Running a restaurant means managing a lot at once. Staff, suppliers, seasonal rushes, food hygiene ratings, and the odd health and safety inspection. The last thing you need is a gap in your restaurant insurance that leaves you out of pocket when something goes wrong. And in hospitality, things do go wrong.
This guide runs through the main types of cover restaurant insurance needs to include, so you know what you’re looking at, why each one matters, and why tailored commercial insurance is important.
Public liability insurance
This is the foundation of any restaurant policy. When you’re welcoming paying customers through your doors every day, your exposure to public liability claims is constant.
A customer slips on a wet floor after a spillage. A dish causes an allergic reaction that wasn’t properly declared. A glass breaks and a guest gets hurt. Without public liability insurance, any compensation claim comes straight out of the business.
Most restaurant policies start at £1 million in cover. Many operators opt for £2 million or more, particularly those with high footfall or outdoor seating areas. It’s worth reviewing the limit against the scale of your operation rather than just accepting whatever the default is.
Employers’ liability insurance
If you employ anyone, full-time, part-time, or seasonal kitchen and floor staff, employers’ liability insurance is a legal requirement. It covers claims from employees who are injured or become ill as a result of their work.
In a busy kitchen environment, burns, slips, heavy lifting, and repetitive strain are all occupational realities. The minimum legal level of cover is £5 million, and most commercial policies include it as standard.
This is not optional. Operating without employers’ liability while you have staff in place carries a fine of up to £2,500 per day.
Buildings and contents cover
Whether you own your premises or lease them, it’s worth being clear on what your buildings and contents cover actually includes.
Commercial kitchen equipment is expensive. A full set of catering appliances, refrigeration units, and point-of-sale systems can easily run to tens of thousands of pounds to replace. A kitchen fire, a burst pipe, or a break-in can set you back significantly and disrupt trading for weeks.
Make sure your contents sum insured reflects the actual replacement value of your equipment and stock. If your operation has grown since you first took the policy out, your cover should have grown with it.
Business interruption insurance
This is one of the most underestimated covers in hospitality, and one of the most valuable. If a flood, kitchen fire, or structural fault forces you to close, business interruption insurance covers your lost income while you’re getting back on your feet.
It’s not just about the cost of repairs. It’s about the revenue you’re not generating while those repairs are happening.
For a restaurant trading through the summer season in Cornwall, a fortnight’s forced closure could mean thousands of pounds in lost revenue. Business interruption cover bridges the gap between the incident and reopening, giving you real financial breathing room rather than a mounting debt.
Stock and refrigerated goods cover
Restaurants hold significant value in perishable stock. A fridge failure, a power cut, or a supplier error can wipe out a full delivery of fresh produce overnight.
Specialist restaurant insurance can include cover for refrigerated stock and perishables, so a failed compressor at the wrong moment doesn’t become a write-off you absorb yourself.
Loss of licence cover
If you hold a licence to serve alcohol, that licence is a business asset worth protecting.
Loss of licence cover protects you financially if your premises licence is revoked or suspended, giving you something to lean on while you deal with any dispute or appeals process. It’s a relatively low-cost addition that most licensed premises should seriously consider. You can learn more about loss of licence cover in our detailed guide.
Products liability
Public liability covers injury and damage that happens on your premises. Products liability covers claims that arise from the food and drink you serve.
A food poisoning claim following a meal at your restaurant would typically fall under product liability rather than public liability. Many policies bundle both together, but it’s worth confirming yours does before you need to make a claim.
Restaurant Insurance That Actually Fits Your Business
Getting the right restaurant insurance isn’t about finding the cheapest result on a comparison site. It’s about making sure the cover actually fits the way your business runs. That means understanding your peak season, your staffing levels, whether you hold a licence, and the real replacement value of your equipment.
At Cotter Insurance, our hospitality and tourism insurance covers restaurants and food businesses across the UK. Get in touch and we’ll find cover that actually fits.