Running a restaurant involves much more than preparing great food and providing excellent service. Restaurant owners must also manage risks involving customers, employees, food, equipment and the premises itself.
A customer could slip on a wet floor, an employee could be injured in the kitchen, or a customer could allege that food served by the restaurant caused an illness or allergic reaction. Without suitable insurance, incidents like these could have a significant financial impact on the business.
Restaurant insurance is not usually one standard policy. It typically combines several types of cover selected to reflect how the restaurant operates.
Understanding Your Restaurant’s Insurance Requirements
The insurance required by a small café may be very different from the protection needed by a large licensed restaurant, takeaway or hospitality venue.
Insurers may consider factors such as:
- The type of food served
- Cooking methods and equipment
- The number of employees
- Annual turnover
- Alcohol sales
- Opening hours
- Takeaway and delivery services
- Outdoor dining
- Entertainment or live music
- The value of the premises, contents and stock
Providing complete and accurate information helps ensure that your policy properly reflects your business.
Employers’ Liability Insurance
If your restaurant employs staff, Employers’ Liability insurance will generally be a legal requirement.
This can include:
- Chefs and kitchen staff
- Waiting staff
- Bar staff
- Cleaners
- Managers
- Part-time employees
- Seasonal and casual workers
Employers’ Liability insurance can help meet compensation and legal costs if an employee is injured or becomes ill because of the work they carry out for the restaurant.
Restaurant kitchens can be busy environments, with risks including burns, cuts, slips, manual-handling injuries and exposure to cleaning chemicals.
Northern Ireland employers generally need at least £5 million of Employers’ Liability cover from an approved insurer. A valid insurance certificate must also be displayed where employees can easily access it, either physically or electronically. (Hseni)
Public Liability Insurance
Public Liability insurance may protect your restaurant if a customer or another member of the public is injured, or if their property is damaged, because of your business activities.
Examples could include a customer:
- Slipping on a wet floor
- Tripping over furniture or uneven flooring
- Being injured by a falling object
- Having clothing or personal property damaged
- Being injured in an outdoor dining area
Public Liability insurance is not generally a blanket legal requirement. However, a landlord, lender, event organiser or other commercial partner may require the restaurant to hold it.
Even where it is not contractually required, it can provide important protection against potentially substantial compensation and legal costs.
Product Liability Insurance
Restaurants are responsible for the food and drink they supply.
Product Liability insurance may provide protection if a customer alleges that food or drink served by the restaurant caused:
- Food poisoning
- An allergic reaction
- Illness or injury
- Damage resulting from a contaminated product
Food businesses must provide the required allergen information and follow applicable food-safety requirements. Appropriate staff training, record keeping and cross-contamination procedures are also important.
Product Liability insurance does not remove these responsibilities, but it may help protect the restaurant if a claim is made.
Buildings Insurance
If you own your restaurant premises, Buildings insurance may protect the structure against insured risks such as:
- Fire
- Flood
- Storm damage
- Escape of water
- Malicious damage
- Impact damage
If you rent the premises, the landlord may insure the main building. However, you should confirm exactly what the landlord’s policy covers.
Restaurant owners and tenants may still be responsible for fixtures, improvements, signage, fitted kitchens and other additions to the premises.
Contents, Equipment and Stock Insurance
A restaurant can contain a considerable amount of valuable property.
Contents, equipment and stock cover may protect items such as:
- Ovens, grills and deep-fat fryers
- Refrigerators and freezers
- Extraction and ventilation equipment
- Dishwashers
- Tables, chairs and furnishings
- Glassware, crockery and utensils
- Electronic point-of-sale equipment
- Food and beverage stock
- Alcohol and other high-value stock
- Fixtures and tenant improvements
The sums insured should reflect the current cost of replacing these items, rather than their original purchase price or second-hand value.
Underestimating replacement costs could leave the restaurant underinsured.
Does Restaurant Insurance Cover Food Poisoning?
Product Liability insurance may cover certain claims where a customer alleges that food supplied by the restaurant caused an illness.
Whether a particular claim is covered will depend on the circumstances, policy wording and any applicable exclusions or conditions.
Restaurants should maintain suitable food-safety procedures, temperature records, cleaning schedules and staff-training records. These can be particularly important when responding to an allegation.
Does Restaurant Insurance Cover Allergic Reactions?
Product Liability insurance may respond to certain claims involving an allergic reaction.
However, restaurants are still responsible for providing the required allergen information and managing the risk of cross-contamination.
Staff should understand how allergen enquiries are handled and should never guess when answering a customer’s question about ingredients.
Finding Restaurant Insurance in Northern Ireland
Finding suitable restaurant insurance involves more than simply choosing the lowest premium. Your policy should reflect your premises, employees, customers, equipment and the food and drink you provide.
When comparing quotations, consider the cover limits, exclusions, excesses and policy conditions – not only the overall cost.
At Dolmen Insurance Brokers, we can review your existing arrangements, compare quotations from a panel of insurers and help you understand the differences between the available policies.
Whether you operate a café, takeaway, family restaurant, licensed restaurant or larger hospitality venue, our team can help you explore insurance options tailored to your business.
Contact Dolmen Insurance Brokers on 028 9601 6840 or email info@diblni.co.uk to discuss your restaurant insurance requirements.
Disclaimer
The information provided in this blog is for general guidance and informational purposes only. While every effort has been made to ensure accuracy at the time of publication, Dolmen Insurance Brokers Limited accepts no responsibility for any errors, omissions or changes in legislation. Insurance policies and cover requirements may vary depending on individual circumstances. This blog does not constitute legal, financial or insurance advice.
Readers should seek professional advice tailored to their particular circumstances before making any insurance decisions.
Dolmen Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 978635.
