Australians love their cafes and restaurants. So much so that cafes, restaurants, and takeaway places generated nearly $64 million in revenue in 2023.
Opening your own restaurant can be financially rewarding and personally satisfying. But it’s not without its fair share of risks. That’s why having the right insurance to protect your business is essential to steer your restaurant towards long-term success.
Here’s a look at six insurance policies you might consider as a restaurant owner.
1. Public Liability
Picture this: Your restaurant is open on a busy Friday night. Amid the hustle and bustle, accidents can happen — food poisoning, spilled wine, or worse. Public Liability can help protect your business against the potential financial repercussions if and when such unforeseen mishaps happen.
For instance, a customer slips on some and breaks their wrist. Accidents like this could lead to significant third-party claims. But Public Liability could cover the costs of compensation to the third party, medical bills or legal fees.
2. Management Liability
Management Liability protects restaurant owners and their management team from the risks that come from managing the business.
This policy can cover a range of exposures, including claims of bullying and harassment, unfair dismissals and discrimination. Management Liability also provides protection against fines for improper waste disposal, or health and safety violations.
3. Business Interruption
For any restaurant, a sudden halt in operations can be devastating. Having Business Interruption insurance could offer some relief from the loss of revenue and ongoing expenses during such forced closures.
Suppose your restaurant suffered from a kitchen fire and was forced to shut down temporarily. While the physical damage is being repaired, Business Interruption insurance helps cover the loss of income and can assist in paying fixed expenses, such as staff wages, utility bills and rent. This allows your restaurant to bounce back without the added financial strain.
4. Building insurance
Owning the building where your restaurant operates adds a layer of responsibility beyond the day-to-day management of it. Unforeseen events like kitchen fires, burst water pipes, or damage from natural disasters can pose serious threats to your business operations.
Building insurance is designed to cover the risks of such incidents. For instance, if a severe storm damages the roof, having Building insurance means you can quickly recover and rebuild without crippling your budget.
5. Contents insurance
What would happen if your restaurant was broken into and it’s interior vandalised? Think about the impact it would have on your ability to operate and serve your customers, not to mention the financial burden of replacing your assets.
Contents insurance covers building contents that get damaged in fires, storms, accidents or vandalism. This includes your stylish dining tables and chairs, as well as your commercial ovens and modern refrigerators.
6. Theft insurance
Imagine arriving to your restaurant in the morning to find essential cooking equipment or your cash registries have been stolen overnight. Theft insurance can provide some peace of mind by helping you replace these stolen items quickly without having to pay completely out of pocket.
If you’re looking for more comprehensive protection for your restaurant, consider combining Theft insurance, Building & Contents and Business Interruption insurance into a bundled Business insurance package.
Your partner in restaurant insurance
BizCover takes the drama out of insurance so you can have peace of mind without the hassle. Within minutes, you can quote and compare multiple business insurance options – whether it is Public Liability, Management Liability, Business insurance or more – and find affordable cover that suits your restaurant’s needs.
Visit BizCover today, and join the thousands of cafe and restaurant owners who trust us with their business insurance needs.
