Frequently asked restaurant insurance questions
Whether you're a small family-run bistro seating 30 people or a company with a chain of 30 restaurants, similar problems can arise and put financial pressure on your business. With our decades of experience working alongside those in the food industry, we understand how vital robust insurance cover is for a restaurant.
With so many different aspects to consider, we've answered the questions most commonly put to us by restauranteurs. This information will help you feel confident when it comes to securing and understanding your restaurant insurance quote.
Do I need restaurant insurance?
Yes, it's a great idea to opt for restaurant insurance over a general business policy. A dedicated restaurant insurance policy is by far the best way to bring together all the cover your eatery requires.
If you're a very small restaurant, rather than simply taking out business and public liability insurance, you will achieve a far more comprehensive level of cover if you opt for restaurant business insurance. After all, small restaurants can be hit by the same problems as larger ones.
If you own multiple restaurants, you can usually place them all under one restaurant business insurance policy. This will streamline your paperwork and make it far easier to manage your insurance interests.
Why do I need public and product liability cover?
Public liability protects you should a customer hurt themselves or damage their property whilst at your restaurant. Meanwhile, crucially for a food business, product liability is used to deal with claims made if the food or drink you serve causes illness or injury.
Product liability also covers inedible items that you provide your customers, such as take-home food packaging and cups, or even the soaps and sanitisers provided in your facilities.
What cover do I need for my staff?
Employers' liability cover is a legal requirement in the UK if you hire people within your business. It comes into play should a staff member claim for injury or illness against the restaurant. This type of cover becomes incredibly important in a busy kitchen, with super-hot surfaces, sharp knives, and dangerous equipment!
In a restaurant, there are often key members of staff who are pivotal to the business's success, such as a head chef or a sommelier. You may wish to take out key personnel cover; if they fall ill or leave unexpectedly, you will be cushioned against any directly associated financial losses.
You might benefit from personal accident cover if your physical presence at the restaurant is integral to the business. Some restaurants choose to include directors' insurance within their policy, which deals with claims made against the company directors.
What type of business cover is included in restaurant insurance?
A good restaurant insurance policy will include business contents and business interruption cover as standard. Business contents insurance protects things like furniture and fittings, kitchen equipment and your stock against theft and damage. Business interruption cover offers you financial protection should your restaurant unexpectedly have to cease trading. In light of the pandemic, business owners have become all too aware of the importance of this cover.
What additional cover can I add to my restaurant insurance?
If you own your premises, adding building cover to your policy is crucial as it will ensure you can repair or even rebuild the restaurant should it be damaged. If you deliver food, make your own catering runs or rely heavily on a business vehicle for your staffing, adding vehicle cover is also a great idea.
For many restaurants, wine and spirit sales make a notable contribution to the profits. If this is the case for you, consider taking out loss of license cover to protect you should your alcohol license be revoked.
At Park Insurance, we're passionate about protecting the financial interests of restauranteurs, and with decades of experience under our belt, you're in the safest hands. If you'd like to find out how we can help protect your restaurant, get in touch with one of our friendly, knowledgeable insurance specialists today.