Restaurant insurance is an umbrella term referring to a number of policies combined into one insurance package that would be suitable for a restaurant. There are many different policies and forms of cover that could be included in a restaurant’s insurance package - some may be important to your particular business, and others may not be.
The selection of policies that you choose to include in your restaurant’s insurance package will be influenced by the risks they protect against, and how relevant those risks are to your restaurant. However, you may want to consider the following commonly included policies:
- Buildings and contents insurance
Buildings insurance protects the physical bricks and mortar of your restaurant premises. It can provide financial reimbursement for damage to your building’s permanent fixtures, such as fitted kitchen units, and external features like signage.
Contents insurance protects against theft and damage to your restaurant’s contents. This cover could include equipment such as your oven or freezer, and could also be extended to include cover for cash on premises, stock, and goods in transit, if required.
- Employers’ liability insurance
If you employ staff, you will be legally required to include employers’ liability in your restaurant insurance package. There are some exceptions where employers’ liability is not mandatory, such as if you only employ close family members.
- Public liability insurance
Every day, many people pass through a restaurant, and because of this, public liability insurance is quite commonly included in restaurant insurance packages. If your business is deemed responsible for causing injury to a member of the public, or damage to their property, then public liability insurance could help with payment of legal fees and compensation.
- Product liability insurance
Product liability insurance can provide cover if your products are responsible for causing damage, illness or injury. This policy can be particularly beneficial to those in the catering & hospitality industries, as it includes protection in the event that your restaurant is held accountable for causing food poisoning.
- Business interruption insurance
Business interruption insurance provides protection in the event that insured damage leaves your business unable to operate normally. For example, if your restaurant suffers a fire and is unable to open for a period, business interruption insurance can compensate you for revenue lost during this time. It could also pay your business’s ongoing overheads, if necessary.