Running a restaurant is exciting, fast-paced, and full of moving parts – quite literally. One minute you’re plating mains, the next you’re managing orders, training new staff, or dealing with a fryer that has chosen the worst possible time to spark an attitude. Among all this, insurance can sometimes feel like a boring admin task that gets pushed to the back of the to-do list. But the right cover can be the difference between a minor setback and a business-stopping financial blow.
Whether you run a small café, a neighbourhood takeaway, a busy city restaurant or a delivery-only kitchen, understanding what insurance restaurants need, what’s legally required, and how much restaurant insurance costs is, is essential to protecting your business properly. This guide breaks everything down simply with no complicated policy talk, just clear information so you can make confident decisions.
What Is Restaurant Insurance?
Restaurant insurance is a specialised form of commercial cover designed specifically for businesses that handle food, serve the public, and employ staff. It acts as a financial safety net against the unexpected, things like customer slips, food-related claims, kitchen fires, equipment failure, and staff injuries. Instead of paying those costs out of pocket (which for many businesses would be devastating), insurance absorbs the risk and helps keep your operation running.
Think of it like keeping a spare tyre – you hope you never need it, but you’ll be glad it’s there when something goes wrong.
Restaurant insurance sits under the wider umbrella of commercial insurance, which protects business buildings, contents, equipment and income. You can explore more about commercial insurance here.
Commercial Property Insurance – What It Means for Restaurants
Commercial property insurance protects your physical premises against damage, loss or disruption. In restaurant settings where heat, cooking, heavy equipment and high footfall are part of daily life, risk exposure is naturally higher. Fires, floods, vandalism and theft are some of the most common causes of claims, and even a small incident can force temporary closure.
It covers things like:
- Structural damage to the building
- Damage to fixtures, fittings, equipment and furniture
- Loss of stock after an insured event
- Replacement or repair costs
- Potential loss of rental income (if leased out)
For restaurants ranging from cafés to gastropubs, this type of cover provides security, ensuring the venue you operate in, the very place customers gather, is protected. Without it, the financial burden sits entirely with the business owner, and repairs post-incident can cost thousands.
How Much Does Commercial Property Insurance Cost?
There’s no one-price-fits-all answer. How much it costs to insure a restaurant depends on several factors, including:
- Business size and property value
- Location (high-risk areas can increase premiums)
- Type of cuisine (riskier equipment like fryers can affect pricing)
- Whether alcohol is served
- Claims history
- Security measures in place
Restaurants and multi-tenure buildings often sit at the higher end of premium scales because of increased risk exposure. However, Policy Powerhouse helps owners manage affordability with flexible 3, 6 or 12-month commercial cover options, making budgeting easier and insurance more accessible. This flexibility means you can choose a level of protection that fits your business now, with room to adjust as you grow.
What Insurance Do Restaurants Legally Need?
Good news – only one form of restaurant insurance is legally mandatory across the UK:
Employers’ Liability Insurance
If you employ anyone (full-time, part-time, seasonal, or even casual staff), you must have employers’ liability cover by law. Minimum legal cover is £5 million, and failure to have insurance can lead to fines of up to £2,500 per day per uninsured employee. Considering kitchens can be hazardous environments (hot pans, sharp knives, slippery floors) this policy isn’t just legal protection, it’s practical protection for your team.
Additional legal requirements depending on operations:
| Activity | Required Insurance |
| Employing staff | Employers’ Liability (mandatory) |
| Using vehicles for delivery | Business Motor Insurance |
| Serving customers | Public Liability (commonly expected, sometimes required by councils) |
While public liability isn’t legally required nationwide, many landlords, councils and events will insist on it, and realistically, any restaurant open to the public should have it.
What Other Insurance Do Restaurants Need?
Aside from what the law requires, several policies are strongly recommended to protect against everyday risks in food service. Kitchen environments move fast, involve heat, equipment, customers and staff, so the risk cocktail is ready-made.
Core recommended cover includes:
- Public Liability Insurance – protects you if a customer is injured or property is damaged on-site (slip claims are extremely common).
- Product Liability Insurance – covers food-related claims such as allergic reactions or food poisoning.
- Contents & Equipment Cover – for ovens, fridges, POS systems and other essentials.
