Restaurant insurance

Running a restaurant comes with risks, and restaurant insurance could provide the cover you need to protect your staff, customers and your livelihood.

This insurance can protect your business in the event of theft, equipment damage, employee illness, and claims from the public. It could even cover loss of income if you had to close temporarily. 

You may find you need multiple types of cover, including public liability, business contents, employers’ liability, business interruption, and buildings insurance. We’ll run through them all. 

It’s important to be prepared for any setback that could affect the smooth running of your restaurant business. 

Your restaurant may have food, furniture and expensive specialist kitchen equipment that’ll need protecting against theft and damage. Any disruption to your business can be damaging too, as your customers rely on your service and availability.      You’ll also need to think about what cover could protect you against claims from members of the public. What if a customer got food poisoning or slipped on your floor? 

And if you employ staff, you’re legally required to have employers’ liability insurance for any employee who isn’t an immediate family member.  

When it comes to accidents in the workplace, hospitality tops the list. Health and Safety Executive statistics reveal 2,818 self-reported injuries per 100,000 workers in the accommodation and food service sector in 2023/2024.

Here are some of the most common types of cover you might want to consider including in your business insurance policy.

Public liability insurance

If, for example, a member of the public becomes ill because of the food you’ve provided, or slips and falls on your premises, you could claim on your insurance to cover compensation due to them, or legal costs if they take you to court.

Business contents insurance

This typically provides cover for your stock if there is a break-in or fire. It can also cover furniture, fittings, tills, kitchen equipment and possibly freezer contents, too. There’s also the option of getting cover for any cash on the premises.

Employers’ liability insurance

This could cover you if one of your employees becomes ill or is injured as a result of working for you.

If you employ one or more people or are a limited company with multiple directors, it’s a legal requirement to have cover. If you’re not a limited company, it’s not a legal requirement to have employers’ liability insurance if the employees are immediate family members.

However, if a policy is in place, it would still cover immediate family members working for you.

Business interruption insurance

This insurance can help cover loss of income if trading is interrupted and if you have to close your restaurant for a period of time.

If you buy a new business interruption policy, be aware that it’s unlikely to cover claims against events that are already taking place.

Buildings insurance

If you own the building in which your restaurant is located, it can make sense to take out commercial buildings insurance. This covers the cost of repairing damage to the structure of your building or rebuilding it if necessary.  

If you rent the space, your landlord is responsible for buildings insurance. 

Here are some common scenarios in which the right type of insurance could help protect you and your restaurant:

• An employee injures themselves – if a chef slipped on a damp floor and burnt their hand on one of the hobs, employers’ liability insurance could cover the medical costs, compensation and legal fees if they claimed against you 

• A customer is injured – if a waiter spilled soup and scalded a customer, public liability insurance could cover damage and injury costs 

• A customer cuts their lip on a plastic cup – product liability insurance could protect you against an injury claim because of a defective product you supplied 

• Your restaurant is damaged due to fire or flood – business contents insurance could cover the cost of repairing or replacing equipment and furniture 

• You have to close the restaurant for repairs – business interruption insurance could help protect you against loss of earnings 

• A kitchen fryer is stolen or destroyed in a fire – new for old cover could provide an exact replacement

• You lose your licence to sell alcohol – loss of alcohol licence cover could reimburse you for loss of revenue and product value. But this only applies where the cause of loss of licence was beyond your control – not due to misconduct.

As a business owner, you have a duty of care to all your staff and customers to keep them as safe as possible. That’s why it’s important to follow strict hygiene and safety practices.

To help protect your staff and customers, you’ll need to:

• Carry out regular risk assessments

• Ensure your staff have adequate food hygiene training

• Comply with food allergen and labelling laws

• Have appropriate health and safety procedures in place

• Provide staff with protective equipment, clothing and footwear

• Train employees in safe working practices including the safe use of knives.

You can find out more about catering and hospitality risk assessments and safety procedures on the HSE website. 

To compare quotes with us and our partner Simply Business, you’ll need to give us 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.

Whether you own a takeaway, diner, curry house or bistro, comparing with us couldn’t be easier. Get a quote in just a few minutes to see if you can save.

For expert help, call our trusted partners at Simply Business on 0333 016 5956**