Ghost kitchens in California typically need product liability for every virtual brand they cook for, hired and non-owned auto for any delivery staff, tenant or damage-to-premises coverage demanded by the shared-kitchen operator, workers’ compensation, and cyber coverage for online ordering. California’s auto minimums of 30/60/15 are low relative to delivery claims, and quake damage needs a separate policy.
This page is for delivery-only kitchens, virtual restaurant brands, and operators renting stations inside shared commercial kitchens in Los Angeles, the Bay Area, San Diego and other California markets. With no dining room, your risk moves off the premises and onto the product, the platform and the road.
Permits, platforms and the shared-kitchen lease in California
A ghost kitchen is still a retail food facility. County or city environmental health agencies permit and inspect it under the California Retail Food Code, at least one owner or employee must pass a state-approved food safety certification exam, and line cooks and packers need California Food Handler Cards within 30 days of hire. Some counties, such as San Diego, run their own card programs.
The shared-kitchen license agreement often drives your insurance more than any statute. Expect requirements to name the operator as an additional insured, provide a waiver of subrogation, and carry coverage for damage you cause to their hood, walk-in or building. Delivery platforms may also ask for certificates before listing your brands. If you run your own drivers, remember California’s minimum auto limits rose on January 1, 2025 to 30/60/15 (in thousands of dollars), and a single serious crash can exceed them quickly.
Ghost kitchen claim scenarios
- You cook for four virtual brands from one line; a wing order from one brand carries peanut cross-contact, and the customer sues the brand name that appeared on the app, which traces back to you.
- A kitchen-mate’s fryer fire spreads smoke through the shared space, closing your station for ten days with no dining room revenue to fall back on.
- Your fryer flares up and scorches the operator’s shared hood system, and the operator bills you for repairs.
- An employee driving her own car to deliver a catering tray to an office park hits a pedestrian.
- A phishing email leads to a compromise of your ordering tablet accounts and customer data.
- A packer lifting cases of fry oil up to a shelf suffers a back strain.
Building a policy for a delivery-only kitchen
- Product liability — every brand you cook for should be listed, since claims arrive under the brand name on the app.
- General liability — premises exposure for drivers and couriers picking up at your door.
- Damage to rented premises — covers harm you cause to the operator’s kitchen or equipment.
- Hired and non-owned auto — protection when staff deliver in personal vehicles.
- Business income with dependent property — replaces income when a fire or outage closes the shared facility, not just your station.
- Equipment breakdown and spoilage — for your own freezers, fryers and refrigerated inventory.
- Cyber liability — ordering tablets, POS integrations and stored customer data.
- Workers’ compensation — required for one or more employees; WCIRB assigns restaurant classes by operation type, so we confirm yours with the carrier.
- Earthquake coverage — bought separately for your equipment and inventory.
Underwriting a ghost kitchen: what carriers want to know
Carriers look at total sales across brands, cooking methods (open fryers and charbroilers draw fire questions), whether you deliver yourself or rely on platform couriers, how many brands run through one kitchen, and the terms of the facility agreement. Newer operations without loss history may see fewer markets, which is where a broader search helps.
You can strengthen your submission with written allergen controls and color-coded prep tools per brand, a clear list of every brand name you operate, a copy of the facility agreement’s insurance section, documented hood cleaning, and a rule that only designated, licensed drivers make deliveries.
One submission, many carriers
Provident Financial Group is an independent agency. We take one application and compare multiple carriers that write delivery-only and shared-kitchen risks in California, then issue certificates of insurance for your kitchen operator and platforms after you bind. Call (866) 964-6660 to talk it through.
Frequently asked questions
Does one policy cover all my virtual brands?
It can, if each brand is disclosed and listed as a named insured or DBA. An unlisted brand can create a coverage dispute after a claim.
Who pays if the shared kitchen burns and I can’t cook?
Standard business income may only respond to damage at your own station; dependent property or civil authority extensions may be needed when the facility itself is shut down.
Do delivery platforms insure my food?
Platform coverage generally centers on the courier’s driving, not on illness or allergen claims from your food, which stay with your own liability policy.
Do I need workers’ comp if I only have two cooks?
Yes. California requires coverage for every employer with one or more employees, including family members on payroll.
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