Insurance For Restaurants

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Whether you’re serving up a steaming bowl of Bolognese or a 10-course fine dining feast, being in the restaurant game is fast paced, varied and sometimes full of surprises. 

You’re experienced and know where to source the best produce, and how your regulars like their meals. You’ve built a reputation and brand for yourself over the years, one which is invaluable and worth protecting. 

One thing which every restaurant owner needs to consider when running a restaurant is having the right insurances in place, starting with Public Liability insurance. 

Waiter holding a salad and bruschetta

Why Do Restaurants Need To Consider Public Liability and Product Liability Insurance*?

Public Liability insurance* is designed to protect your restaurant business from the financial impacts if you face allegations of negligence for injuring a third party or damaging their property.  Legal costs in defending a covered claim will also be included.  It is a wise type of insurance for any restaurant to consider. 

Product Liability insurance * usually forms part of a Public Liability policy and is important for restaurant businesses to also think about including in their insurance plan.  

Product liability cover provides protection in relation to claims by third parties due to personal injury or property damage caused by products sold or supplied by your business.  Reasonable costs incurred in defending a covered claim will also be met. For example, if your customers were to experience food poisoning from the food you provided, not only could you be faced with one claim for damages, but multiple claims from impacted customers. 

The associated legal costs of defending a claim, even if you are not liable of negligence, could put both your business and personal finances at risk, potentially causing your business to close and hang up the knives for good. 

Public Liability insurance provides peace of mind and financial protection, because it can cover your legal and defence costs, court attendance costs and compensation awarded to the claimant. 

Protect your restaurant business today.

Other Types of Insurance

There are many other types of insurance policies for businesses out there.  Here are some of the more common ones: 

Business Insurance*

A lot goes into operating your restaurant and your business assets help make it happen. From your tables and chairs to your kitchen equipment, they keep your business functioning, and without them it could spell disaster for your business. Business Insurance is an insurance package designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage). You can pick and choose what insurance products will suit your business best.  Some of the options are: 

  • Glass*- Cover for breakage of internal and external glass and signage you own or for which you are legally responsible, at the insured premises. 
  • Building*- if you own your building premises, you probably can’t afford to be out of business if your building is damaged or destroyed due to an insurable event. This insurance product covers your building if it is damaged as a result of a fire, storm, malicious activity or another defined event listed in the policy. 
  • Contents*- Cover for loss of or damage to items such as business equipment, stock, plant and machinery, records and furniture belonging to you at the insured location. 
  • Machinery Breakdown*- you rely on your fridges to keep your produce fresh, so it makes sense to have cover for them. Machinery breakdown insurance covers the cost to repair or replace specified machinery following a breakdown.  You can also choose to insure the additional costs to your business or business interruption expenses caused by a breakdown of machinery, such as getting an extension to cover the loss of stock if your fridge experiences a motor burn out and your stock was ruined as a result. 
  • Business Interruption*- consistency is key when owning a restaurant.  A kitchen fire could see you closing your doors not only impacting on the immediate trading days, but the potential to lose customers for the long run. Business interruption insurance provides  

cover for the loss of income and increased costs of operating your business caused by a specified insured event (such as property damage or fire).  It is also designed to assist your business to recover from an insured event by paying ongoing expenses (such as wages or rent). 

  • Tax Audit* – You have enough on your plate running your own restaurant and the last thing you need is the stress of an audit from the Australian Tax Office. Tax Audit Insurance covers a business for specified costs in the event that it is selected by the Australian Tax Office for auditing. The policy offers coverage for the costs of accountants and other nominated professional fees incurred in the course of an audit. 

Management Liability* 

In additional to insuring your restaurant against risks from third parties and to your business assets, you may want to consider also protecting the operational side of your business, especially if you employ staff. Management liability insurance* protects directors and officers and the insured company itself from the many exposures relating to the management of a company. Owners and those responsible for the management of a company have specific responsibilities which can result in personal liability for alleged or actual wrongdoing.  Management Liability insurance can provide protection for: 

Employment Practices Liability claims such as bullying, harassment, discrimination, unfair dismissal 

EPA fines for the incorrect disposal of waste and garbage 

Theft by employees, including theft of money and property 

Empty restaurant ready to open

What Should You Consider Before Purchasing Restaurant Insurance?

Having the appropriate insurances in place brings peace of mind if something were to go wrong and should be one of the first things you consider when creating your business plan. 

You’ve worked long and hard to get your business established and the last thing you want is for it to all come crashing down due to an unexpected event that you weren’t insured for. Business Insurance is there to provide protection when you need it most and can provide cover for real life risks such as lawsuits, employment disputesdamage to your equipment and building and equally important, your reputation. 

Getting the Right Public Liability Insurance for Restaurants

Every restaurant is unique, bringing its own flair, menu and appetite for risk, meaning no two businesses’ insurance policies are the same. Public Liability Australia gives you the flexibility to compare multiple quotes from some of Australia’s top insurers, so you can choose the coverage that suits your restaurant business. 

In just a few clicks or a phone call you can have your business insured in minutes. 

*As with any insurance, cover is subject to the terms, conditions and exclusions contained in your policy document.  The information contained on this webpage is general only and should not be relied upon as advice 

Public Liability Insurance is a business name of BizCover Pty Ltd (ABN 68 127 707 975; AFSL 501769) 

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