Looking for Restaurant Insurance?
It’s a smart idea to protect yourself and your business with restaurant insurance in case of unexpected loss, damage or accident. There are a few different types that you might need to look into to make sure you have the right level of cover.
Whether you’re a fine dining establishment or you serve fast food, you’ll need to think about covering your restaurant, employees, customers and even furniture with restaurant insurance. You’ll know better than anyone of the daily risks of running a business in the catering industry, so it’s a good idea to consider individual, yet linked restaurant insurance policies.
What type of restaurant insurance policies are available?
Unfortunately, there’s no such thing as a blanket restaurant insurance policy as there are so many different types of restaurants, from buffet to bistro, chippy to cordon bleu. Not only does the type, size and location have a factor in the type of insurance policy that you should be looking at, but you’ll also need to take into account your employees, customers and actual premises to.
In such a high-risk industry there are many things that can go wrong even with the strictest health, safety and food procedures in place. So, what kind of restaurant insurance policies should you be looking at?
Potentially the most important form of restaurant insurance as it is a legal requirement. Employer’s liability insurance means that you’re protected if your employees are injured or become ill while working for you.
Not only does your stock need to be covered in case of break-in or fire, but there are all sorts of things that can be protected such as kitchen equipment, tills, fittings and furniture.
Whether a customer slips, falls or is taken ill on your premises, they may want to claim for compensation. This type of restaurant insurance will help to cover this, as well as any legal costs if it escalates to court.
Any downtime or interruption to trade is going to have implications on your finances, so this can help to keep things going if you’ve lost income due to an unexpected restaurant closure.
If you’re lucky enough to own the building that houses your restaurant then buildings insurance is a smart idea. Whether you need repairs or even rebuilding, this will help to cover the costs.
Whether you’ve lost your license to sell alcohol completely, or are even just facing a suspension, it can have a huge impact on your takings. This insurance will help to subsidise your loss of earnings and even reimburse some of the business value if the lost license causes it to be reduced. There are hefty exemptions to this type of restaurant insurance, so be sure to thoroughly check the small print before you sign.
Reducing your monthly restaurant insurance premiums
There are a few measures that you can take that will not only help to lower premiums, but they could also end up improving the safety and quality of your restaurant too. Here are our top tips for keeping restaurant insurance premiums as low as possible.
Extra training on the importance of tackling spills, being vigilant and ensuring a clean and uncluttered back of house area will all help to minimise the risks faced every day.
Investing in condenser canopies, sprinklers and ventilation will help to reduce the risk of fire and fire damage.
Take measures to ensure there’s no build-up of oil and grease that could be a potential danger with all the naked flames and gas ovens in your kitchen.
Make sure you’re constantly reviewing the way your business is operating to ensure that if there are any changes or new challenges that could pose a risk, you’ve got a plan in place.
It probably goes without saying, but making sure you’re up-to-date with regulations and an annual business MOT will help to spot any pitfalls that might affect your premiums or cause harm to employees, customers or your premises.
Restaurant Insurance – Useful FAQs
Make sure when providing an evaluation for insurers that you’re giving them the cost price of your stock rather than the retail price. This will be a more accurate figure and if an insurer finds out that you’ve inflated the value of your stock then they may deny a claim.
Not necessarily, if you’ve not started trading and haven’t got your license you can begin the search and purchase of a restaurant insurance policy. However, once you’ve opened your doors to customers this all changes. If you haven’t organised your trading licence by this time then your policy will most likely be void and any claims will be denied.
No. Covering your business in case your customers become ill or injured isn’t required by law (unlike employer’s liability insurance), however it’s worth looking into as it will help you to cover the costs of any compensation. claims if a customer takes legal action against you.
If your front of house glass is damaged for any reason then it can be expensive and a headache to replace. Some insurers offer policy extensions to cover glass frontage so you can get it repaired quickly without too much impact on trading. Ask your insurer if this is something they offer.