If you are running a restaurant, or a chain or restaurants, then you no doubt know that you need insurance to cover your business for the range of risks you will face.
Yet there are many different insurance products out there, and not all of them are relevant for restaurants. So, how can you ensure you get the cover you need at the best possible price?
In this post we will explore some of the most important insurance products for restaurants, cafés, pubs, and other businesses that prepare and serve food.
Running a catering van? Take a look at our guide to insurance requirements for mobile caterers.
Types of Insurance for Restaurants
Public Liability Insurance
If a member of the public gets injured on your restaurant premises, public liability insurance can cover any compensation they may be due, along with any associated legal fees. This cover extends to your customers, as well as any other members of the public who may visit your premises, including contractors, delivery drivers, and health inspectors.
Public liability insurance can also cover any loss or damage to customers’ property while they are on your premises – such as if one of your waiters spills a drink on a customer’s clothing.
Product Liability Insurance
Product liability insurance can cover for claims related to the food and drink you prepare and serve on your premises. For example, if a customer has an allergic reaction to your food, or if they fall ill after eating at your restaurant, product liability insurance can cover any compensation they may be due, along with any associated legal fees.
Employer’s Liability Insurance
This is similar to public liability insurance, though rather than providing cover for claims made by members of the public, it covers you for claims made by your employers for any illnesses or injuries they sustain while working at your restaurant.
In UK law, there is a legal requirement to get adequate employer’s liability insurance should you employ any staff.
Contents and Stock Insurance
Business contents insurance can cover your restaurants furniture and equipment if they are lost or damaged as a result of fire, theft, floods, or other incidents. Contents insurance can provide cover for repairs or replacements, as necessary.
Stock insurance can cover your perishable stock for similar losses. But it can also cover for other kinds of situations, such as if your frozen stock goes bad following a power cut to your freezer.
Business Buildings Insurance
This can cover your restaurant premises for necessary repairs following fires, floods, storms, or break-ins.
Business Interruption Insurance
If you are forced to temporarily close your restaurant following an insured event, such as a fire or a flood, business interruption insurance can supplement any lost income, allowing you to stay afloat during your downtime.
All claims are different and we would recommend that you read through your policy documents to ensure you are familiar with the details of the cover you’ve been offered.
How Much is Restaurant Insurance?
The amount you pay for your restaurant insurance will depend on a number of factors, including but not restricted to the following:
- The level of cover you choose. The more extensive your cover, the higher your premiums will be.
- Your restaurant’s annual turnover.
- The number of staff you employ. Some insurers may ask for additional information about your employees, including their ages, so as to determine their respective risk profiles.
- The rebuild costs of your restaurant premises following a total loss. Insurers will also consider the value of your restaurant’s content and stock.
- Your physical location. If your restaurant is located in an inner city area, there may be an increased risk of burglary. Also, any restaurants located on flood plains will likely have to pay more for buildings cover.
- The construction of the premises.
We Can Help You Get All The Cover You Need at a Fair Price
James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers.
We know that no two restaurants are quite the same. So, we will take the time to get to know you, your business, and your customers. This will allow us to design a restaurant insurance package that truly meets your needs at a competitive price.