Restaurant and Hospitality Insurance
If you run your own café, bar or restaurant, business insurance is not only key to minimising risks, it’s often compulsory.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Restaurant and hospitality insurance can encompass a broad range of protections, from public liability cover if someone becomes ill or injured in your venue, to payouts if any items kept at the premises are lost or stolen. There is a lot that can go wrong, but we've made it easier to find cover for the risks you face — you can get a personalised quote below.
Compare insurance options for restaurants
Key risks when managing a restaurant
Opening a restaurant can be a highly rewarding experience, but it’s not without its challenges. It pays to be aware of the risks so that you can take the proper precautions. Here are some of the risks you might face.
- Cooking Fires. A fire in the kitchen can cause significant loss of life and property. Make sure your kitchen is up to code, keep the exhaust ducts clean and have an evacuation plan in place for employees and customers.
- Food poisoning. Food poisoning can lead to lawsuits and negative publicity for your restaurant. Minimise the chances of this occurring by storing food properly, using separate cutting boards for raw meat and thoroughly washing fruits and vegetables.
- Identity theft. Restaurants can be a revolving door for employees. Rogue employees could wreak havoc if they got their hands on another employee’s records or a customer’s credit card details. Make sure you have a secure document management system in place.
- Slips and falls. The hustle and bustle of a busy restaurant create the perfect atmosphere for slips and falls. Keep your floors well-maintained by mopping regularly and by promptly fixing leaks, cracks and loose tiles.
- Cuts and burns. The kitchen environment lends itself to cuts and burns. Make sure you have a first-aid kit on hand and that you keep it regularly stocked. Protect employees by equipping them with the correct personal protective equipment.
- Theft and vandalism. Small businesses are prime targets for thieves and vandals. You can protect your business by installing a security system and making it clear that you don’t keep cash on your premises overnight.
What types of insurance do restaurants and hospitality businesses need?
Because restaurants and other hospitality businesses have many moving parts, there is no one-size-fits-all insurance policy. In fact, there are dozens of overlapping policy inclusions to choose from.
It is important that you familiarise yourself with all of your options to ensure a small setback doesn’t turn into a serious threat. However, there is no need to be overwhelmed; most insurers will work with you to customize a policy that meets your exact business needs. Just make sure they explain any exclusions and limitations that apply to your policy.
To get you started in your search, here is a list of the policy types you are likely to encounter in your search results. They can be categorized into those that are required by law, and those that are optional.
Insurance products that are required by law
- Workers compensation. Protects you and your employees if you are injured on the job.
- Public liability. Protects your customers if they are injured or become ill in your restaurant.
- Third-party commercial motor insurance. This is only mandatory if your business uses a vehicle, such as a food delivery truck. It protects third parties from damages caused by your vehicles.
Optional insurance products
- Theft of contents and stock. Covers you for the theft of any contents or stock within your business. If you transport these goods, you’ll need the optional “goods in transit” policy option.
- Theft or damage to money. Covers you for any loss of cash due to theft or damage (such as a fire originating in the kitchen).
- Building and contents insurance. Covers you for damage to fixtures, fittings contents and stock resulting from a number of unexpected situations including fire, explosion, water damage and vandalism.
- Machinery breakdown. Covers you for unexpected equipment breakdown. If your freezer breaks down, it will cover the cost of the freezer’s repair or replacement, but not for any spoiled food that results.
- Management liability. Covers you and the company from liability due to business mismanagement.
- Deterioration of stock. Covers you for the loss of any stock that has spoiled or deteriorated as a result of equipment malfunction.
- Portable and valuable items. Covers loss or damage to valuable items that you carry with you.
- Business interruption. Covers you for loss of revenue when your business is interrupted by an insured event.
- Tax probe. Covers fees you incur if an official authority audits your business.
Receive quotes from these direct insurance brands
Picture: Luca Bravo - Unsplash
More guides on Finder
New international travel rules: Quarantine, visas, airlines and more [UPDATED]
When do flights resume? What are the quarantine rules? Can I get travel insurance? Expert answers to all your questions.
How do you get rich? The answer is not a lotto ticket
Glen James of My Millennial Money shares his secrets to saving and growing your money.
ASOS discount codes 2021 | Up to 80% off: Final Clearance
Here you can find active ASOS codes of up to 80% off that can be used for discounts on your total order or for discounted shipping rates.
Scared of buying bitcoin? Try an ETF instead
Learn how investors can gain exposure to Bitcoin without owning the asset.
Shares vs commercial property: Are you missing out on serious cash flow?
Both shares and commercial property can deliver huge returns – but both have their risks. Here's how to decide which suits you best.
Returning to work? Expert tips to deal with your dog’s separation anxiety
Expert tips on how to deal with your dog's separation anxiety as life returns to normal.
9 ways to save $2,800+ on your bills
An investment of a few hours could save you thousands of dollars – here's how to bring down your household bills.
Two Broke Chicks Podcast Episode #102: The Passion Project with Sarah Davidson
Sal and Al chat to Seize The Yay podcast host, author and lawyer-turned-entrepreneur Sarah Davidson about turning your passion project into a full-time gig.
Coronavirus: Will income protection cover me?
Learn how income protection can help – whether you’ve already got coverage or you’re thinking about buying it.
3 dental insurance deals to put a dent in your post-lockdown dentist trip
Here's how you can unlock no-waiting-period dental with ahm, Peoplecare and HIF.
Ask an Expert