What Kind of Insurance Do You Need For a Restaurant or Café?

From bunny-chows to Boerewors, to shawarmas and steak rolls – South African restaurant cuisines are a diverse array of traditional and exotic, without counting coffee shops and quaint cafes.

As a restaurant owner, you’re very aware of the fast-paced industry and daily rushes, stock deliveries and customer interactions – just some of your daily operations. You barely have time to ensure all aspects of your business are in tip-top shape, and finding the right insurance often takes a backseat.

It’s devastating to let all your hard work and effort be for nought because of an accident or third-party claim. And without Restaurant insurance in place, such an event would likely close your doors indefinitely, or forever.

Below, we’ll briefly focus on the potential dangers posed to your restaurant/cafe/bar, and the types of insurance cover that will protect you, your employees, and your business.

Is Restaurant Insurance Important For My Business?

If you had to describe the Restaurant industry, it would include words like rapid and breakneck. No two days are the same, with a great deal of activity happening in both Front and Back of House.

Between kitchen staff and employees, customers, deliveries, and other potential public interactions, your business is constantly being exposed to risk and possible injury.

For example, a customer could get injured and need medical assistance due to negligence on your part, leading to expenses that could be a large blow to your finances without insurance cover.

Restaurant insurance will shield your business operations from claims and expenses that would otherwise potentially cripple your growing company. We’ve summarised the 4 main dangers exposed to your operations and why Restaurant insurance is essential.

Claims and Lawsuits

Anyone who has worked in the Hospitality industry knows how easy it is to be accused of injury on your premises or sickness from your food. As a restaurant owner, having insurance protects you from the expense of legal procedures or claims made against you by a customer.

Debt and Bankruptcy

As a small business, you probably had to take out loans and other means of financing to launch your restaurant or bar. At the very least, it’s rare for restaurant owners to have enough capital to completely start again or have large unexpected costs.

Disasters happen all the time, from flooding to accidental fire damage, and without Restaurant insurance, the expense of a catastrophic event would be devastating.

Equipment and Your Premises

To run your business at the best possible standard, you had to invest in expensive equipment for your kitchen and premises. If one machine needs to be replaced or even repaired, the cost alone could seriously shake your financial bottom line.

Without an insurance policy, you may not have the means to immediately address the issue and cause strain in running your business.

Reputational Protection

There are cases where customers have made a claim against restaurant owners and lawyers are needed to settle the dispute. Restaurant insurance will help pay the costs of such an event.

Most importantly, it will help resolve the claim rapidly and amicably. Preventing long, drawn-out cases or trials will ultimately save you from the publicity that would inevitably come.

What Types of Insurance Should Restaurant Owners Consider?

Restaurant insurance is often a combination of different types of cover, and it all depends on the size of your business, the number of employees, your turnover, etc.

One of the daunting aspects most restaurant owners face is in finding the right policy for them. We’ve helped make that process an easy one at Bi-Me, by comparing multiple quotes and packages for you and assisting you in the process of soundly insuring your business.

What Are The Common Types of Cover For Restaurant Insurance?

Public Liability Insurance

Public Liability insurance protects your business if a customer, supplier, or member of the public is injured or suffers property damage as a result of your negligent business activities. It can also extend to cover Product Liability and Defective Workmanship. Public Liability claims are typically made by customers of your business.

Public Liability also protects your customers, visitors, and other public members from injury or damage suffered on your property, making this type of insurance essential for any small business.

Contents Cover

Contents insurance covers the items inside your buildings from loss due to fire, weather, natural disasters, etc. This type of business insurance is critical to have as a restaurant owner. Damage or destruction of equipment, machinery, and valuable property within your premises would cost more than most business owners can pay alone.

Building Cover

In the event your building and premises are damaged or destroyed, Buildings Insurance covers the cost of repairing or rebuilding after damage from fire, storms, explosions, lightning, etc.

There’s no good insuring all the items inside your building if you can’t repair your premises due to lack of cash flow and Building cover.

Business Interruption Cover

If you have to halt business operations – The Business Interruption cover protects you from the loss of income and increased costs of running your business caused by events such as property damage from storms or fire.

Business Interruption insurance is paired with Buildings or Contents insurance, as you need something tangible to insure.

Glass Cover

For many restaurant owners, Glass Cover is an important addition to your policy due to the massive costs of the replacement of glass planes and other external and internal glass fixtures. What may look exquisite and inviting with open plane glass will be a massive risk if left uninsured.

Machinery Breakdown Cover

If any of your machines were to break down or need replacement, your business operations will likely suffer or come to a halt until your equipment issue is resolved.

Machinery Breakdown insurance will protect you from any unexpected equipment malfunction or repair. From freezers and oil-fryers to coffee makers and air-conditioning, your business relies on machinery to run. For restaurants and other food-related businesses, Machinery Breakdown insurance is one of the most important.

Find The Right Insurance For Your Restaurant With Bi-Me

Restaurant insurance doesn’t just serve you peace of mind, it also gives you a fail-safe to properly focus on running a successful business.

At Bi-Me, no policy is too small. With our simplified online process, you can immediately compare and buy the insurance that will fit your business like a glove.

Contact us to find out how you can cover your small business and protect it from the unknown elements.

*This is general information only and does not take into account your financial situation, needs, or specific objectives. As with any insurance, cover will be subject to the terms, conditions, and exclusions contained in the policy wording.