What insurance do I need when setting up a new Restaurant or Cafe business?

What insurance do I need when setting up a new business? We are often asked this question from customers and clients when they are planning their new restaurant, cafe or new takeaway business.

Whilst restaurant insurance and café insurance are available through many outlets including on line insurer websites, comparison sites and large telesales centres, we feel it is important for you to select the right option for you. Most people think when they buy insurance they have received advice and guidance about the insurance cover they have opted for. The truth is most on line sales will not have included any advice which can leave you feeling confused if a problem arises and even more importantly perhaps not adequately insured.

To ensure you buy the right cover and receive professional advice make sure you are dealing with an independent insurance broker.

Business Insurance
All businesses are different so one policy will not suit the needs of all businesses. It is better to tailor a policy for your individual needs. That way you get the insurance cover you want and don’t pay for insurance covers you don’t need.

Remember some insurance covers you are required to have by Law, for example Employers Liability insurance and also Motor Insurance to comply with the Road Traffic Act. So if your business employs people and you operate a motor vehicle these two insurance policies are essential.

You may also be legally required under certain contracts to take out other covers, for example your landlord/lease may require you to arrange Buildings insurance or hold Public Liability insurance.
A Business insurance policy can be tailored to include all of the risk you face and usually will include the following:-

Asset Protection
This covers your physical assets and will include for example the buildings, your glass front, roller shutters and grills. Your fixtures and fittings, business equipment and business contents, and such things as cooking ranges and refrigeration equipment. It will also include your business money on the premises and also when carrying it to the bank. Don’t forget your stock including Frozen foods.

You are best to make a list of all the things you have purchased or that you are responsible for so you can feel confident you are adequately insured.

Income Protection
Your business will rely upon the doors being open allowing customers to come in and spend money enjoying your food and drink. Should something happen like a fire and you are unable to trade, you will obviously suffer a financial loss during the period you are closed plus the period it takes to win back the lost clients. This can be covered under income protection or business interruption insurance.

Where you have a statutory licence such as an alcohol licence this can be extended to include a reduction of value if the licence is cancelled and also legal costs to help defend an attempt to cancel your licence.

Liability Insurance
We have already mentioned Employers Liability is a legal requirement in the United Kingdom. So all businesses who have employees must at a minimum have employers liability insurance. But what does it cover? Simply it covers your legal liability should an employee suffer injury or illness arising out of their employment. Common incidents are slips and trips occurring in the working premises.

Public and Products liability insurance whilst not a legal requirement is a must for every business. This protects you in the event a customer suffers accidental injury or illness. In the food and leisure industry such incidents may arise from slips and trips on wet floors following cleaning or spillages or customers becoming ill after dining with you.

We are here to help
We hope this brief blog will help you in the planning stages of opening your new business. As you will be investing a lot of time and money into your future hopefully we have helped you identify the risks your business may face and how these can be mitigated and protected by an insurance policy.

We can help you decide what insurance cover is best for you including ensuring you get the right cover at the right price. We are independent and have access to an extensive range of insurance companies.

We will take the uncertainty and hassle out of establishing your insurance needs leaving you with peace of mind and more time to concentrate on opening the doors and winning new customers.

We wish you good luck on the big opening day!

For more Information or to request a quote, contact Will on 01606 863400