Restaurant insurance UK — the complete, practical guide to the cover you need, how much it costs, and how to buy confidently

Running a restaurant in the UK means juggling food safety, staffing, expensive equipment and customer service — and facing real financial risk if something goes wrong. The right insurance package protects the business, the people who work there and the customers who rely on you. This guide explains exactly what cover restaurants need, why each element matters, how insurers price risk, typical cover limits, common policy traps, and a step‑by‑step buying process so you get the protection you need without paying for things you don’t.

Why restaurant insurance matters now

A restaurant is exposed to physical risks (fire, flood, theft), liability risks (customer injury, food poisoning, product recalls), and financial risks (interruption to trading after damage). Without appropriate cover, a single claim or a sustained closure can threaten insolvency. Responsible operators therefore treat insurance as a core part of running the business not an optional extra.

The core covers every UK restaurant should consider

Public liability insurance
Public liability protects your business if a customer or member of the public is injured, or their property is damaged, because of your activities (for example, a slip on a wet floor, or burn from spilled hot food). Many venues and corporate clients will ask to see a public liability certificate before allowing you to trade or supply. Typical requested limits start at £1 million, but for larger venues or corporate contracts you may be asked for £5 million. (Guidance for event and site requirements varies; always check organiser requirements.)

Product liability insurance
Product liability covers claims arising from food you supply for example allergic reactions, food poisoning, or contamination. For restaurants and takeaway suppliers this is essential because a single contamination incident can lead to multiple claims and reputational damage. Many restaurant packages include product liability within the same policy or as an add‑on.

Employers’ liability insurance
If you employ anyone, you must have employers’ liability insurance. The legal minimum in Great Britain is cover for at least £5 million, and the certificate must be displayed where employees can see it. Failing to have this cover can lead to fines. Many insurers offer £10m as standard; check your obligations and display the certificate or make it electronically accessible to staff.

Contents and equipment insurance
This covers kitchen equipment, furniture, tills, refrigeration and other fittings if they are stolen, damaged or destroyed. For restaurants, where equipment can be costly and vital to trading, this is a priority. Check whether cover includes accidental damage and breakdown (often available as extensions).

Business interruption insurance
Business interruption replaces lost income if your restaurant cannot trade following an insured event (fire, flood, etc.). Specify an indemnity period (12, 18, 24 months are common choices) and make sure the sum insured reflects the revenue you must replace underestimating here is a common mistake.

Stock and spoilage cover
Cover for perishable stock lost through refrigeration failure, power cut or contamination. This can be included as an extension and is important for restaurants with high value chilled/freezer stock.

Legal expenses and tax enquiries cover (optional but useful)
Covers legal defence costs, employment disputes, and sometimes investigations by HMRC or environmental health actions. These add valuable protection where legal costs could be crippling even if you are not at fault.

Typical limits and realistic budgeting

• Public/product liability: many small restaurants start with £1–£2 million but be prepared to increase to £5 million for council contracts, large events, or supermarket/retailer supply agreements. 
• Employers’ liability: statutory minimum is £5 million, but £10 million is usual in market practice. Failure to hold EL cover can lead to large fines and penalties. 
• Contents/equipment: set the insured sums to reflect replacement cost (not historic cost).
  Premium expectation (very approximate): small independent restaurants with modest turnover often pay low‑thousands annually for a combined package; exact price depends on turnover, cooking methods, location risk (flood, crime), claims history and safety procedures.

What affects your premium and how to reduce it (legally)

Underwriters price on risk. The main factors are:

• Annual turnover (volume drives exposure).
• Cooking methods (open flame, deep‑fat fryers and LPG increase risk).
• Claims history and previous cancellations.
• Location and building construction (listed buildings, shared buildings, ground‑floor flood areas).

Food hygiene standards, staff training and documented procedures (HACCP, allergen training). Insurers reward good controls with lower premiums.
To reduce premiums without risking cover: strengthen documentation (HACCP logs, staff training certificates), install appropriate fire suppression and PAT test records, improve security (alarms, CCTV), and shop around at renewal. Never under‑declare turnover or hide previous claims that will invalidate cover. 

