If you’re opening a restaurant in California—or already running one—one of the first questions you’ll ask is “how much does restaurant insurance cost?” It’s a smart question. California has strict regulations, high traffic, and unique risks that make the right insurance essential for protecting your business.
General Liability Insurance Costs In California
General Liability protects you if a customer slips, gets sick from your food, or claims property damage.
Average cost:
Most California restaurants pay $70–$180 per month.
Why it matters in California:
- Many commercial landlords require proof of GL before approving a lease.
- California’s heavy foot traffic and high-density urban areas increase the risk of accidents.
- Local health departments often request liability coverage for permits.
Example:
A small café in Fresno may pay around $80/month, while a busy Los Angeles restaurant with higher foot traffic may pay closer to $150/month.
Workers’ Compensation Insurance Costs In California
Workers’ Compensation (WC) is mandatory under California Labor Code, even if you only hire one part-time employee.
Average cost:
Restaurants in California pay $2.65–$4.00 per $100 in payroll.
For most businesses, this equals $700–$1,200 per month, depending on job duties.
Why this coverage is so important here:
- California experiences more workplace injury claims than most states, especially in kitchens.
- Common injuries include burns, cuts, lifting injuries, and slip-and-falls.
- Failure to carry WC can lead to fines over $10,000 and even stop-work orders.
Example:
A 7-employee sushi restaurant in Sacramento might spend $900/month, while a larger full-service restaurant in San Diego may pay around $1,300/month due to higher payroll.
Commercial Property Insurance Costs In California
This covers your furniture, equipment, refrigerators, ovens, POS systems, and improvements.
Average cost:
Typically $120–$400 per month depending on building type, equipment value, and location.
California-specific considerations:
- Wildfire exposure raises rates in areas like Napa, Sonoma, and Santa Barbara.
- Many restaurants need extra coverage for smoke damage and business interruption due to natural disasters.
- Earthquake insurance is not included by default and must be added separately.
Business Owner’s Policy (BOP) Costs In California
A BOP bundles General Liability + Property Insurance, usually at a cheaper price.
Average cost:
$150–$350 per month
Why restaurants choose a BOP:
It covers the most common risks in one package and is often cheaper than buying separate policies.
Example:
A Santa Barbara juice bar paying $85 for GL and $140 for property coverage may get a BOP for around $180/month.
Employment Practices Liability Insurance (EPLI) Costs In California
EPLI protects you if an employee files a claim such as harassment, discrimination, or wrongful termination.
Average cost:
Restaurants usually pay $40–$120 per month.
Why it’s more important in California:
- California has some of the most employee-friendly labor laws in the U.S.
- Wage-and-hour claims are extremely common.
- Restaurants experience high turnover, which increases EPLI risk.
Commercial Auto and Delivery Insurance Costs In California
If your staff delivers food—or if you own delivery vehicles—you need commercial auto coverage.
Average cost:
$150–$350 per month per vehicle
Important California detail:
If drivers use their personal vehicles, you need Non-Owned Auto coverage, which is usually inexpensive but crucial for protecting your business in a claim.
What Impacts Restaurant Insurance Prices In California?
California insurance pricing depends on:
- Your location (wildfire zones cost more)
- Customer traffic
- Employee count and payroll
- Liquor sales
- Business type (food truck, café, bar, full-service, quick service)
- Claims history
- Equipment value
- Operating hours (late-night restaurants pay more)
Bars, nightclubs, and restaurants with high alcohol sales typically fall on the higher end of the pricing range.
Average Total Cost: How Much Does Restaurant Insurance Cost In California Overall?
While pricing varies by business size and risk level, here’s what most owners can expect in 2025:
- Small restaurants or cafés: $300–$1,200 per month
- Mid-sized restaurants: $1,200–$2,500 per month
- Large or higher-risk restaurants: $2,500–$4,000+ per month
This includes General Liability, Workers’ Comp, Property, EPLI, and optional coverages like Commercial Auto or Cyber.
How California Restaurants Can Lower Insurance Costs
You can often reduce premiums by:
- Installing fire suppression and ventilation systems
- Reducing slip hazards with non-slip mats
- Following California food-safety certification standards
- Implementing written HR policies
- Bundling policies (BOP discounts)
- Keeping a clean claims record
- Using employee safety training programs
Some insurers also offer discounts for new fire equipment or modernized kitchens.
Bottom Line: What California Restaurants Really Pay
California restaurants face higher risks, stricter laws, and busier environments than many other states — which all influence insurance prices. Most restaurants spend between $300 and $2,500+ per month, depending on size, location, payroll, and whether they serve alcohol.
If you’re still asking “how much does restaurant insurance cost?”, the truth is simple: your exact number depends on your unique business. The good news is that California insurers offer flexible plans, monthly payment options, and bundle discounts that can make coverage more affordable.
The smartest next step is to compare real California-based quotes. It takes only a few minutes and gives you a clear, accurate price tailored to your restaurant—so you can protect your team, meet state laws, and stay focused on serving customers.