How Much is Restaurant Insurance?

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The cost of restaurant insurance varies dramatically depending on the extent of the policy. Research and data-driven finance website NimbleFins offers a full list of the different types of restaurant insurance and their expected costs (read more here).

Employers liability is essential and required by law in most cases where a business has employees. However, some exceptions include a family business employing close family members such as parents and grandparents.

Restaurant public liability insurance is not a legally required insurance, but it is essential for any business dealing with the public to protect against claims. Public liability insurance covers personal injuries and damage to personal property. These claims can be costly, so financial protection to cover legal costs and compensation can be invaluable to a business.

Contents insurance offers protection against accidental damage, loss, or theft of costly restaurant equipment such as food graters and chippers. It can also include till systems and furniture.

Stock cover is similar but offers protection for the restaurant stock in the event it is lost, stolen or damaged. Frozen food is not always included in these policies.

Restaurant product liability insurance can be important as it offers cover in the event of a member of the public becoming ill and blaming the restaurant. In addition, it covers claims of bodily injury and property damage due to the products or goods.

A restaurant may also consider personal accident insurance for employees, commercial vehicle insurance if the restaurant offers deliveries or transports goods.

There are also insurances such as business interruption insurance if the business cannot open due to an event such as a fire. In addition, if the restaurant owns the property, then commercial property insurance will protect the business if an event such as a fire or flood causes damage to the building.

The overall cost of cover depends on the different insurances chosen to be included in a restaurant insurance policy.

The price can also increase if there is a deep fat fryer, an ATM, the number of employees, late licenses, public entertainment, claims history, and coverage limits.

How much does restaurant liability insurance cost?

Restaurant liability insurance, which typically consists of both public liability and employers’ liability insurance, can start from £1,000 a year. However, this is a basic policy, and most restaurant owners would want to consider a range of other types of cover to ensure the business is fully protected.

Employers’ liability insurance is required by law if a business has employees. Though there are some exceptions, such as a family business employing close family members, public organisations, government departments, and health service bodies. The policy, which offers protection if a member of staff is injured or becomes ill and blames the business, can cover the legal fees that come from defending against a claim as well as cover any compensation payments. NimbleFins explains the cover available and those that are exempt**.

Restaurant public liability insurance offers protection against claims of accidental injury or property damage. The policy provides the finances for the legal fees incurred when fighting against a claim and the compensation payments if awarded. The NimbleFins website has details of public liability insurance.

Other types of liability insurance can be useful, such as product liability insurance, which is used if a member of the public becomes ill or suffers an injury and blames the business’ products or goods.

 

What insurances are required to run a restaurant in the UK?

All businesses with employees must have employers’ liability insurance**. This provides cover if a member of staff is injured or becomes unwell due to the job. In addition, it will cover the financial costs of legal expenses fighting the claim and will cover the compensation payments.

While other insurances aren’t legally required, they can still be essential for a restaurant.

Other important types of cover include public liability insurance for claims made by members of the public of injury or property damage and commercial property insurance if the business owns the building.

What insurance does a restaurant need in the UK?

While the needs of each restaurant will vary, in the UK, a restaurant that employs staff must have employers’ liability insurance unless it falls under the few exemptions.

Restaurants also need public liability insurance to protect the business if a member of the public is injured or their property is damaged, and they blame the restaurant.

Restaurant product liability insurance can also be important as it offers protection in the event a member of the public becomes ill or is injured and blames the business’ goods or products. For example, this could be if a customer becomes ill and blames the food.

If the restaurant owns the building it runs from; commercial property insurance is essential for protecting the business if there is a fire or flood, lightning or theft and the building is damaged.

Contents and stock cover both offer vital protection if the expensive equipment is damaged or stolen or if the stock is lost, stolen or damaged.*** As is the cover for tenant improvements.

A restaurant may feel other types of insurance are needed, including commercial vehicle insurance if the restaurant offers delivery or transports goods.

Sources

* www.nimblefins.co.uk/business-insurance/restaurant-insurance

** https://www.rbkc.gov.uk/business-and-enterprise/health-and-safety/employers-liability-compulsory-insurance

*** https://www.eposnow.com/uk/resources/restaurant-vs-food-truck-which-is-best-in-2021/

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