Common policy traps and wording to check carefully

• Definitions of “food poisoning”, “contamination” and “recall”: narrow definitions can exclude many real events.
• Public/product liability aggregate vs per‑claim limits: ensure the limit is sufficient for a multi‑claim contamination event.
• Exclusions for non‑compliance: some policies exclude claims caused by statutory non‑compliance (eg ignored food‑safety notices).
• Business interruption bases: indemnity period, and whether payroll and fixed costs are included.
• Territorial limits: check whether your policy covers export sales, catering off‑site or trading at overseas festivals.
  If a clause is unclear, ask for a written clarification from the insurer or get broker advice.

Buying routes which one to pick

• Specialist hospitality insurers and trade association schemes (e.g., NCASS) understand restaurant risks and often offer tailored covers and event‑accepted certificates. NCASS schemes also include member benefits and are widely recognised by markets and venues. 
• Comparison sites/aggregators provide quick quotes and a useful market baseline but may not place complex or high‑risk covers reliably. Use them for price benchmarking.
• Brokers or MGAs are best for complex risks (multiple sites, high turnover, supply contracts, bespoke extensions like product recall). A good broker will explain policy wordings and negotiate endorsements.
  Recommended workflow: get two comparison quotes to gauge price, then run final placement through a specialist broker if you have anything other than a straightforward low‑risk operation.

Step‑by‑step buying checklist (do this in order)

1. Calculate accurate turnover and list all trading activities (dine‑in, takeaway, delivery, wholesale).
2. Identify hazards: cooking methods, storage, allergens, customer flow and building risks.
3. Decide minimum limits required by landlords, council or corporate clients; get them in writing.
4. Obtain at least two market quotes and compare policy wordings (not just price).
5. Add product liability and employers’ liability as required; check business interruption indemnity period.
6. Ask for endorsements for contamination/recall if you sell prepacked goods or supply retailers.
7. Keep certificates, HACCP/allergen records, PAT/gas safety and staff training documents together organisers and insurers will request them.
8. Review annually and at any material change (menu, kitchen refit, change in turnover or adding delivery/retail supply).

Food safety, allergens and product recall the insurance angle

Food businesses face unique exposure: an undisclosed allergen or contamination event can cause multiple hospitalisations and mass claims. UK rules require allergen information for non‑prepacked foods; practical proof of compliance (menus, staff knowledge, signage) reduces insurer concern and helps defend a claim. If you supply retailers, insist on product recall and contamination extensions recall costs (alerts, retrieval, disposal) can be significant and are often excluded from basic packages unless added. (Regulatory and trade guidance emphasise allergen responsibilities; maintain accurate supplier records and HACCP systems.)

Claims: how to behave to protect the business and speed settlement

If an incident happens:

• Prioritise safety and medical attention.
• Record everything: witness statements, photos, transaction logs, batch/packaging details. Preserve any remaining product.
• Notify insurer immediately (follow the claims procedure in your policy).
• Share HACCP, staff training and maintenance records promptly.
  Honesty and documentation significantly improve your chance of smooth settlement; delayed notification or missing records increase dispute risk.

Practical examples (realistic scenarios)

1. Small bistro (annual turnover £200k): standard package £2m public liability, product liability included, contents cover for equipment, business interruption for 12 months. Install fire suppression and maintain PAT/gas certificates to reduce premium.
2. Restaurant supplying local retailers: add product recall extension and increase product liability to £5m; work with a broker to secure recall cover and confirm supply contracts’ indemnity requirements.
3. Multi‑site operator with delivery: ensure employer’s liability across all sites, consider cyber insurance for card‑payment vulnerabilities, and set higher business interruption sums for multi‑site revenue protection.

Where to get reliable help and guidance

• NCASS: sector guidance, training and recognised insurance schemes for caterers and hospitality operators.
• GOV.UK: legal requirement and guidance for employers’ liability insurance. 
• HSE / local authority environmental health: food safety, registration and compliance checks. 
• BIBA (British Insurance Brokers’ Association): find a regulated broker. (Regulated advice is valuable for complex cases.)

FAQ — short, sharp answers

Q: Is employers’ liability legally required?
A: Yes if you employ people in Great Britain you must have employers’ liability insurance (minimum cover frequently stated at £5m); display or make the certificate available to staff. 

Q: Do I need product liability?
A: Strongly recommended and often required by venues/retail buyers product liability protects against claims from food you sell (allergic reactions, food poisoning). 

Q: What limit should I choose for public liability?
A: Many small restaurants start with £1–£2m, but be prepared to supply £5m for large events, councils or corporate supply contracts — always check the specific requirement in writing.