Restaurant insurance from kitchen to dining room.
A business owner's policy, liquor liability, workers' comp and umbrella limits for restaurants, cafes, bars and food service businesses, shopped across carriers that write them.
Quick answer Alishahi Insurance, Saman Alishahi's independent brokerage (California License #4348151), shops restaurant insurance, including property, liability, liquor liability and workers' comp, across carriers that write restaurants, cafes, bars and food service businesses.
- Restaurant insurers look at cooking type, fire suppression, alcohol sales, hours and payroll, so a cafe and a late-hours full-service bar land in very different markets.
- California requires restaurant employers to carry workers' compensation insurance, even with one employee.
- Liquor liability covers claims tied to serving alcohol; landlords commonly require it, and general liability policies often exclude those claims.
- Many restaurants can get a business owner's policy, depending on size, cooking and alcohol sales, while larger or higher-risk restaurants may need separate property and liability policies.
- Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · En español · How this page is researched
Every restaurant is rated differently
Carriers look at cooking type, fire suppression, alcohol sales, hours and payroll. A cafe and a full-service bar with late hours land in very different markets.
I match your restaurant to the carriers whose guidelines fit it, then set limits to meet your lease and liquor license requirements.
- Business owner's policyProperty, liability and business income bundled for eligible restaurants.
- Liquor liabilityClaims tied to serving alcohol, often required by landlords.
- Workers' compRequired in California for employers, even with one employee.
- Spoilage and equipmentFood spoilage and equipment breakdown for coolers and kitchen equipment.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- The restaurant: type, seats, hours and square footage.
- Sales: annual food and alcohol sales.
- Cooking: fryers, open flame and hood suppression.
- Staff: number of employees and annual payroll.
- Lease: insurance requirements.
- Current policy: declarations and loss runs.
Liability: general, liquor and employment
General liability
General liability covers bodily injury and property damage to customers and others, such as a guest who slips on a wet floor or is burned by a spilled drink, plus products and completed operations coverage for foodborne illness claims and allergic reactions. Many landlords require restaurant tenants to carry general liability and name them as additional insureds. See our additional insured guide.
Liquor liability
If you sell or serve alcohol, liquor liability covers claims arising from injuries caused by intoxicated patrons, a risk generally excluded from general liability for businesses that sell alcohol. Many states have dram shop laws that allow injured third parties to sue businesses that served alcohol to visibly intoxicated people or minors. California's dram shop rules are narrow: Business and Professions Code §25602.1 allows claims against licensees who sell alcohol to an obviously intoxicated minor. Other states impose broader liability.
Licensing matters too. In California, the Department of Alcoholic Beverage Control issues licenses and offers the Responsible Beverage Service (RBS) training program, which California requires for alcohol servers and their managers at on-premises licensees: California ABC. Server training and clear policies on checking IDs and cutting off service help reduce risk and may help with pricing.
Employment practices liability (EPLI)
Restaurants have high turnover and many employees, creating exposure to claims of wrongful termination, discrimination, harassment and wage disputes. EPLI covers many employment claims, though wage and hour claims are often excluded or sublimited. Clear policies, training and documentation help.
Workers’ comp, delivery and catering
Workers' compensation
Most restaurants with employees must carry workers' compensation. In California, employers with even one employee must have coverage: California Department of Industrial Relations – Workers' comp. Restaurant injuries often include burns, cuts, slips and strains. Workers' comp rates depend on class codes and payroll, so accurate classification matters. See our California workers' comp guide.
Delivery and auto exposure
- Hired and non-owned auto (HNOA): liability coverage when employees use their own cars for business errands or delivery. Employees' personal auto policies may exclude delivery.
- Commercial auto: if the business owns vehicles, including catering vans.
- Third-party delivery platforms: clarify who's responsible for drivers and food handling.
See our gig driver guide.
Food trucks and caterers
Food trucks need commercial auto for the vehicle, general liability, property coverage for equipment, and often special event certificates. Caterers need liquor liability if serving alcohol, and coverage for equipment off-premises. Venues often require certificates naming them as additional insureds; see our special event insurance guide.
Restaurant insurance, answered
Do restaurants need liquor liability insurance?
If you serve alcohol, liquor liability protects against claims tied to serving it. Landlords commonly require it, and general liability policies often exclude those claims.
Is workers' comp required for a restaurant?
Yes. California requires employers to carry workers' compensation insurance, even with one employee.
Can a restaurant get a business owner's policy?
Many restaurants can, depending on size, cooking and alcohol sales. ISO's businessowners program, for example, limits restaurants to 7,500 square feet, with seating caps and a limit on the share of sales from alcohol, and each carrier adds its own rules. Larger or higher-risk restaurants may need separate property and liability policies.
Should a restaurant add an umbrella to its business owner's policy?
If a lease, franchise agreement or event contract asks for higher limits than the business owner's policy carries, an umbrella is the usual answer. It sits above the policy's liability limit and, when they're listed underneath it, above auto and employer's liability. Some umbrellas exclude liquor claims or require a set liquor limit underneath, so I check that before you bind.
Does insurance cover spoiled food after a power outage?
Food spoilage coverage can, depending on the cause and your policy's terms. It's often added to a restaurant policy.
Are delivery drivers covered by my restaurant policy?
Not automatically. Hired and non-owned auto coverage can provide liability coverage when employees use their own cars for deliveries.
What is business income coverage?
Coverage for lost income and continuing expenses while a restaurant is closed due to a covered property loss.
Do you offer restaurant insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Tell me about the restaurant. I'll shop it.
Type, sales, alcohol and payroll are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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