Buying a Home
Remortgaging
Landlord
Specialist
Secured Loans
Debt Consolidation
Conveyancing
Finding a Solicitor
Business Insurance
A restaurant carries risks a standard business policy doesn't anticipate - a working kitchen, food handling, alcohol licensing and, increasingly, delivery riders coming and going all day. This guide explains what restaurant insurance typically covers, what drives the cost, and how to choose the right combination for your kitchen.
Restaurant insurance covers a UK food-service business against the risks specific to running a commercial kitchen and serving the public. It's not one policy, but a bundle of covers packaged together, typically including:
Restaurants that serve alcohol, offer delivery, or have outdoor seating usually need additional cover on top of these core policies, since a standard small business policy doesn't automatically account for those risks.
If you're comparing restaurant insurance UK options for the first time, it helps to know it isn't one policy but several, bundled together to match the risks a food business actually faces. A restaurant carries risks that a standard business policy doesn't anticipate: a working commercial kitchen, food handling and hygiene obligations, alcohol licensing if you serve drinks, footfall from the public every service, and increasingly, delivery riders coming and going throughout the day.
Restaurant insurance usually combines business insurance covers such as public liability, employers' liability, buildings and contents, and business interruption into one package built around a food-service business. It's sometimes sold under different names, including "hospitality insurance" or "food business insurance", and the same core covers apply whether you run a café, a bistro, or a licensed sit-down restaurant.
Only one type of cover is a strict legal requirement for most restaurants, but several others are effectively unavoidable if you want to trade.
Employers' liability insurance is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969 if you employ anyone, including part-time, casual or seasonal staff. There's no exemption for a small kitchen team.
Public liability insurance isn't a legal requirement in the same way, but it's expected by almost every commercial landlord, and it's the cover that responds if a customer slips on a wet floor or has an allergic reaction to something on your menu. Most restaurants would struggle to get a commercial lease without it.
Beyond those two, food safety and hygiene compliance is overseen by the Food Standards Agency, not by your insurer, though a hygiene problem can still trigger the kind of claim your policy is there to cover. Buildings and contents cover, business interruption cover, and product liability cover for food-related illness claims round out what most restaurants carry, even though none of them is compulsory by law.
Restaurant insurance
Every kitchen is different. An advisor can talk through your setup, whether that's a licensed dining room, a delivery-only kitchen or a small café, and help you compare cover with no pressure to proceed.
Restaurant insurance is built from several distinct covers, and not every restaurant needs all of them. The table below sets out what each one protects and where the common exclusions sit.
Most policies exclude general wear and tear on kitchen equipment, damage caused by a fryer left unattended in breach of the policy's safety conditions, and any alterations to the premises that weren't declared to the insurer. It's worth checking these exclusions closely before you rely on a policy to cover older equipment or a recently renovated kitchen.
Generic small business cover often misses the risks that come with running food service day to day. The four areas below are worth checking specifically, because a standard policy may cap or exclude them without you realising.
If you run your own delivery drivers rather than using a third-party platform, you may also need fleet insurance for delivery vehicles alongside your restaurant policy, since a standard restaurant policy doesn't cover motor risk.
Kitchens that fall outside a mainstream insurer's standard limits - whether that's high-volume frying, unusual cooking methods, or a history of previous claims - don't automatically become uninsurable. A specialist broker with access to a wide range of insurers can often still find suitable cover. It just takes a more detailed conversation about how your kitchen actually operates.
Restaurant-specific risks
Alcohol licensing and loss-of-licence cover
If you serve alcohol, your premises licence under the Licensing Act 2003 can be suspended or reviewed after an incident, which can stop you trading legally even if your building is undamaged. Some restaurant policies offer loss-of-licence cover to help with lost income during a suspension, so ask your advisor whether it's included or available as an extra.
Delivery and takeaway liability
Using platforms like Deliveroo, Uber Eats or Just Eat shifts some liability to the platform, but riders collecting orders from your premises can still be involved in an incident that leads back to you. If you run your own delivery drivers and vehicles instead, that's a separate motor risk your restaurant policy won't cover.
Outdoor and al fresco seating
Pavement licences, patio heaters and temporary structures used for outdoor seating all add exposure that a policy written around an enclosed indoor restaurant may not anticipate. Tell your insurer about any outdoor seating so it's factored into your public liability cover.
Deep-fat fryer and kitchen fire risk
Fryers are one of the biggest fire risks in any commercial kitchen, so insurers commonly attach conditions such as thermostat checks, documented cleaning schedules and a ban on leaving fryers unattended while in use. Kitchens outside a mainstream insurer's eligibility limits, such as high-volume frying, may need a specialist broker instead.
