Restaurant Insurance
Compare restaurant insurance quotes from a panel of UK business insurers through one short form.
- One short form, then live quotes to compare online
- Covers for cafes, coffee shops and takeaways too
- Employers' liability included where you have staff
Restaurant Insurance in short
Restaurant insurance is a tailored policy made up of the covers a restaurant needs to protect itself against unexpected events, typically including damage, theft, loss of earnings and injury to staff or the public. Fill in one short form and you can compare live quotes online from a panel of UK business insurers. The form also suits cafes, coffee shops and takeaway businesses.
Key facts
- Employers' liability insurance is required by law if you employ anyone, including volunteers, students and part-time or full-time staff.
- The minimum legal level of employers' liability cover is £5 million.
- Fines for not having valid employers' liability insurance can be up to £2,500 a day, and failing to display the certificate can cost up to £1,000.
- Premiums can be paid annually or monthly, but monthly payments cost more because interest is added.
- Common policy exclusions include the excess, clauses around deep fat fryer equipment and stock storage warranties.
Michael's take
Having spent more than 20 years in finance and insurance, the thing I would check first on any restaurant policy is employers' liability, because the law is wider than most owners realise: volunteers and students count, and the fines run per day. After that, read the exclusions properly, as a deep fat fryer clause or a stock storage warranty can undo a claim you assumed was covered. Compare a few quotes, pay annually if you can, and make sure the covers match how your kitchen actually runs.
What is restaurant insurance?
Restaurant insurance is a tailored policy consisting of a range of covers to help protect a restaurant against unexpected events when they occur. A typical policy may include cover for damage to the premises, theft, loss of earnings and injury to employees or members of the public.
Every restaurant is different, from independent family-run operations to national food chains, so the covers you choose should reflect how your business actually operates: your premises, stock, equipment, staff and the customers who come through the door.
Who needs restaurant insurance?
Anyone running a restaurant, cafe, coffee shop or takeaway should consider it, and if you employ anyone at all, part of it is a legal requirement. Running a restaurant means dealing with stock, premises, customers, bookings, menu changes, equipment and staff, and each of those brings a risk that a policy can cover.
The quote form includes a dropdown to select your type of business, which covers cafes, coffee shops and takeaway businesses as well as restaurants.
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One short form, then live quotes to compare online.
What does restaurant insurance cover?
A restaurant policy is built from several covers, and you choose the ones that fit your business.
- Public liability protects you if a customer or member of the public claims against you, for example after a slip or trip in your restaurant, or ill health caused by food or drink. Without it you could face substantial compensation payments.
- Employers' liability covers you if an employee is hurt or falls ill because of employer negligence. It is required by law if you employ anyone.
- Buildings insurance covers damage to the structure of your restaurant, including the roof, walls, ceilings, floors, doors and windows, as well as underground pipes and cables.
- Business interruption / loss of income replaces revenue lost if you cannot open for a while after a fire or other incident, while your overheads carry on.
- Products liability protects you against damage and injury caused by the products you have sold.
- Accidental damage covers one-off accidents at the premises.
- Loss of licence covers financial losses if you lose an alcohol or music licence and cannot trade as normal.
What is not covered by restaurant insurance?
Exclusions vary by insurer, but there are some you are likely to see in a restaurant policy.
- The policy excess, which you pay towards any claim
- Clauses around deep fat fryer equipment
- A warranty requiring all stock to be kept on pallets or racking a certain height from the ground
These show why it is important to read through your policy documents, so you know what conditions apply before you need to claim. Failing to keep on top of health and safety regulations can also invalidate your cover.
Is employers' liability insurance a legal requirement for restaurants?
Yes. If you employ anyone, employers' liability insurance is required by law, and the minimum legal level of cover is £5 million. The requirement applies to anyone involved in helping your restaurant to function: you do not need to be paying the person, and they do not need a written contract. Volunteers, students and part-time or full-time staff all count.
The penalties for getting this wrong are significant.
| Requirement | Potential fine |
|---|---|
| Minimum employers' liability cover | £5 million |
| Not holding valid employers' liability insurance | Up to £2,500 a day |
| Not displaying your certificate | Up to £1,000 |
Depending on your restaurant, more than the minimum may be needed, so check the level of cover matches your business.
How much does restaurant insurance cost?
There is no single price, because every policy is built around the individual restaurant: the covers you include, the size of your premises, your stock and equipment, and how many people you employ all shape the premium. The quickest way to find out what you would pay is to compare quotes from several insurers.
You can choose to pay annually or monthly. Monthly premiums work out more expensive because interest is added, so paying annually costs less overall if you are able to.
How do I compare restaurant insurance quotes?
Complete one short form with details of your business and you can compare live quotes online from a panel of UK business insurers. Select your type of business from the dropdown, whether that is a restaurant, cafe, coffee shop or takeaway, and choose the covers you want to include. Quotes are no-obligation, so you only buy if you find a policy that suits you.
If you have vehicles, note that these are usually insured separately. A business with several vehicles may want to look at a fleet policy, while a single vehicle with several drivers can be insured with a multi-driver van policy.
Frequently asked questions
Is restaurant insurance suitable for cafes?
Yes. The quote form includes a dropdown to select the type of business you run, which includes cafes, coffee shops and takeaway businesses as well as restaurants.
Can I pay for restaurant insurance monthly?
Yes, policyholders can pay annually or monthly. Monthly premiums are more expensive because interest is added to the payments.
How do I know what cover to include in my restaurant policy?
Think about the risks your restaurant faces: public liability for customers, employers' liability if you have staff, buildings cover for the premises, loss of income if you cannot open, and loss of licence if you depend on an alcohol or music licence. When you compare quotes you can choose the covers you need, and you can speak to the insurer directly about your specific requirements before you buy.
Do I need employers' liability insurance for volunteers or part-time staff?
Yes. Employers' liability insurance is required by law for anyone involved in helping your restaurant to function, including volunteers, students and part-time or full-time staff. They do not need to be paid or to have a written contract for the requirement to apply.
What happens if I do not have employers' liability insurance?
You risk a fine of up to £2,500 a day for not holding valid employers' liability insurance, and a further fine of up to £1,000 if you fail to display your certificate.
Does restaurant insurance cover loss of income?
Business interruption, also called loss of income cover, can be included in your policy. It covers the revenue you lose if you cannot open for a while after a fire or other incident, while your overheads continue.
Can I include vehicles on my restaurant insurance policy?
Vehicles are normally insured separately. If you have several vehicles, a fleet policy may suit you, and if you have one vehicle used by several people, a multi-driver van policy is a simple option.
Business Insurance for your business
Other pages that may fit your business, and guides on this topic.
Written by Michael Foote, Insurance & Finance Expert
Founder of Quote Goat, with over 20 years' experience in finance and insurance. He has appeared on TV and in Forbes, The Telegraph and The Metro.
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Quote Goat provides access to a business insurance comparison service operated by Seopa Ltd. This page is general information, not advice. Always check the policy documents to make sure the cover meets your needs.