Running a restaurant can be a potentially risky operation, as can running any business dealing with food. Not only do you have all the other risks involved in running a business, but food also comes with its own risks, such as the possibility of causing a customer to become ill.
For your peace of mind, it may be a good idea to have restaurant insurance in place, which covers many of the areas of risk so that you can focus on serving up meals to happy diners.
Why you may need restaurant insurance
Slippery floors, food poisoning, burns – there are many things that can go wrong in a restaurant, even if you do everything by the book. Kitchens by their nature present more risks than many other work environments, and you will want to ensure that, when accidents do happen, you have protection in place should your employes or customers make a claim for compensation against you.
However, restaurant insurance goes beyond liability cover. It also provides protection for your property and stock, as well as other risks that may affect the smooth running of your business.
What does it cover?
All restaurant insurance policies are different depending on the provider you use. However, the following are typically included on many policies:
- public liability insurance to provide you with financial protection should a member of the public make a claim of compensation against you for any reason;
- employers’ liability insurance to provide cover for claims made by your employees;
- goods in transit, which provides financial protection for goods on the move;
- loss of licence, which can provide cover for any loss of income up to a certain level in this situation;
- stock cover, including cover for frozen stock, tobacco and alcohol;
- building insurance to protect your property from fire, flood and storm damage;
- contents insurance;
- business interruption cover to provide financial assistance should you be prevented from doing business as the result of an insured peril.
Things to look out for
All policies are different, and you may not require everything that is included in a restaurant insurance policy. For example, you may not own the property and may not therefore require building insurance, so it is essential to only get cover for what you actually need.
You may also want to buy public liability or employers’ liability separately depending on your needs, or it may be more convenient to get them within one policy.
There are many factors that may affect the premium. These may include the size of your restaurant, the number of staff you employ, whether you have an alarm system in place, and the amount of time you have been trading. Find out from your provider whether there are other aspects that can affect your premium so you know how to find the most suitable product for your needs
Consider your insurance needs
Restaurants can present a number of risks for the owners, so it is important to have suitable insurance in place. By finding an appropriate policy for your needs, you can focus on the running of your restaurant without having to worry that a small mistake could put you out of business.