There's no single figure for how much restaurant insurance costs, and a comparison site advertising a low headline premium is usually quoting for a low-risk kitchen, not necessarily yours. Cost is driven by a combination of factors specific to your restaurant. For a broader look at how much business insurance typically costs across different trades, see our guide to how much business insurance typically costs. You can also compare business insurance providers to see how pricing and cover vary across the wider market.
Choosing the right combination of cover comes down to matching your policy to exactly what your restaurant does, not just picking the cheapest headline price. It's also worth checking a few related covers depending on your setup: if your restaurant's trading success depends heavily on one head chef or owner-operator, ask about key person insurance; if you trade as a limited company, consider directors and officers insurance; and if you also own the freehold of your premises or let out flats above the restaurant, look at landlord insurance too.
How to choose
List every activity your restaurant does
Dine-in, takeaway, delivery, alcohol service and outdoor seating are all separate risk categories. Write down everything you do so nothing gets missed when you compare policies.
Check what your landlord or lease requires
Most commercial leases set a minimum level of public liability cover, and some specify buildings insurance responsibilities too. Check your lease before you choose a policy.
Compare liability limits, not just headline price
A cheaper policy with a lower public liability or product liability limit can leave you badly exposed after a serious claim. Compare the limits as closely as the price.
Confirm food spoilage and equipment breakdown cover
If your stock relies on fridges and freezers, check that breakdown and spoilage cover is included rather than assumed, since this is one of the most common small claims in hospitality.
Speak to a regulated advisor about your specific setup
A licensed restaurant with delivery and outdoor seating needs a different combination of cover to a small unlicensed café. An advisor can help match cover to your actual kitchen and licensing setup, with no pressure to proceed.
Most restaurant insurance claims fall into a handful of predictable categories. Understanding them helps explain why each type of cover exists, rather than treating restaurant insurance as one generic product.
Common claims
Independent guidance on restaurant insurance and the rules behind it.
Free, impartial money guidance backed by government, including guidance for small businesses. Call 0800 138 7777.
The legislation that makes employers' liability insurance compulsory for restaurants with staff.
The regulator responsible for food safety and hygiene standards in UK restaurants.
Check the authorisation of insurers before you buy a policy.
Common questions
Most restaurants need employers' liability insurance if they have any staff, which is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969. On top of that, public liability, buildings and contents, business interruption and product liability cover are all common, even though only employers' liability is compulsory by law.
It depends on how you trade. A licensed sit-down restaurant needs to think about alcohol licensing risk alongside standard cover, a delivery-only kitchen needs delivery liability cover, and any restaurant with fridges or freezers full of stock should check food spoilage and equipment breakdown cover. Speaking to an advisor about your specific setup is the most reliable way to match cover to what you actually do.
There's no fixed figure, because cost depends on your turnover, staff numbers, whether you serve alcohol, your cooking methods and your claims history. A small unlicensed café with no deep-fat frying will typically cost less to insure than a licensed restaurant with a busy kitchen and delivery drivers. An advisor can compare cover from a wide range of insurers based on your actual risk profile.
Not all of them, because public liability insurance isn't a legal requirement in the UK. In practice, most restaurants carry it because landlords, and sometimes local councils for outdoor seating, expect it as a condition of trading, and it's the cover that responds to the kind of customer injury or allergic reaction claims that are common in food service.
Restaurant insurance as a package isn't a single legal requirement, but employers' liability insurance is compulsory under the Employers' Liability (Compulsory Insurance) Act 1969 if you employ anyone. Public liability, buildings cover and the rest of what's usually bundled into restaurant insurance aren't required by law, though most restaurants can't trade practically without them.
It depends on the setup. If you use third-party platforms like Deliveroo, Uber Eats or Just Eat, much of the delivery liability sits with the platform, though incidents on your premises can still involve you. If you employ your own delivery drivers and run your own vehicles, you'll typically need separate fleet insurance for delivery vehicles alongside your restaurant policy, since a standard restaurant policy doesn't cover motor risk.
What our clients say
Shortly after I spoke with Anna, she was also very helpful and made it effortless and a nice experience.
Had a really good experience regarding arranging a secured loan. They introduced me to a great advisor. Thanks for the help.
For once a loan transaction without stress and complications. Very impressed and highly recommended.
Thrilled to share my exceptional experience with Money Saving Advisors. The website made it incredibly simple and easy to connect with an advisor. They helped me find the best deal on my remortgage and secured a very competitive interest rate!
Great advice and money saved on mortgage.
I have previously declined a loan of the value I needed from various brokers, but this website found me a reputable broker with surprisingly decent rates.
