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Fully Covered: Navigating the Insurance Landscape for UK Restaurants

By Dean Laming on January 3rd, 2024

Opening a restaurant in the UK represents the fulfilment of creative and entrepreneurial drive for many, but it also carries substantial financial risks that make comprehensive restaurant insurance vital. Without proper cover, that dream you invested in could quickly turn into a nightmare if disaster strikes.

Thankfully, with the right insurance in place covering risks like property damage, business interruptions, employee injuries, food contamination claims and more, UK restaurateurs can protect their livelihoods against unpredictable perils. 

We break down the essential policies restaurant owners need to safely navigate the hospitality sector. 

Must-Have UK Restaurant Insurance Cover

While specific needs vary for small cafes versus Michelin star restaurants, these core insurance products prove essential across most eateries:

Public Liability Insurance

This vital policy protects against claims if a customer is accidentally injured on your premises and seeks damages.

Employer’s Liability Insurance

Legally required for restaurants with staff, it covers compensation costs if an employee suffers a work-related injury or illness.

Product Liability Insurance

Shields your business if a customer becomes ill or injured from contaminated food you served and files a lawsuit.

Commercial Property Insurance

Protects the physical restaurant itself alongside cooking equipment, furnishings, stock and all other assets against events like fire, floods or theft.

Business Interruption Insurance

Provides vital income replacement if disasters or severe incidents force you to close temporarily for repairs while remaining operational.

Without coverage, single incidents causing modest property damage or a minor customer injury could still sink uninsured establishments, who must then cover gigantic repairs and legal bills themselves. 

Calculate Sufficient Cover

A common mistake is failing to accurately assess potential risks when purchasing restaurant insurance policies. A policy might seem suitably robust until catastrophe strikes and limits prove inadequate. We advise owners:

  • Carefully value all business assets needing protection when buying property insurance. Don’t underestimate rebuild costs if it is totally destroyed.
  • Study recent public liability claims judgments to gauge likely damages. Account for future inflation.
  • Talk to insurance experts to fully understand risks for your particular restaurant type. Their guidance proves invaluable in determining suitable liability limits.
  • Discuss policy terms in detail to avoid surprise gaps around issues like liquor liability exclusions or unique equipment.

While more substantial cover does increase premiums, going underinsured saves little money yet massively boosts vulnerability. Know your risks.

Restaurant Insurance Dos and Don’ts

In order to get properly covered, below are some best practices for navigating the insurance landscape:

DO:

  • Annually re-evaluate policies as restaurants evolve to ensure adequate protection that accounts for added locations, new offerings, more staff and other changes.
  • Discuss any past insurance claims and lessons learned with prospective insurers to benefit from their risk insights tailored to your situation.
  • Implement strong safety, food handling and employee operating procedures aligned to insurance guidelines to minimise risks.

DON’T:

  • Conceal known risks from insurers that could invalidate future claims if undiscovered perils later cause incidents. Complete transparency proves key.
  • Choose insurers lacking hospitality and dining sector expertise since policies often miss vital nuances. 

Get Restaurant Insurance Today

Here at Brisco Business, we provide specialist coverage tailored to the distinct risks facing UK dining establishments. Our restaurant insurance packages offer public liability, employer liability, product liability, property damage, business interruption and other vital coverages.

Policies are tailored to safeguard both established names and promising startups. We enable owners to focus on their restaurants while being backed by comprehensive, compliant protection – no matter what misfortunes may come.

Get a no obligation-free quote today to gain peace of mind that you are fully protected.

Dean Laming

Dean is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of how to run a business and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Dean Laming

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