For hospitality businesses such as restaurants, cafés, and coffee shops, having the right insurance in place is an important step. 

As a restaurant owner you already have a lot on your plate, especially if you are just starting out. From slips, trips and falls to interruptions to your business operations, cafe and restaurant insurance have a wide range of coverage elements. If you are thinking of opening a cafe or are reevaluating your current insurance policies, here are some important tips you should know.

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What Types of Insurance Does a Cafe or Restaurant Need?

In the hospitality industry, not every business will look the same on paper. That's why there are a range of cover options available from property cover to machinery breakdown.

Public and Products Liability

One of the most common insurance policies taken out by cafes and restaurants is Public and Products Liability.

Public liability insurance provides cover for customer injury or damage to their property as a result of your products or services. For many cafes and restaurants, an example of this could mean customer slips and falls or food poisoning.
Insurance doesn't just cover you against customer injuries, they can also help with your legal costs and lawsuits. If you need to defend yourself against a public liability claim, the legal fees can reach into the thousands.

Find out more about Public & Products Liability

Machinery and Equipment Breakdown 

In the hospitality industry where you rely on coffee machines, ovens and deep fryers, it can be costly if something breaks down at an inconvenient time. Machinery breakdown cover can cover replacement or repair of your machinery and can also include the cost of a hire machine so your business can run as usual.

Glass Insurance Cover

Glass can include internal and external breakage of glass and signage, depending on your insurer. This can include building windows, display shelf glass, or doors that unexpectedly break.

If you are a tenant, your landlord may specify a minimum level of cover you need to have in your lease agreement, so it is always beneficial to check first.

Business Interruption

Business interruption insurance cover covers the loss of income and expenses following an insured event such as a fire. The types of events that are included in your cover, will be detailed in your Product Disclosure Statement.

Business Property damage 

If you own the building your cafe or restaurant is in, building cover can protect against storms, fire, flood and other events. Your property insurance can also extend to cover your content, stock or inventory loss.

Some insurers will vary on what they define as contents and machinery breakdown, so it's always important to check definitions before you finalise cover.

Commercial Motor Vehicles

If you have a delivery van or other work related vehicles including trailers, you can cover them under a commercial motor vehicle policy. There are different levels of cover available such as Comprehensive and Third-Party Property Damage.

Theft and Burglary Insurance 

In the event of a theft or attempted theft, you can opt for employee and third party theft in your business insurance cover. This can include theft of your contents and stock as well as damage to property due to forced entry.

Explore the Levels of Cover Available

While not all levels of insurance are mandatory, some third parties like landlords or financial institutions may require a Certificate of Currency and proof of your insurance. For hospitality businesses this could include landlords for commercial leases or any third-parties that you work with. 

Find out more about Business Package Insurance

Checklist for Cafe and Restaurant Owners

If you are a hospitality business who is starting out or in the process of renewing your current cover, here are some important steps to add to your checklist: 

• Create a record of your assets, including contents and stock and their value
• Have an accurate record of documents include lease agreements or contracts 
• Update or notify your broker when changes happen to ensure your cover is accurate 
• Document your workplace health and safety procedures and risk management systems
• Claims history for the last 5 years
• Have your latest Profit and Loss available

Contact an Insurance Broker to Help You 

From a kitchen fire to water damage or cold room failure, there are many risks when it comes to running your own cafe or restaurant. If you have a hospitality business in Australia, contact Peter Cameron Insurance Broker today to chat to a broker or get a quote. 

The benefits of having an insurance broker are more than just gathering the most competitive terms for your policy, they will also assist you through the claims process.

Make sure your cafe or restaurant is adequately covered. Fill in a Quote Enquiry Form by clicking the button below, or contact our team to find out more about hospitality insurance. 

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Any advice provided on this website is general in nature. It does not take into account your objectives, financial situation or needs. You must therefore assess whether it is appropriate, in the light of your own individual circumstances, to act upon this advice.