Pub and Restaurant Insurance
From a traditional, 16th-century inn to an ultra-modern restaurant in the coolest part of town, a mobile catering van at a festival or a takeaway that serves the community, food and drink outlets are a specialised form of industry. To match the challenges and unique requirements that this sector has, you need a specialist and bespoke insurance portfolio that is designed to provide you, your business, and your customers financial protection and total peace of mind.
At Business Insurance Service, we recognise the very specialised challenges that you face on a daily basis, and have developed a brokerage service that understands the unique needs and requirements of the hospitality industry. Our brokers are used to helping people like you create tailor-made insurance portfolios specifically designed to suit your business and your budget. Pubs and restaurants have similar business models, especially as most pubs now also serve food.
What insurance does a pub or restaurant need?
Employer’s Liability Insurance – this is the only mandatory insurance that businesses need to have and applies to any business that employs staff, even if they are members of the family, part-time workers, or sub-contractors. Failure to have adequate ELI in place could result in a hefty fine.
Public Liability Insurance – PLI is a business necessity, protecting you and your business against the financial cost of personal injury claims or damage to property. This covers slips, trips, and falls, or food poisoning or sickness as a result of eating contaminated food, or damage to customers’ vehicles in car parks. Bear in mind that you will need to comply with all the clauses in your PLI policy, and avoid problems such as overcapacity.
Products Liability Insurance – this protects you against claims brought as a result of accidental injury or damage resulting from a product sold by you or your establishment.
Buildings and contents insurance – bear in mind that normal Buildings and Contents is not designed for commercial establishments, so you will need to look for cover that specifically caters to the hospitality industry and includes clauses that cover employee’s personal effects, stock (including cellar contents) and equipment breakdown.
Deterioration of Stock – this will cover the cost of the contents if your chillers fail and the contents spoil.
Business interruption cover (Loss of Income) – if you cannot operate for any reason (such as a fire, flood, or criminal damage) then business interruption will make sure you have an income to cover expenses and bills while you’re getting back to normal.
Loss of Licence – Loss of licence insurance can offer protection following the suspension, withdrawal or forfeiture of your alcohol licence due to licensing regulations or refusal to renew by the licensing authority. It could cover you for both loss of profit and other expenses reasonably incurred to maintain your gross profit
Insurance Risks for Pubs and Restaurants
Late opening hours, the risk of intoxicated patrons, crowded premises, and those busy, boisterous live music nights – pubs and restaurants all face a special set of circumstances that bring with them the potential for commercial risks. While in the majority of cases the evening will pass off without incident, there is always the chance that a problem could arise that could result in injury or damage to property. In those instances, pubs, bars, and restaurants need to have the right kind of insurance in place to protect their financial assets – and their reputation.
As a pub or restaurant owner, you are responsible for property that may not be covered by traditional insurance. Goods in transit and stock throughput cover can fill these gaps in commercial property protection. Without these forms of insurance, property that’s unique or valuable, in transit, in your temporary care, stored at fixed (but movable) locations or used to transfer information represent major exposures. Specifically for restaurateurs, goods in transit and stock throughput insurance can provide much-needed protection for accounts receivable, computer equipment, data and records, food transported to various locations and food trucks.
Restaurants and Pubs are common targets for cyber-criminals, as these businesses often process a high volume of payment card information. In addition, employees who are improperly trained on computer and data safety could put your organisation at risk to ransomware, viruses, phishing scams and malware. Compounding your exposures, many restaurants offer guest wi-fi that, if improperly secured, can put you and your guests at risk of an attack.
On-site accidents at restaurants can lead to costly employers’ liability claims. Complicating matters, there are a number of risks to account for, including cuts and burns; slips, trips and falls; ergonomic-related hazards; workplace violence; and drive-thru exposures. Things like improper lifting techniques, poor knife safety and inadequate training can all cause your employees to suffer an injury on-site—generating costly consequences.
Continuity is critical in business, and there are few things more important than continuous revenue and cash flow, particularly for small to mid-size organisations. In fact, just one brief business interruption can be incredibly costly for an organisation, often leading to serious reputational damages or long-term closures. Common interruptions for restaurants can include natural disasters, fires, food recalls, cyber-incidents, staff shortages and supply chain issues.
Mobile catering vans and takeaways
For mobile catering outlets and takeaways, the types of commercial insurance are practically identical to bars and restaurants. Mobile operators may need to bear in mind that their insurance may only be valid as long as they comply with all local licencing regulations and Public Health certification.
How can we help your pub or restaurant?
At Business Insurance Service, we know how challenging and complex the hospitality industry can be. Add in copious amounts of alcohol and the risk factors increase considerably. That’s why we work with the UK’s best insurance providers to find the very best insurance portfolios at the best prices.
While comparison sites such as ours, are good for simple, straight forward insurance products, they often only provide limited information with regards to other options available and nor can they negotiate on the cover offered with insurers, like our brokers can. We act as your brokers to ensure your cover is tailored to your specific needs and meets your budget too. Remember – cheapest isn’t always best, so we will always present you with all the facts first before you make your final decision.