Why do Restaurants & Cafes need it?
Take a minute to sit back, relax and look at our menu of insurance options for your business. What’s more, you don’t need to shop around to find the best cover solutions. With BizCover, you’ll get multiple competitive quotes from leading insurers within minutes.
Get the cover
that is right for your business
- Public Liability for a restaurant is, as essential as salt is to your cooking. A mandatory. A staple. A must have in the cupboard. With customers dining on your premises as well as suppliers dropping off stock, there are a number of ways an incident could occur that opens up liability. You’ll not only protect yourself from accidents or injuries but also food poisoning incidents, which could leave you spewing at the cost of a claim! Even if you don’t own the building your landlord may require you to have it.
- Business Insurance doesn’t cover the ambience of your restaurant, unfortunately, but at least your building (if you own the building), chairs and tables, general property, glass, machinery breakdown and so on will be covered. If you’re unable to open for a period of time for whatever reason, you can also choose to be covered for business interruption.
- Management Liability provides cover for a number of issues a restaurant may encounter, for example, protection for OH&S fines, employee theft, and any discrimination or unfair dismissal, EPA fines and penalties
- Tax Audit will ensure you can keep counting the cash in the register while an accountant prepares your documents for an audit by the ATO.
- Cyber Insurance , the new super food of insurance, is becoming a necessity for all types of small businesses who take electronic payments or manage customer data.
Restaurants & Cafes
There is no end to the list of possible accidents that could happen in the restaurant environment, and you need to protect your business from any potential claims. These could arise from a waiter dropping hot food on a customer, to a customer slipping on a melted ice-block on the floor, or a supplier tripping on the plastic mat in the prep area, and even unthinkable issues like broken teeth being found in food (true story). Yuck!
Food poisoning is also a huge risk for restaurants and cafes – imagine the risk to brand reputation and impact on trading from a food poisoning incident – a dodgy piece of fish or a bout of salmonella could turn your cash cow into curdled milk!
Even though you can’t insure the ambience you have created in your restaurant, you can insure the building and all its contents:
- Building – if you own the building you will want to be able to rebuild or restore quickly. Water damage (pipes burst) or fire (in the kitchen) is a high risk area.
- Contents – protection for damage to your chairs, tables and other fittings.
- Machinery breakdown – if you depend on your fridges to keep food fresh you will want to ensure you have cover for them. You can even get an extension to cover loss of stock – so if your fridge motor burnt out and your food was spoiled you can include the cost of these items in your claim.
- Business interruption – continuity is important in a restaurant. What happens if there are major power outages? Not just immediate impact of days of trading but also potential loss of custom from customers who don’t return.
If you have employees in your restaurant, you’ll need to cover all your (pizza) bases!
- Ensuring fair treatment in all areas of business is important e.g. protection against bullying and harassment, discrimination and unfair dismissal, EPA Fines.
- OH&S is also an important part of running a restaurant – management liability provides cover for this.
- Correct disposal of waste and garbage is important for small businesses and like all restaurants you will be dealing with grease – if a team member inadvertently disposed of this incorrectly you could be fined.
- While we like to think of all employees as good people, theft in small business is commonplace. Management liability protects against such instances.
As a restaurant owner you have enough to keep you busy day and night. Take the stress out of an ATO investigation with this insurance.
As a restaurant owner your exposure could be at the payment desk – with your eftpos machine hacked.
A busy restaurant in the city had an off day and served some fish that wasn’t quite right. It resulted in five of their loyal customers being poisoned and becoming violently ill! They were each paid out $20,000 for their medical treatment and damages.
Power cut palaver
A pro-longed power outage whilst the shop was shut caused the stock of a local fish and chips shop to be ruined (including food, ice creams and drinks). The clients claim was settled for $2,373. Less the $500 discount, the client received $1,873.
3 things to ask yourself
when buying insurance
- What are the requirements by your landlord for Public Liability?
- The ATO are cracking down on Small Businesses – have you considered tax audit insurance?
- When calculating the value of your contents, don’t just think about the big ticket items – remember it will cost you money for every fork and spoon you have to replace if your restaurant was wiped out by a fire, so ensure you have included everything on your list.