This coverage is not required by law in California, but it may be required by your landlord, lender, or franchise agreement. It is also a smart way to protect your investment and ensure the continuity of your business in case of a disaster.

General Liability Insurance 

General liability insurance is another type of coverage that helps protect a restaurant from claims of bodily injury or property damage. It can cover costs associated with litigation, medical bills, and other damages if someone is injured while they’re on your premises.

Another common component of general liability insurance is product liability coverage. This helps cover claims related to any products or services you provide, such as food poisoning or a customer’s allergic reaction to one of your menu items.

Workers’ Compensation Insurance 

If you have employees in California, you are required by law to carry workers’ compensation insurance. This type of coverage helps pay for medical expenses and lost wages for employees who are injured on the job. Without it, you may be liable for those costs out of pocket.

It’s also important to note that workers’ compensation insurance covers employees in California regardless of where they were hired or if they are full-time, part-time, or seasonal.

Business Interruption Insurance 

Business interruption insurance is a type of coverage that helps protect restaurants from income loss due to events outside of their control, such as natural disasters or government-mandated shutdowns. It can help you pay for ongoing expenses while your restaurant is closed and help keep you in business until you’re able to reopen.

This coverage is not mandatory, but it’s an important way to protect your investment and ensure the continuity of your business in case of a disaster.

Liquor Liability Insurance 

Liquor liability insurance is a type of business insurance that covers claims of property damage or bodily injury caused by an intoxicated person who was served or sold alcohol by a business. This insurance is also known as dram shop insurance, and it is required in most states for businesses that sell or serve alcohol.

For California restaurants, liquor liability insurance is especially important because California has strict dram shop laws that hold businesses liable for the actions of their intoxicated customers. According to JVRC Insurance, a California restaurant and bar insurance provider, "California law allows victims of drunk driving accidents to sue the establishment that served the alcohol to the driver if they can prove that the establishment knew or should have known that the driver was visibly intoxicated or under 21 years old."

Liquor liability insurance can help California restaurants protect themselves from lawsuits, legal fees, medical bills, repair costs, settlements and judgments that may result from liquor-related incidents.

Commercial Auto Insurance 

If your restaurant in California has vehicles, you’ll need commercial auto insurance to help cover any costs associated with damage to or accidents involving those vehicles. This type of coverage can also help protect you from liability if one of your employees is injured while driving a company vehicle.

The minimum liability limits in California are 15/30/5. This means that the minimum amount of coverage your restaurant must carry is $15,000 per person for bodily injury, $30,000 total per accident for bodily injury, and $5,000 total per accident for property damage.

Cyber Liability Insurance 

Finally, cyber liability insurance is an important type of coverage for restaurants in California, as it helps protect against potential losses due to data breaches and other forms of cybercrime. This coverage can help pay for legal fees and damages related to a breach or hack, as well as the cost of repairing any damage caused by the incident.

Most commercial insurers offer some form of cyber liability insurance, and California restaurants need to make sure they have the coverage they need to protect their business in case of a cyber-attack.