Insurance is only there when you need it, right? Like so many things in business, it’s something you sign up to diligently, and then file away in the hope it’ll never be required.

Right now, you might have those policies at the back of your mind. Ideally, you won’t need to call on them, but regardless of the current situation at your restaurant, it’s advisable to take some time out to review your insurance policies.

There are lots of fantastic insurance providers out there who offer great, fair and comprehensive cover. But it’s sometimes possible (through no fault of your own) to pick insufficient insurance.

With that in mind, here are a few vital elements your restaurant’s insurance cover should include.

Income protection

If you’re a smaller operator and have taken a significant personal interest in the business, income protection insurance will support your family if you can’t work.

Start here and make sure the level of cover will suffice should the worst happen.

Theft and burglary

Most insurance policies will include a level of cover for the amount of ‘cash on premise’ you’re likely to have at any one time. Does your policy cover enough? If anything, it could potentially be reduced – particularly if you’re now taking more payments via card and contactless.

Public liability

This will cover your business for the compensation and legal costs should something happen and result in the death or injury of someone on your premises.

It’ll include big figures, but it’s important to consider whether $20 million, for instance, is simply too much. Equally, it’s important to check for the inclusion of product liability, which covers products you sell but which are consumed elsewhere (for instance, condiments, sauces, coffee beans, etc).

Worker compensation

This is compulsory; everyone who works for you should be protected by your insurance.

Make sure they are and take into account anyone with whom you have informal pay arrangements via external contractors. Are they covered under your insurance?

Loss of profits and stock

If you can’t operate for a reason beyond your control, you might be able to claim for loss of profits.

The important thing here is that you’ll need rock-solid accounts in order to refer to the exact profit you’ve made and a forecast of what you could have lost.

Loss of stock is also important, although sometimes expensive when it comes to insurance. This is partly because proving a loss of stock is tricky. Regardless, if the cover is there, it’s important to find out what you’re expected to do in order to keep your end of the bargain in terms of records.

Equipment cover

Restaurants require a lot of equipment in order to provide the best service, and if it breaks down, the customer experience can be significantly damaged.

What equipment is covered under your insurance? Does the responsibility fall with the equipment providers and their respective warranties? Make sure you know where you stand with every piece of equipment so that you know where to turn should something go wrong.

Wrapping up

We’ve covered the key areas above, but it’s important to remember most insurance policies go much deeper.

However, this is a great starting point. Is your insurance cover missing any of the above? Even if it’s just one element, it’s probably one element too many.

Start by speaking to your existing provider and get their view on the lack of that cover element. If you’re unsatisfied with their response, try shopping around; you might even find a better, more cost-efficient type over cover just by looking a little further afield.



H&L POS – working with you to help you grow your business
H&L POS has been delivering POS solutions with extensive back of house and staff management systems to the hospitality industry for more than 30 years. As hospitality people at heart, H&L understand the critical requirements for each food and beverage operation. We have staff in every state of Australia providing direction and advice as you grow and as technology changes.
Call us at 1800 778 340, email or fill in the form below to discuss your venue’s needs.