Cafes, Restaurants & Food Service

Who We Help

Whether you're signing your first lease or just opened your doors, we work with:

• Cafes and coffee shops, from espresso bars to neighborhood roasters
• Bakeries and dessert shops
• Restaurants and bistros, including those serving beer, wine or a full bar
• Juice bars, tea houses and small food concepts that offer catering or delivery

If you're opening in North Hollywood, Studio City, Burbank, Van Nuys, Sherman Oaks or elsewhere in the Valley and greater Los Angeles, we can help.

The Key Coverages for Cafes, Coffee Shops, Bakeries and Restaurants

Every business is different. These are the coverages we most often review with food and beverage owners, with an example of what each can look like in real life. Not every coverage is included automatically, and not every coverage is available for every business. Explore business insurance

Business Owner's Policy (BOP)

A Business Owner's Policy may combine commercial property and general liability in one package, and some policies also include business income coverage. For many small cafes and bakeries, a BOP, where eligible, is a common starting point.

Cafe scenario: Instead of juggling separate policies, you may have one policy, one renewal date, and one place to start building your protection.

General Liability

General liability may help protect your business if a customer, vendor or other visitor is injured on your premises, or their property is damaged, and your business is held responsible, depending on the policy's terms and exclusions.

Cafe scenario: A customer slips on a spilled latte near the pickup counter and hurts their wrist.

Commercial Property: Equipment, Inventory and Tenant Improvements

Commercial property insurance may help pay for covered damage to the physical things your business owns from covered causes of loss, such as fire, theft or vandalism, depending on the policy. For a cafe or restaurant, that can include:

• Equipment: espresso machines, grinders, ovens, refrigeration, furniture and POS hardware
• Inventory: coffee beans, flour, milk, packaged goods and supplies
• Tenant improvements and build-out: the counters, lighting, plumbing and finishes you paid to install in a leased space

Cafe scenario: A kitchen fire damages your new espresso machine and the custom counter you just installed.

Business Income (Business Interruption)

If a covered loss forces you to close temporarily, business income coverage can help replace lost income and pay ongoing expenses like rent and payroll while you rebuild, subject to the policy's provisions and limits.

Cafe scenario: After a fire, you're closed for several weeks during repairs, but rent and loan payments are still due.

Equipment Breakdown

Standard property coverage may not include mechanical or electrical breakdown, depending on the policy. Equipment breakdown coverage may help pay to repair or replace equipment that suddenly fails, and can include related lost income.

Cafe scenario: A power surge fries the control board on your espresso machine on a busy Saturday morning.

Food Spoilage

Food spoilage coverage may help pay for perishable inventory lost when refrigeration fails because of a covered cause, such as a breakdown or power outage, depending on the policy.

Cafe scenario: Your walk-in cooler fails overnight and you lose a full delivery of dairy, produce and pastries.

Liquor Liability

If you serve alcohol, for example under a California ABC Type 41 (beer and wine) or Type 47 (general) license, liquor liability coverage is strongly recommended. General liability policies often exclude claims arising from selling or serving alcohol, depending on the policy, and some landlords may require this coverage.

Cafe scenario: A guest who was served wine at your bistro is involved in an incident after leaving, and your business is named in a claim.

Workers' Compensation

California requires workers' compensation for employers with even one employee, including part-time employees. Workers' compensation can help pay for medical care and a portion of lost wages for employees injured on the job.

Cafe scenario: A barista burns their hand on the steam wand during the morning rush.

Commercial Auto and Hired & Non-Owned Auto

Commercial auto may help cover vehicles your business owns. Hired and non-owned auto coverage may help protect your business when employees use their personal cars, or when you rent a vehicle, for business errands, catering drop-offs or deliveries.

Cafe scenario: An employee rear-ends another car while delivering a catering order in their own vehicle.

Cyber and Data Breach

Every card swipe and tap at your point-of-sale system involves sensitive customer data. Cyber coverage can help pay for the costs of a data breach or cyberattack, such as customer notification, forensic investigation and recovery, depending on the policy.

Cafe scenario: Your POS system is compromised and customer card data may have been exposed.

Employment Practices Liability (EPLI)

EPLI may help protect your business against claims from employees or job applicants alleging wrongful termination, discrimination, harassment or retaliation, and may include the cost of defending those claims, depending on the policy.

Cafe scenario: A former shift lead claims they were let go unfairly and files a lawsuit.

Commercial Umbrella

An umbrella policy may add an extra layer of liability protection above your general liability, commercial auto and employer's liability limits, for covered claims that exceed those underlying limits.

Cafe scenario: A serious injury claim exceeds the limit on your general liability policy.

Get a Quote for Your Cafe or Restaurant →

For new owners: a free lease insurance review and help with certificates

Send us the insurance section of your lease. We'll walk you through what it asks for in plain English and review it with your current or proposed coverage. Once your policy is in place, we work to provide certificates of insurance promptly for your landlord, contractors and vendors.

Our lease review is educational, not legal advice.

Send Us Your Lease →

Why Work With Julia Sourfazian Insurance Agency

• Plain-English guidance. We explain what each coverage does and why it may matter for your business.
• Local and personal. We're based in North Hollywood and work with business owners across the San Fernando Valley and Los Angeles.
• Built around your opening timeline. From your lease review to your first certificate of insurance, we work with your opening timeline in mind.
• Here after you open. As you add staff, start catering, or apply for a liquor license, we can help you review your coverage as your business grows.

Request Your Cafe or Restaurant Insurance Quote

Tell us about your concept, location and opening date. We'll follow up to review your needs and the options that may be available.

Request a Quote →

Frequently Asked Questions

What insurance do I need to open a cafe or coffee shop in California?

Many cafes and coffee shops start with a Business Owner's Policy, where eligible, which may combine general liability and commercial property, along with workers' compensation. California requires workers' compensation for employers with even one employee, including part-time employees. Depending on your business, you may also want to consider equipment breakdown, food spoilage, cyber, employment practices liability, hired and non-owned auto, and an umbrella policy. Your lease may also require specific coverages and limits.

Is workers' compensation required if I only have one or two employees?

Yes. California requires workers' compensation for employers with even one employee, including part-time employees.

Do I need liquor liability insurance if I only serve beer and wine?

If you serve alcohol, for example under an ABC Type 41 (beer and wine) or Type 47 (general) license, liquor liability coverage is strongly recommended. General liability policies often exclude alcohol-related claims, depending on the policy, and some landlords may require liquor liability in the lease.

What insurance does my landlord typically require?

Requirements vary by lease. Landlords often ask for general liability, and some landlords may require limits such as $1M per occurrence / $2M aggregate. Many also ask to be named as an additional insured on your policy and for a certificate of insurance before you move in or begin construction. Check your lease carefully, or send us the insurance section for a free review.

Does my insurance cover the build-out I paid for in my leased space?

It may. Improvements you pay for in a leased space, like counters, lighting and plumbing, can be covered under the tenant improvements and betterments portion of commercial property coverage, depending on the policy and your lease. It's worth making sure the value of your build-out is considered when you set your coverage limits.

How soon can I get a certificate of insurance for my landlord?

Once your policy is in place, we work to provide certificates of insurance promptly for your landlord, contractors and vendors. Let us know your deadlines up front so we can plan around them.

This page provides general information only and is not an insurance policy or contract. Coverage descriptions are summaries; actual coverage is subject to the terms, conditions, limits and exclusions of the policy issued, and to underwriting review and approval. Not all coverages are available for every business. Scenarios are illustrative examples only. Lease review is educational and not legal advice.