In this post we will outline the numerous factors that can affect the amount you pay for restaurant insurance in the UK, to give you a general idea of how much you might pay for your policy.
What is the Average Cost of Restaurant Insurance in the UK?
So many factors can affect the cost of restaurant insurance that, rather than considering ballpark figures, it is much better to get a quote of your own.
Depending on your unique situation, you could pay as little as £500 a year for your restaurant insurance. However, many restaurants will pay much more for their cover, potentially up to £3,500 to £4,000 a year.
What Factors Affect the Cost of Restaurant Insurance?
- Your location – Some areas have higher crime rates than others, which can affect your premiums. You may also pay higher premiums if your restaurant is located on a floodplain.
- Your size – The bigger your restaurant, then the more customers you will serve, and the more you will pay for cover. Your annual turnover can also affect the price you pay for your restaurant insurance.
- The cover you get – When taking out restaurant insurance, you may be able to choose exactly what sort of cover you get. The broader the cover you choose, the more you will pay.
- The liability you choose – When taking out your policy, you may also be able to specify the amount of cover you get. You can set a cash value for the maximum amount of buildings cover you receive, for example. This too can affect the price of your policy.
What Does Restaurant Insurance Cover?
A restaurant insurance policy can provide the following core areas of cover:
- Public liability insurance – To cover your customers and other members of the public for any accidents, illnesses, or injuries that may take place while they are on your premises.
- Employer’s liability insurance – To provide the same sort of cover, but for your staff. Please note that, if you employ any staff, you have a legal duty to get employer’s liability insurance.
- Buildings insurance – To cover your restaurant premises against damage from fire, flood, vandalism, and break-ins.
- Contents insurance – To cover your stock, your equipment, and any fixtures, fittings, and furnishings for loss, theft, or damage.
- Product liability insurance – This can cover cases of food poisoning or other illnesses that may arise from food or drink you serve on your premises.
How To Reduce The Cost Of Your Restaurant Insurance
- Staff training – Regular staff training can reduce accidents, which could help to lower your premiums.
- Safety and security features – Install locks, CCTV, and alarms to help prevent theft. Smoke alarms and sprinklers can help prevent the spread of fires.
- Choose your cover carefully – If you get less comprehensive cover, or specify lower cover limits, then you can save money on the price of your premium. Take care though, as if you ever need to make a claim on your policy, limited cover could leave you out of pocket.
- Compare quotes – Not all insurers will charge the same for cover. Get a few quotes for your restaurant insurance, but do not be tempted to simply choose the cheapest cover. The most important thing is that you get the cover you need.
- Use an insurance broker – An insurance broker will take the time to understand your restaurant and your insurance requirements. They can then help you get cover that meets all of your needs, including your budget.
Get Specialist Restaurant Insurance From James Hallam
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your restaurant.
We can help you get the cover you need at a truly competitive price. We will ensure that there are no risky gaps in your cover, and that you are not paying excessively for cover you may never need.
Learn more about our specialist insurance services here.