Restaurant insurance for your business

restaurant insurance

The smell of food wafting through the air, chit chatter and hungry eyes hoping that their food comes next – a restaurant certainly is an exciting place to be but with great food comes great responsibility.

If you own a restaurant, it’s extremely likely that you have employees and members of the public frequenting your establishment on a daily basis, therefore you may be considering insurance to protect your customers, employees, premises, content, stock and more.

The level of cover required can vary from one restaurant to another and for some restaurants, higher levels of cover may be necessary. This guide aims to highlight the different types of cover that may be applicable to your business and outline some of the key reasons for taking them out.

The Liabilities:

Employers’ Liability Insurance

Chef’s, Sioux chefs, wait staff, cleaners or even a maître d’; under the Employers Liability (Compulsory Insurance) Act 1969, this insurance is mandatory if you employ people to work in or on behalf of your restaurant, including volunteers and work experience placements. One of the only exceptions is if your business is unincorporated and you only employ close family members. You can read more about this in our Employers’ Liability is a legal requirements blog.

It is worth noting that as this insurance is a legal requirement, there are consequences to not having the right level of cover in place; including a hefty £2,500 daily fine for every day you trade without cover.

A kitchen can be a dangerous place; hot surfaces, sharp knives and slippery floors; therefore it is essential to protect your colleagues and yourself financially in the event of workplace injuries and accidents.

Employers liability cannot be sold as a standalone product; it must be purchased alongside Public Liability insurance.

You can find out more about employer’s liability cover and get a quotation here.

Public Liability Insurance

If customers frequent your premises on a regular basis then it would be understandable for you to want to financially protect yourself in case an accident or incident occurs that is beyond your control.

Public liability insurance is not mandatory for most businesses; however, if you have employees and legally require employers’ liability insurance then you will also need to take out Public liability insurance cover as the former cannot be purchased as a standalone product.

Common risks for a restaurant including food poisoning, burns and slips, trips & falls, can have extremely serious consequences for your customers; therefore you need to make sure you’re covered for any potential litigation.

Find out more about public liability cover here.

Further coverage:

Business Interruption Cover

This can be included within a restaurant or retail insurance package. Essentially it could cover you for loss of earnings and other included expenses in the event that your restaurant suffers a fire or other insured risk which forces you to close down for a period of time. If you cause damage to a neighbouring building it could also potentially cover their relocation or loss of earnings.

You may find it beneficial to discuss your business interruption needs with a broker or insurer to understand and make an informed decision on the level of cover you require.

Buildings Insurance

This is an important insurance, especially if you own the premises from which you operate your business. It can cover you for risks including fire, flooding, storm damage, vandalism and theft.


Money Cover

If you keep money in your restaurant, this insurance could cover the financial loss if the money you hold were to be stolen. It is worthwhile mentioning that cheques and items such as stamps, gift vouchers, tokens and postal orders can also be treated as money.

Contents Insurance

This cover provides protection against the loss, damage or theft of your machinery, stock, computer records, documents, fixtures and fittings, and many similar items. As a restaurant owner this could include spoiled food, damage to your chairs, tables and other important kitchen fittings.

If something were to happen or go wrong with any one of these items, the potential cost to your business could result in a loss of earnings to your business, especially if you had to close.

The extent of cover provided for contents can vary. Cover can be provided on an all risks basis, or on a fire or perils basis only. This cover could also prove handy if you were to become the victim of theft, replacing items and covering the cost of new keys & locks.

Remember, the levels of cover required from one restaurant to another can vary significantly, and for some restaurants higher levels of cover are recommended.

There are a number of additional products available to you which if you decide, could be included as part of your insurance cover.  


As an insurance broker are able to put together a retail package based on your individual requirements.

To discuss in more detail, please call us on 08081686868.

Alternatively, you can get a quick restaurant insurance quote online here.