1 June 2015

The Complete Guide to Restaurant Insurance

From boutique gastropubs to nationwide franchises, all restaurateurs should cover their investments with a comprehensive insurance policy. Of course, with all the variables and add ons, taking out restaurant insurance can sometimes seem more complicated than it actually is. To clear up any confusion we’ve put together this guide covering everything you need to know about finding the right policy for you.

Public liability 

Serving up food and drink to the public goes hand in hand with the risk of public liability claims. Overall, this type of insurance will cover claims from any third party who suffers loss, damage, injury or death due to negligence caused by activities carried out in your restaurant. Food poisoning is particularly concerning, as are slips, trips and falls. 


Due to the constant use of hot plates, ovens and electrical appliances fire is a very real risk for restaurants. As such, fire insurance should be prioritised at all times. 

Material damage insurance 

When you put a huge amount of time and effort into your décor it can be devastating to see it broken or destroyed. Material damage insurance covers the contents of your restaurant, including fixtures, fittings and furniture. 

Business interruption 

Would your restaurant be able to survive if you had to unexpectedly shut up shop? If the answer is yes, business interruption insurance should be a top priority. Four out of five businesses go bankrupt after major interruptions which means that cover should be of paramount importance.

Glass and sanitary ware cover

Many restaurateurs overlook the costs of replacing things such as toilets and windows. This can be extremely expensive which means that glass and sanitary ware cover is advisable for any business wanting to avoid unexpected costs.

Goods in transit 

Ingredients are the heart and soul of any restaurant. Almost all items need to be imported into the premises which means that there is a risk of items being damaged or lost along the way. Goods in transit insurance offers restaurateurs the total peace of mind that their purchases are protected, even before arriving on-site.

Refrigerated stock cover

In the event of a power cut refrigerators can be switched off and foodstuffs can be left to spoil. Avoid having to replace ingredients by adding on refrigerated stock cover to a standard restaurant insurance policy.

Loss of license 

Alcohol sales can make up a huge chunk of profits. If you lost your liquor licence or failed to have it renewed, would you be able to survive? Loss of license insurance allows restaurateurs to insure against depreciated value and will also cover the costs of appealing refusals.