- Business Interruption Insurance – replaces lost income if you must close due to fire, flood or other insured incidents.
- Stock Insurance – protects perishables such as meat, dairy and produce.
A single kitchen-equipment failure could wipe out fridges’ worth of stock. Insurance steps in so the loss doesn’t hit your wallet.
Common Risks Faced by UK Restaurants
Restaurants face unique risks that differ from typical retail or office environments. Hot kitchens, sharp tools and constant customer interaction all increase exposure.
The most common risks include:
- Public liability claims – e.g. a customer slips on a wet floor
- Food-related claims – food poisoning, contamination or allergens
- Fire and flood damage – especially in commercial kitchens
- Equipment breakdown – ovens and refrigeration failure
- Employee injury – cuts, burns, slips, strains
Here’s a simple snapshot table:
| Insurance Type | What It Covers | Examples |
| Public Liability | Injury/damage to customers | Slips, spills, hot drink accidents |
| Employers’ Liability | Staff injury/illness | Kitchen accidents, burns, cuts |
| Product Liability | Food-related claims | Allergic reactions, contamination |
| Property & Contents | Damage to building/stock | Fire, flood, theft |
| Business Interruption | Loss of income during closure | Repairs after fire or flood |
Restaurants that understand these risks can choose to cover more confidently, avoiding over-insurance and preventing dangerous under-insurance.
How Much Does Restaurant Insurance Cost?
If you’re wondering how much restaurant insurance costs, the answer depends on business size, risk, and policy level. Small cafés with a handful of staff usually pay less than large restaurants with heavy footfall or alcohol service.
Prices vary based on:
- Number of employees
- Value of stock and equipment
- Type of food prepared
- Location and building type
- Fire safety and extraction systems
- Claims history
A restaurant with deep-fat fryers will often cost more to insure than a small coffee shop. The goal isn’t to find the cheapest policy, it’s to find one that protects you properly when you need it.
How to Choose the Right Insurance Policy
When comparing options, focus on what genuinely matters to your operation. A cheap policy is only cheap until a claim isn’t covered.
Ask yourself:
- Could we afford to replace all equipment if damaged?
- How long could we operate without our premises?
- What happens if a customer has an allergic reaction?
- Do councils or landlords require specific cover levels?
- Do we need seasonal cover or year-round protection?
Restaurants evolve, new staff, new menus, outdoor seating, deliveries, and insurance should evolve with you. Review annually, or sooner if the business changes.
Policy Powerhouse helps make that process simple, transparent and stress-free. With access to specialist cover for food businesses and non-standard risks, restaurant owners can get support tailored to their needs, not a generic one-size-fits-all policy.
FAQ
- Do restaurants need insurance?
Yes. Insurance protects restaurants from customer accidents, staff injuries, property damage and food contamination claims. Employer’s liability is legally required if you hire staff. - What insurance do restaurants need?
Most restaurants benefit from public liability, employers’ liability, product liability, contents cover, business interruption and stock insurance. - Is restaurant insurance required by law?
Employer’s liability insurance is mandatory for businesses with staff. Public liability isn’t legally required nationwide but is strongly recommended and often expected. - How much does restaurant insurance cost?
Costs vary based on size, risk, equipment value and cover needed. Small cafés often pay less, while larger kitchens with deep-fat fryers may pay more. - What affects the cost of insuring a restaurant?
Cuisine type, fire safety measures, staff numbers, alcohol sales, location and claims history - Does restaurant insurance cover kitchen equipment?
Yes, if contents or equipment cover is included in the policy. - Is public liability insurance necessary for a restaurant?
It may not be legally required everywhere, but practically yes, it protects against costly claims if a customer is injured.
Conclusion
Running a restaurant comes with creativity, passion and responsibility. The right insurance gives you freedom to focus on the food, customers and growth rather than worrying about worst-case scenarios. With specialist cover tailored for restaurants and food-service businesses, Policy Powerhouse helps owners protect their staff, customers and premises with confidence.
A well-protected restaurant is a resilient restaurant. Your business works hard, so your insurance should too.
Explore commercial insurance options at Policy Powerhouse and find the right cover for your restaurant today.
