Optocouplers are a standard way to isolate circuits. With I2C, the use of optocoplers is a bit more challenging because the signals are bi-directional. One way to do it is to use an I2C bi-directional buffer and a couple of opto-isolators as shown in this image:
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Recently, Analog Devices released a fully integrated solution, the ADUM1250/2250. An 8-pin/16-pin chip solution with transformer-based isolation:
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The technology is called "iCoupler Technology" and claims to be superior to pure optical or pure transformer isolation. The following diagram gives an idea on the technology:
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