What is restaurant insurance?

Restaurant insurance protects food businesses against common risks, including property damage, stolen equipment or claims from customers (for example, in cases of food poisoning). Most policies are comprehensive, covering:

• Accidents
• Property damage
• Legal claims made by employees or customers against the business
• Damaged or destroyed stock or kitchen supplies
• Business disruptions

Many insurers offer food business insurance as a comprehensive package that combines several essential types of cover. These are: 

• Public liability insurance: covers claims made by customers and members of the public who have been injured or have property damaged due to the business’s premises or actions.
• Employers’ liability insurance: covers claims, compensation or legal fees if an employee becomes ill or injured while working for your business. This is a legal requirement for most UK businesses.
• Business interruption insurance: protects against lost income and expenses if unexpected events force your business to close temporarily. Some examples of events covered include fires, floods or storms.
• Business contents insurance: covers the costs of items stolen or accidentally damaged on your business premises, such as kitchen utensils, stock and employees’ belongings.
• Building insurance: covers costs for repairs to your premises if damaged by an event such as a flood, fire or storm.

Restaurant business insurance packages may also be sold under other names like:

• Food business insurance
• Food vendor insurance
• Food liability insurance
• Catering insurance

The exact cover depends on both the policy and the type of food business you run. Review the terms with a broker or legal professional to ensure you have the right protection.

Who needs restaurant or food business insurance?

Any business that prepares or serves food in the UK may require some form of insurance. This includes restaurants, cafés, takeaway outlets, catering services and food stalls. The type of policy you need will depend on several factors, such as:

• Whether you employ staff: if you employ anyone such as food servers or chefs, you are legally required to hold employers’ liability insurance. This protects your business if an employee becomes ill or injured while working.
• Whether you use specialist equipment or machinery: if you have kitchen appliances such as air fryers or industrial ovens, they must be properly maintained and may require regular quality control inspections to ensure compliance with UK health and safety regulations. Insurance can help cover the risks associated with their use.
• Whether you serve food to the public: if customers are injured on your premises or suffer food poisoning, you may face legal action. Public liability and product liability insurance can help protect your business from these claims.

Food businesses face a wide range of risks that can impact the business, its employees and customers. This is why comprehensive restaurant insurance is often essential for safeguarding your operations.

Examples of when you might need restaurant insurance

Here are some common situations where insurance can protect your food business:

• Employee accidents: if a staff member suffers a burn or scald in the kitchen, your insurance may cover medical expenses, compensation and legal fees if a claim is made.
• Customer illness: if a customer gets food poisoning, product liability insurance can help with legal costs and compensation. If the illness results from how food was stored or prepared on site, public liability insurance may also apply.
• Property damage: if a fire destroys your premises and its contents, the costs of replacing or repairing equipment could be covered by business premises insurance.
• Business interruption: if you have to close temporarily due to an event such as flooding, a major leak or storm damage, business interruption insurance can help cover lost income and ongoing expenses.

Where can you find restaurant business insurance?

Finding the right policy often depends on the size and nature of your business. Common ways to source restaurant insurance include:

• Specialist insurance brokers: brokers who focus on hospitality can help tailor cover to your business’s unique risks
• Direct from insurance providers: many insurers offer packages designed specifically for restaurants, cafés or catering businesses
• Online comparison sites: these can provide an overview of different policies and price points, although it’s important to review the details carefully before choosing

If you are a business selling food in the UK, there are several different types of restaurant insurance you may need. These cover you for employee accidents, customer illness and more. Find restaurant business insurance through specialist brokers, direct from insurance providers and other reputable sources.