Understanding restaurant insurance in less time than it takes to boil an egg
Timer ready? Read our simple five-minute guide to everything you need to know about restaurant insurance so you don’t end up getting egg on your face.
What insurance does my restaurant need?
Not all restaurants are the same, so there is no hard and fast answer to this question. Instead, you need to look at all the insurance options available and tailor-make your policy to make sure you’re covered for everything you might need but not paying out for cover you don’t require. Here are some of the main options to consider.
1) Public liability insurance
Hot food, spilt drinks, contamination, and bacteria. A restaurant can be a dangerous place, so make sure you’re covered for any injury to people or damage to property with comprehensive public liability insurance. If your public liability insurance isn’t up to scratch you could be footing the bill for legal fees and compensation if negligence results in food poisoning, customers having an allergic reaction to an ingredient that wasn’t highlighted on the menu or from a whole range of other accidents, spills, slips and trips that could take place on your premises.
Not all public liability insurance policies pay out for every eventuality, so for peace of mind make sure you consider what you require and discuss your needs fully with your insurer.
2) Employer’s liability insurance
Even if you only employ part-time or subcontracted staff, employer’s liability insurance is an essential. Without it you could be fined, and if something does happen, you’ll face hefty legal fees and compensation payouts. This insurance can also help protect your business from claims of unfair dismissal.
3) Contents insurance
Don’t be tempted to underestimate here to reduce your premiums. If you’re not covered for everything you lose, you could risk your business being unable to continue trading. Think about things like equipment, stock, and furnishings such as chairs and tables. Also, consider things that could go wrong that are specific to your restaurant business, such as loss of chilled or frozen stock if your fridge or freezer breaks down or damage to stock or furnishings caused by a large drinks spillage.
4) Buildings insurance
If you own the building that your restaurant is in you’ll need special commercial buildings insurance.
5) Business interruption cover
If you are unable to trade for a period of time it can have a disastrous effect, especially if your restaurant business is seasonal. Help protect your business by opting for insurance cover from a broker that can offer a 1-2-1 service to get claims processed quickly and with the minimal fuss. You can also consider taking out business interruption insurance, which aims to put your business back in the same position it was in before trading stopped.
6) Personal accident or key personnel cover
Staff can be one of your biggest outgoings, accounting for a third or more of your expenses. Employees such as your head chef may be key to your businesses success, or perhaps it’s you that is holding it all together. Protect your business if you are unable to work with personal accident cover and consider key personnel cover for peace of mind if you lose an important staff member unexpectedly.
7) Money cover
Depending on the size or price-point of your restaurant, you could be handling thousands of pounds in cash every evening. That makes you a major target for thieves. Money cover protects larger quantities of cash whilst it’s on site and in transit to be banked.
Want to concentrate on the cooking?
With administrative tasks taking up an estimated 33 hours a month for small businesses like restaurants according to The Caterer, you’d be forgiven for just reaching for the renewal quote. But that could cost you more in the long run – either by not providing you with adequate restaurant insurance cover or by paying over the odds for your policy.
Our expert restaurant insurance team can help take the hard work out of insurance. We have over 20 years experience and a strong network of contacts that enable us to efficiently tailor-make the best cover for your individual needs at the best price possible.