Restaurant Insurance
Specialist cover for independent restaurants, cafés, bistros and restaurant groups. Including public liability, employers' liability, kitchen equipment breakdown and business interruption.
Restaurant insurance is a package of business covers built around the risks of running a food service operation. A typical policy combines public liability, employers' liability, property and contents, stock, business interruption and products liability into one schedule, with optional covers for kitchen equipment breakdown, cyber incidents, money on premises and commercial vehicles. Larger or more complex operations may use a combination of policies across specialist insurers.
PIB Insurance Brokers arranges restaurant insurance for independent operators, family-run venues and multi-site groups, working with a panel of A-rated insurers who specialise in hospitality risk.
What restaurant insurance covers
Restaurant policies typically combine a core of essential covers with optional extensions, depending on the size and activities of your business. Cover types, limits and exclusions vary by insurer and policy wording. The summaries below are general; the policy schedule and wording determine what is and isn't covered in any given claim.
| Cover | What it covers | Common exclusions and limits |
|---|---|---|
| Public liability | Compensation claims from customers, delivery drivers and visitors for injury or property damage (e.g. a slip on a wet floor). Typical limits £1m to £10m. | Employee claims (covered separately), deliberate acts, contractual liabilities beyond what would apply in law. |
| Employers' liability | Claims from employees injured or made ill at work: burns, cuts, slips, scalds, repetitive strain. Legally required under the Employers' Liability (Compulsory Insurance) Act 1969, minimum £5m. | Genuinely self-employed contractors with their own cover. The definition of "employee" varies by policy. |
| Property and contents | Premises, fixtures, fittings, furniture and commercial kitchen equipment against fire, flood, storm, theft, escape of water and impact damage. | Wear and tear, gradual deterioration, damage during unoccupancy beyond a stated period (often 30 days), defective workmanship. |
| Stock | Food and drink stock against spoilage from freezer or fridge breakdown, power outage, contamination and flood. | Stock kept outside stated temperature ranges, gradual losses from poor stock rotation, losses where the cause cannot be identified. |
| Business interruption | Lost gross profit and ongoing costs (rent, wages, loans, business rates) while you're closed due to an insured event. Indemnity periods typically 12 to 36 months. | Closures from uninsured perils. Pandemic-related closures are typically excluded unless a specific extension applies. |
| Products liability | Claims from customers who suffer illness or injury from food or drink served (food poisoning, allergic reactions, contamination). | Products you knew were defective or recalled, deliberate breaches of food safety law. |
| Equipment breakdown | Sudden mechanical or electrical failure of essential kitchen equipment. Includes repair costs, spoiled food and lost income during downtime. | Damage from lack of maintenance, wear and tear, items beyond a stated age. |
| Cyber | Data breach response, system restoration, ICO regulatory fines, customer notification and reputation management. | Incidents from known unpatched vulnerabilities, fraud by your own employees (usually separate crime cover). |
| Goods in transit | Damage to food, drink, equipment and supplies being transported, whether for takeaway delivery, outside catering, corporate orders or events. Covers your own vehicles and, in some policies, goods carried by third parties on your behalf. | Improperly secured goods, theft from unattended vehicles, deliberate non-compliance with food safety transport rules, goods left in transit beyond stated periods. |
| Money | Cash on premises, in transit and in safes overnight. | Conditions apply: alarm set, safe to specified standard, limits on cash left in tills. |
| Legal expenses | Solicitor fees and court costs for employment disputes, contract disputes and property issues. | Disputes that existed before the policy started, claims below the excess, defending criminal proceedings. |
| Loss of licence | Lost income and additional costs if the restaurant loses a licence required to operate, such as a premises licence for alcohol, late-hours licence or entertainment licence. Particularly relevant where alcohol is a significant revenue source. | Loss of licence due to deliberate breach of conditions, criminal conviction of the licensee, lapses caused by failure to renew on time. |
| Commercial vehicle | Delivery vehicles and company cars, including third-party liability, accidental damage, fire and theft. Goods in transit can be added. | Standard motor exclusions apply. |
What restaurant insurance does not cover
It's as important to understand what falls outside cover as what falls inside. Typical limitations across restaurant policies:
- Known issues at the start of the policy. Pre-existing damage and ongoing disputes are usually excluded.
- Wear and tear. Gradual deterioration is not insurable damage.
- Maintenance failures. Damage that results from inadequate maintenance, such as a fryer fire from a poorly cleaned extraction system, may be excluded.
- Pandemic-related closures. Most policies exclude business interruption from communicable disease unless a specific extension is purchased.
- Unexplained shortages. Money cover responds to identifiable events, not unexplained shrinkage.
- Employee dishonesty. Usually covered under separate fidelity or crime cover, not within a standard restaurant package.
- Excess on every claim. All policies carry an excess (the amount you pay before the insurer contributes), which varies by cover.
Claims may also be reduced or declined if policy conditions aren't met. Common examples: alarm not set, safe left unlocked, extraction system not maintained on the schedule specified.
How much does restaurant insurance cost?
Premiums depend on turnover, employee numbers, premises type and tenure, cooking style, claims history and the sums insured. Heavy frying, charcoal or wood-fired cooking and multi-site operations attract higher property premiums. Five years of clean claims usually attracts the best terms.
Why work with PIB Insurance Brokers
- Specialist hospitality expertise.
- Access to A-rated insurers who underwrite hospitality risk specifically.
- Tailored cover for independents, groups, cafés, bistros and licensed restaurants.
- Dedicated account managers experienced in restaurant and hospitality insurance.
- Claims support for restaurant-specific incidents like kitchen fires, allergen claims and equipment failure.
- Risk management guidance for hospitality businesses, including fire safety, allergen controls and equipment maintenance.
Opening, switching, or not sure you're covered properly?
Get a quoteFrequently asked questions
What insurance does a restaurant legally need in the UK?
Only employers' liability insurance is legally required if you employ staff, under the Employers' Liability (Compulsory Insurance) Act 1969. Minimum cover is £5m and the certificate must be displayed. Public liability is not legally required but is usually required by landlords and licensing authorities.
Does restaurant insurance cover food poisoning claims?
Products liability cover, usually included in a restaurant package, responds to claims from customers who suffer illness or injury from food or drink served. It typically covers legal defence costs and compensation. It does not cover claims where you knowingly served unsafe food.
Are pandemic-related closures covered?
In most cases, no. Standard business interruption wordings exclude losses from communicable diseases, and the market has largely closed cover for pandemic-related closures since 2020 to 2022, with limited and expensive exceptions.
How quickly can I get a quote?
PIB Insurance Brokers can usually provide indicative terms within 24 to 48 working hours once we have your turnover, employee numbers, premises details and claims history. More complex risks can take longer.
Can I get insurance for a small independent restaurant?
Yes. Smaller restaurants can be insured on packaged policies that combine the main covers into one schedule, often at lower cost than buying each cover separately.