What type of restaurant & café insurance do I need?
Running a café or restaurant is a dream, but not without hard work and risks. Having the right insurance in place is essential for protecting your business against unexpected challenges.
Every restaurant and café is different, with its unique insurance needs.
Why is Public Liability an essential part for your restaurant and café insurance policy?
If your business caused property damage or personal injury to a third-party, action might be taken against you resulting in legal proceedings. The cost to defend your claim can run into thousands of dollars, even if you are not at fault. Could your café or coffee shop business bounce back after such an expense?
Worse still, if the court finds you were liable, the compensation you may be ordered to pay the victim can could up being enough to cripple your business as well as your personal finances.
The support of Public Liability insurance not only protects your business finances but your personal finances too, provided the incident is covered by your policy and is within your sum insured.
Everyday risks that cafes and coffee shop businesses face often come in the form of slips and falls. Spilled drinks and food are constant hazards which could cause serious injury and result in a costly claim. Getting the right Public Liability insurance policy helps safeguard your business from a whole range of potential harms and hazards.
Product Liability insurance
As a café or coffee shop owner, one of the biggest threats you face is food poisoning. All it takes is a batch of milk that’s beyond its expiry date to quickly turn your business’ reputation sour.
Product Liability cover forms part of a Public Liability insurance policy. It provides protection against claims of injury by a third-party caused by a product you have supplied them, for example, food or beverage products your café sells. Product Liability insurance will cover the costs of damages awarded and the costs associated with investigating and defending the claim made against your business.
It is important to check the definition of what a ‘product’ is within your insurance policy wording. It generally refers to anything that has been manufactured, constructed, erected, assembled, installed, grown, extracted, produced or processed, treated, altered, modified, repaired, serviced, bottled, labelled, handled, sold, supplied, re-supplied imported or exported by you or on your behalf.
Restaurant and café Business Insurance
Restaurant and Café Business insurance protects the essential items that help you stay in business. This cover can insure against fire, storm, accidental damage or theft. There are a range of insurance options to choose from, so you can tailor a policy to suit the needs of your business.
if you own the building your café or coffee shop operates from, you will want to be able to quickly repair or rebuild it if you were to experience water damage from burst pipes or a fire in the kitchen.
protect against damage to your business contents and stock from events like fire, storm and other perils.
Machinery Breakdown cover offers protection for the related costs of repairing or placing your insured machinery following a breakdown. You can also select an extension of cover for loss of stock which will provide financial protection for any food spoilage which may occur due to your fridge experiencing motor burnout or various other causes.
Business Interruption insurance provides cover for loss of income and the increased expenses of running your café or coffee shop, when you cannot operate normally due to damage caused by an insurable event.
covers both external and internal glass that is accidentally damaged or broken through theft or vandalism. It covers windows, mirrors, porcelain and illuminated signs. You may want to consider this cover if your café has a large shopfront or it is a requirement of your premises lease agreement to insure glass.
you handle money daily (tip jar included) making it an asset you need to consider insuring. Money cover can protect your hard-earned dollars, if it is lost, stolen or damaged whilst on your premises. It is also protected whilst in transit to or from your business or when held in your personal care.
As a restaurant owner your exposure could be at the payment desk – with your EFTPOS machine hacked. Cyber Liability insurance helps to protect you from claims and supports your profitability in the event of a cyber breach or attack.
As your business grows, you may start to employ more staff to help handle the extra load, introducing a new range of risks associated with operating a business. Management Liability helps protect your business from the risks and exposures associated with running a company. The areas which it can provide cover for include:
theft or crime committed by employees including theft of money or property.
Employment Practices Liability
protects against allegations of bullying, sexual harassment, unfair dismissal and discrimination.
Correct disposal of waste and garbage: if your café deals grease. Incorrect disposal could result in you and your business receiving a hefty fine.
Tax Audit insurance can alleviate the stress of preparing an audit by covering the costs of the professional fees incurred from preparing the audit. This includes the assistance of accountants, lawyers and bookkeepers.