Hospitality businesses face a unique mix of risks: open flames, hot oil, refrigeration that must run around the clock and a steady stream of customers. Whether you run a fine-dining restaurant, a suburban cafe, a takeaway or a food truck, restaurant insurance helps protect your business from events that could otherwise force you to close your doors.
Key Risks for Restaurants and Cafes
- Kitchen fires from cooking equipment, grease build-up or electrical faults
- Customer injuries, such as slips on wet floors or burns from hot drinks
- Food-related illness claims
- Equipment breakdown, especially refrigeration, coffee machines and ovens
- Stock spoilage after a power outage or fridge failure
- Break-ins and theft of cash, alcohol and equipment
What a Restaurant Insurance Package Can Include
- Fire and property damage for your fit-out, kitchen equipment, furniture and stock
- Public and products liability for injuries or property damage to customers and third parties, including claims related to food you serve
- Business interruption to help cover lost profit and ongoing costs such as rent and wages while you recover
- Machinery breakdown for essential kitchen and refrigeration equipment
- Deterioration of stock following breakdown or power failure
- Glass cover for shopfronts and display fridges
- Theft and money cover
Don’t Forget Workers Compensation
If you employ staff in Victoria, you are generally required to hold WorkCover insurance through WorkSafe Victoria. This is separate from your business insurance package, so make sure it is in place and that your wages declaration is accurate.
Business Interruption: The Cover Many Owners Underestimate
A fire may only damage part of your kitchen, but you could still be closed for weeks while repairs are completed and equipment is replaced. Without business interruption cover, you may be paying rent, loans and staff while earning nothing. Choosing the right indemnity period, the length of time you are covered while you recover, is important.
Practical Tips to Reduce Risk
- Have exhaust canopies and ducts cleaned regularly by professionals and keep records.
- Maintain fire extinguishers and fire blankets and train staff to use them.
- Use non-slip mats and clear signage for wet floors.
- Follow food safety programs and keep temperature logs.
- Service refrigeration and cooking equipment regularly.
Insurance Designed for Hospitality
Insurers often look closely at cooking methods, deep fryers and fire suppression systems. Gidda Insurance Brokers helps restaurant and cafe owners present their business accurately to insurers and compare cover options. Explore our services or speak with our team on 0491 999 555.
This article contains general information only and does not take into account your objectives, financial situation or needs. Before making a decision, consider whether the cover is appropriate for you and read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). Gidda Insurance Brokers Pty Ltd is an Authorised Representative (No. 001307383) of Regis Licensing Pty Ltd ABN 71 130 820 727, AFSL 338156.
