What is restaurant insurance?
Restaurant insurance can protect your restaurant from unexpected claims for loss, damage or accidents that could occur because of your business.
Restaurant insurance can also include employers' liability insurance, which is a legal requirement if you employ staff. It could protect your restaurant if an employee is injured or falls ill, as a result of working at the restaurant.
What does restaurant insurance cover?
Whether you own a brasserie, bistro, pizzeria or an haute cuisine restaurant, the types of risks involved are the same. That’s because of the fast-pace nature of the work, hot kitchens and a daily influx of customers.
Restaurant insurance can provide the cover you need to protect you, your staff and your customers. Here are some examples of the types of cover you might consider, when comparing business insurance quotes for your restaurant:
- If a sous chef slips on a damp floor and burns their hand on one of the hobs, employers’ liability insurance could cover the medical costs, compensation and legal fees if they make a claim against you.
- If a waiter spills soup, scalding a customer, public liability insurance could cover damage and injury costs if a claim is made against your restaurant.
- Product liability insurance could protect you if a customer suffers from food poisoning because of something they ate in your restaurant.
- If there’s a fire in your commercial kitchen or your restaurant is flooded, business contents insurance could cover the costs of repairing or replacing expensive kitchen equipment and furniture. If you have to close the restaurant for repairs, business interruption insurance could help protect you against loss of earnings.
- Some insurance policies also offer new for old equipment cover. This means if a brand new kitchen fryer is destroyed in a fire or is stolen, you could receive an exact replacement in the event of a claim.
- Loss of alcohol licence cover could reimburse you for loss of revenue and product value, as long as you didn’t lose the licence through misconduct.
Frequently asked questions
What type of insurance do I need for a restaurant?
Restaurants can have a number of insurance needs to ensure the business is protected in the event of unexpected claims for losses or damages.
Your restaurant may have food, furniture, and expensive specialist kitchen equipment, which are essential to keep the business running smoothly and might need protecting against theft and damage. Any disruption to a restaurant can be especially damaging too, as your customers rely on your availability.
You’ll need to consider what cover is required to protect against claims from members of the public in the restaurant. If you employ staff, you are legally required to have employers’ liability insurance.
There are several types of insurance that can help protect your restaurant:
Public liability insurance: If someone becomes ill because of the food you’ve provided, or slips and falls on your premises, you could claim on your insurance to cover any compensation due to them, or any legal costs if they take you to court.
Contents insurance: This typically provides cover for all your stock if there was a break-in or a fire. It can also cover furniture, fittings, tills, kitchen equipment, and possibly freezer contents, too. A further option is cover for any cash on the premises.
Employer’s liability insurance If you have employees, then this insurance is a legal requirement. It can cover you if any of them is injured or becomes ill as a result of working for you.
Business interruption insurance : This insurance can help cover any loss of income in the event trading is interrupted and if you have to close your restaurant for a period of time.
Buildings insurance: If you own the building where your restaurant is located, you may want buildings insurance to cover the cost of repairing any damage to the structure of your building, or rebuilding it if necessary. If you rent the space, then your landlord should be responsible for the buildings insurance.
How do I calculate the value of my stock?
When you take out business contents insurance for your restaurant, you’ll need to include an estimated value of your stock. This includes wine and spirits.
You’ll need to calculate the ‘trade’ value of your stock, not the ‘retail’ value. In other words, how much it would cost you to replace your stock.
Be aware of any seasonal adjustments you may need to make to your ‘sum insured’ amount. For example, you may have an increased stock of alcohol in busy periods such as Christmas and Easter, and you may need to adjust the ‘maximum value at risk’ to ensure you’re not underinsured.
Some insurance providers automatically include seasonal variations, so check your policy details to see if you’re covered.
How do I get started?
All you need to do is start a quote with us and we'll help you find the most competitive prices, for the different types of insurance you may need for your restaurant.
What do I need to get a quote?
We’ll need some details about your business, including:
- business name, address and postcode
- how long you’ve been trading
- forecasted turnover for the next 12 months
- how many employees you have
- your claims history
- the type of cover you want
Once you’ve completed your quote, we’ll show you a list of quotes to compare.
From the Business team
“Dealing with food in a fast-paced environment means that every day, staff and customers are exposed to possible risks. As a restauranteur you’ll want to ensure you have the right insurance in place should an accident happen.
“Consider exactly what risks your restaurant faces and which insurance protection you’ll need. This will help you build a business insurance policy that works for you.”
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