The typical restaurant business owner's policy (BOP) Rainbow bound in the past year cost $6,812 a year at the median, with the middle half of policies landing between $3,858 and $12,841. State moves the number: the median was $9,161 in California, $8,334 in New York and $6,550 in Texas. Within any one state, though, the spread between a coffee counter and a steakhouse is far bigger than the gap between states.

So when a client asks "what's this going to run me?", the honest answer is a range plus the handful of factors that push them up or down it. Here's the range, straight from our own book, and the factors our underwriters actually look at.

Methodology: Based on 8,746 admitted restaurant BOP policies bound by Rainbow between Oct 21, 2025 and Oct 20, 2026 (California 2,149, New York 1,097, Texas 1,259). Active policies only, new business and renewals, annual written premium per policy. E&S companion policies are excluded.

What does a restaurant BOP cost in California, Texas and New York?

Here's the benchmark. The median is the policy right in the middle of the pack; the 25th and 75th percentiles show where the middle half of policies sit.

Three things stand out for agents:

• California runs about 34% above the national median, and its top quartile stretches past $18,000. That's the widest range of the three states.
• New York sits about 22% above the national median, but with a tighter top end than California.
• Texas comes in about 4% below the national median, even with the state's liquor and weather exposures in the mix.

Florida isn't in the table on purpose. We had fewer than 20 admitted restaurant BOPs bound in Florida in this window, which is below the minimum we use before publishing any figure. If you're placing Florida restaurants, our Florida restaurant insurance guide for agents covers what underwriters look at there, and the quickest way to a real number is a quote.

Why is restaurant insurance more expensive in California?

California's higher median isn't one thing; it's several things stacking up on the same plate.

• Property values. Building and business personal property limits tend to be higher, and a BOP's property side is priced off those values.
• Wildfire. Location-level wildfire scoring can trigger underwriting referral and affect the property side. Our California restaurant insurance guide walks through how that plays out.
• Sales. Liability pricing leans heavily on gross sales, so higher-revenue markets pull the median up.

The upside for agents: California is also a favorable dram shop state, which can help with liquor-related eligibility. Don't sell that as cheaper liquor coverage; it depends on the account and the policy.

Why does New York land between California and Texas?

New York's restaurants skew toward dense, urban, often older buildings, which shows up in property pricing. Liability is shaped by the state's Dram Shop Act and its legal environment. One NY-specific wrinkle worth knowing: on our admitted BOP, assault and battery coverage can't be sublimited in New York, so it's handled differently than in other states. If your client's model leans on late-night bar sales, talk to underwriting early. Our New York restaurant insurance guide has more on placing NY risks.

What drives a restaurant's premium up or down within a state?

Look at the bars on the chart: in every state, the 75th percentile is roughly three to four times the 25th. That spread is the real story. A quick-service counter with no fryers and a full-service dining room with a busy bar are both "restaurants," but they're not cooking with the same heat. The factors that move a quote the most:

1. Annual sales. Liability is largely rated on gross sales, so bigger revenue means bigger premium. It's the first number underwriting checks.
2. Type of operation. Limited cooking (no grease-producing equipment) generally prices lower than commercial cooking with fryers, grills or charbroilers. Fine dining with high building and contents values sits higher again.
3. Alcohol share of sales. As the liquor share of sales rises, so do liquor liability and assault and battery considerations. High alcohol mixes may move from admitted paper to our E&S companion, or out of appetite entirely.
4. Property limits and building condition. Owning the building, roof age, and updated electrical and plumbing all affect the property side.
5. Loss history. Claims count and incurred losses over the past three years matter for both eligibility and price.
6. Optional coverages and limits. Higher liability limits, liquor liability, employment practices, cyber and hired and non-owned auto all add premium when selected.

How should agents use these numbers with clients?

Benchmarks are a conversation starter, not a quote. Here's how we'd put them to work:

• Set expectations early. If a client hears "the median California restaurant BOP is about $9,000," a $14,000 quote for a 180-seat full-service spot with a bar won't feel like it came out of left field.
• Explain the outliers. If a renewal lands in the top quartile, walk the client through which factors put it there: sales, alcohol, property values or losses.
• Show what the client can control. Hood cleaning on schedule, a UL 300 suppression system, documented alcohol controls and a clean claims file all make an account easier to place. Our appetite guide spells out the requirements; confirm details with underwriting at underwriting@userainbow.com.
• Quote, don't guess. The fastest way to replace a benchmark with a real number is to run the quote. Rainbow-appointed agents can quote restaurants in minutes.

What should you gather before quoting a restaurant?

A clean submission gets a faster, more accurate number, and fewer back-and-forth emails during the Friday rush. Before you quote, have these ready:

• Annual gross sales, and the share that comes from alcohol
• Hours of operation, including when food service ends and when the bar closes
• Cooking equipment, hood suppression (UL 300) and the hood cleaning schedule
• Building details if the client owns it: roof age and the last electrical and plumbing updates
• Three years of loss history
• Any entertainment, events or delivery the client handles in-house

Is the cheapest restaurant policy the best one?

Not usually. Two BOPs at the same price can differ on what's actually in them: property valuation, business income limits, whether liquor liability is included or excluded, and how assault and battery is handled. Before comparing prices side by side, compare what each policy covers. Coverage always depends on the policy forms and endorsements, so read the quote, not just the total.

That's where agents earn their keep. Clients can find a price online; they can't easily find someone who knows why their quote came in where it did.

What's not in these numbers?

To keep the benchmark honest, a few things are out of scope:

• E&S placements. Restaurants placed on our non-admitted companion program are excluded, so higher-alcohol and harder-to-place risks aren't reflected.
• Workers' compensation and commercial auto. These are separate policies with their own pricing.
• Florida. Not enough admitted policies in the window to publish.
• Restaurant type. We're not breaking these numbers out by class yet; that's a future update.

We plan to refresh this benchmark regularly, so the numbers stay current as rates move.

Ready to quote your next restaurant?

Writing restaurants in California, Texas or New York and want a number you can actually take to the client? Get appointed with Rainbow and quote restaurant BOPs in minutes.