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Restaurant business insurance

Restaurant insurance NZ

Restaurant insurance refers to a specialized type of business insurance tailored to meet the unique needs and risks of running a restaurant. Just like any business, restaurants face specific challenges – from potential kitchen fires to customer injuries. By obtaining restaurant insurance, restaurant owners protect their assets and operations against unforeseen events that might lead to financial loss.

Why is restaurant insurance important? 

The hospitality industry, particularly restaurants, operate in a dynamic and potentially hazardous environment. Apart from serving delicious meals, restaurant owners are also responsible for the safety of their customers, staff, and property. Restaurant insurance acts as a safety net, ensuring that in case of unexpected events like property damages, employee injuries, or legal claims, the business can continue without suffering severe financial losses. 

In New Zealand, the average cost of restaurant insurance typically ranges between $200 – $400 per month. 

It’s crucial to have restaurant coverage if your business:

  • Serves alcohol to customers
  • Has on-site cooking facilities
  • Provides outdoor dining areas
  • Rents or owns the building space

What covers are typically included in restaurant insurance? 

Public Liability

This policy covers common restaurant business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.

Best For
  • Business Accident Coverage
  • Third-party Damages
  • Legal Cost Protection

Statutory Liability

This cover is a type of protection that helps restaurants cover costs if they accidentally break certain laws or regulations.

Best For
  • Unintentional breaches protection
  • Legal costs
  • Fines and penalties

Business Contents Insurance

Business contents insurance in NZ is for protecting all the important stuff inside a restaurant. If there’s a problem or accident, the insurance can help with the expenses.

Best For
  • Accidents 
  • Floods
  • Fires

Stock Insurance

Stock insurance in NZ is a type of coverage that helps protect restaurants from the loss or damage to the items they sell.

Best For
  • Mishaps 
  • Natural Disasters
  • Fires

Employers Liability

This insurance helps protect restaurant businesses from financial losses if an employee suffers injuries or illnesses at work.

Best For
  • Workplace injuries
  • Legal expenses
  • Compensation payments

Employment Disputes

This insurance in NZ covers restaurants legal costs and other expenses arising from disagreements between employees and their restaurant employers.

Best For
  • Mediation costs
  • Legal expenses
  • Settlement fees

Building Insurance

Building insurance in NZ is a type of coverage that helps pay for repairs or rebuilding if your building or commercial property gets damaged. 

Best For
  • Accidents 
  • Natural disasters
  • Fires

Business Interruption Insurance

Helps protect restaurants when they face unexpected events, like natural disasters or fires, which lead to temporary shutdowns or disruptions in their operations. It covers loss of income and additional expenses incurred during the interruption period.

Best For
  • Income loss 
  • Extra expenses
  • Temporary shutdown 

How much does restaurants insurance cost?

Restaurant insurance premiums are calculated on several different factors including:

  • Types of cover
  • Turnover
  • Location 
  • Claims History 

Restaurants insurance in NZ typically costs between $200 to $400 per month

Who needs restaurant insurance?

Any establishment that prepares and serves food to the public should consider restaurant insurance. This includes:

  • Full-service restaurants
  • Cafés and coffee shops
  • Takeaway outlets
  • Food trucks
  • Pubs and bars
  • Catering businesses

Yes, every restaurant, regardless of its offerings, faces risks such as kitchen mishaps, customer accidents, or property damages. Insurance ensures protection against these unforeseen events and potential financial repercussions.

No, however it is highly recommended as restaurant insurance typically covers damages to specialized kitchen equipment. However, the specifics depend on your policy. It’s vital to ensure that all unique equipment is listed and appropriately valued in your policy to guarantee full coverage.

How do I get proof of restaurant insurance

You can usually get proof of restaurant insurance same day when you purchase insurance through Gerrards.

Acquiring a restaurant insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or lease.

To obtain insurance coverage promptly, contact one of our restaurants insurance brokers. We may require you to provide some fundamental details about your business, such as:

  • The name of your business
  • The total number of employees
  • Predicted annual income
  • Years of experience in the industry

What does restaurant insurance not cover?

Intentional Acts

Insurance doesn’t cover deliberate damage or harm caused by the restaurant owner or employees.

Employee Dishonesty

Losses due to theft or fraudulent activities by employees might not be covered unless you have a specific fidelity coverage.

Natural Wear and Tear

Regular aging or deterioration of equipment, furniture, or the building isn’t covered.

Other common questions about restaurants insurance

General liability covers claims related to injuries or damages suffered by a third party within your premises. For instance, if a customer slips and falls, this would be the coverage to tap into. On the other hand, property insurance protects the physical assets of your restaurant, such as equipment, furniture, or the building itself, against damages from events like fires or storms.

Yes, the general liability component of your restaurant insurance will typically cover claims arising from food poisoning incidents, ensuring that legal or medical expenses are taken care of.

Standard restaurant insurance might not cover delivery vehicles. For this, you would need commercial auto insurance to protect against potential damages or claims arising from delivery vehicle operations.

It’s advisable to review your insurance policy annually or whenever there’s a significant change in your restaurant operations, such as expanding your space, adding new services, or changing your menu significantly.

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