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  • > Benefits of Restaurant Insurance
  • > Quick Guide to Restaurant Insurance
  • > Frequently Asked Questions
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Benefits of Restaurant Insurance

Comprehensive Cover

Wide range of coverage including legal liability towards bodily injury and property damage of the third party. Covers liability towards your employees under Workmen Compensation Act, Fatal Accident act and Common Law. The insurer will also pay for the death or disability of your staff due to accident. Also material damage and consequential losses are covered under this policy.

Exhaustive List of Perils Covered

This policy can cover your building, plant, machinery, furniture, mechanical and electrical instruments from wide range of perils like fire, lightning, riots, strike, bursting of water tanks and also the natural perils like flood, storm, typhoon. These are just some from the list, there is long list of perils which are covered. Also earthquake and terrorism can be covered by paying an extra premium.

Protection for Money

Loss occurring during money-in transit between the insured premises and bank and vice versa occasioned by theft, robbery or any other fortuitous event. Money on counter and money in safe, strong room and cashbox - securing money is covered under this policy so your business will not be interrupted due to these reasons.


Flexible Plan

You can customise this package policy according to your need that suits your business. There are many add-on covers which you can include in your base policy by paying an additional premium. This policy also gives you the option of covering the liability arising due to food and beverages served by you, sports facilities and swimming pool provided by you and other products offered by you.

Quick Guide to Restaurant Insurance

What is Restaurant Insurance?

If you're running a temporary eatery, opening a local café, or buying a fast food chain, you might be thinking about the type of insurance you need to safeguard your finances against the potential hazards of running a business. This article will provide you with an overview of restaurant insurance, including what it typically includes and how much it costs, as well as guidance on what to consider when comparing insurance providers. Equipped with this knowledge, you'll be better equipped to find the most suitable insurance policy for your restaurant.

Who can Take the Restaurant Insurance policy?

If you own a restaurant, having Restaurant Business Insurance is essential. There are various risks involved, such as equipment damage due to kitchen fires, lawsuits filed by guests for slip and fall accidents or food-borne illnesses, and employee injuries at work. A combination of appropriate insurance policies can provide you with protection against all these risks, and some types of coverage may even be mandatory by law in your state.


To keep your premiums reasonable, you can purchase only the necessary coverage and compare quotes from different insurance companies. You might be eligible for discounts on multiple policies from certain insurers, and you can choose a higher deductible to lower your monthly expenses. Additionally, you can reduce the risks by providing safety training to your staff.


What Does Restaurant Insurance Cover?

Restaurant insurance or hotel business insurance generally consists of various small business insurance policies, each designed to provide protection against the unique risks associated with the restaurant industry. The type of coverage required may vary depending on the restaurant's nature. The following are some common coverage types that many restaurant owners may require.


  • Commercial general liability insurance : It covers legal expenses and settlements in the event of a customer lawsuit against your business due to professional negligence. This includes property damage, like a server spilling wine on a customer's fur coat, as well as physical injuries, such as slip-and-fall accidents. The public liability insurance for restaurant usually provides coverage for medical expenses incurred by the customer and also covers lawsuits related to advertising claims, such as libel, slander, copyright infringement, plagiarism, and malicious prosecution.

  • Commercial property insurance: This covers the cost of repairs or reconstruction if your restaurant's building or contents, such as kitchen equipment, sustain damage from a covered loss. It typically covers common risks, such as fire and smoke, wind and hail, vandalism, specific types of water damage, building collapse, and damage caused by vehicles or aircraft.

  • Product liability insurance: As a restaurant owner, you are responsible for the quality and safety of the food you serve. In the event that a guest becomes ill after consuming your food or files a lawsuit due to false advertising of a signature dish, you could be held liable for expenses. To protect yourself from these potential costs, it is recommended that you select product liability insurance.

  • Workmen Compensation Insurance: TIn most states, businesses with a certain number of employees are obligated to have workers' compensation insurance, while some states require it for even one employee. This type of insurance covers medical bills and lost wages for employees who become sick or injured due to work-related duties. Simultaneously, it offers protection to restaurant owners against lawsuits from their employees.

  • Business interruption insurance: It provides compensation for income lost due to a covered loss. If your operations were forced to shut down to repair damage caused by a windstorm, this type of insurance would cover lost income to help you pay your mortgage or lease, taxes, loan payments, and employee payroll. Business interruption insurance is frequently incorporated as part of a business owner's policy (BOP).

  • Equipment Breakdown Coverage: In the event of equipment failure such as air conditioning or oven, your restaurant's operations may be disrupted. Equipment breakdown insurance offers coverage for breakdowns in mechanical, electrical, and pressurized equipment, as well as refrigeration and air conditioning units, and computers. It may also provide compensation for lost income during repairs and the cost of replacing spoiled food resulting from the breakdown.

  • Inland marine insurance: It is necessary if you transport equipment or inventory off-premises. This coverage includes business property that is shipped, transported, or stored off-site. However, if your property remains at your business location, you may not require this coverage.

What is Not Covered under Insurance for Restaurant?

While restaurant insurance policies typically provide comprehensive coverage for a range of risks and liabilities faced by restaurants, there are certain exclusions and limitations that policyholders should be aware of.


  • The loss or damage due to nuclear Hazards
  • Property damages due to pollution and contamination
  • Damage due to gradual wear and tear, deterioration or development of flaws over a period of time
  • Consequential losses
  • Damage as a result of wilful act or gross negligence on the part of the insurer
  • Damage to the property in case moved to any other location other then stated in the policy document
  • Loss or damage due to burglary and housebreaking when family member of insured is involved in any way
  • Pre existing faults or manufacturing defect in electrical appliances at the time of commencement of the policy
  • Shortage of monetary fund due to errors and omission
  • Injury or death because of participation in dangerous sport/hobbies
  • Loss or harm due to misuse of alcohol/intoxicant or resulting from HIV/ AIDS
  • Loss or damage resulting out of action of any lawful constituted authority or government body
  • Loss/damage for which the manufacturer, supplier, repairer, transporter, or any other third-party is responsible either under contract or by laws

What Are the Key Benefits of Buying Restaurant Block Insurance Policy?

Some key benefits of having a Restaurant Block Insurance cover include:


  • Protection From Unexpected Claim : Restaurant insurance provides coverage against a wide range of potential claims and risks that could harm a business at any time. These risks can have a significant negative impact on a business, but having restaurant insurance gives owners the peace of mind of knowing they are protected from these unpredictable events. This allows the business to focus on providing the best food and service, rather than worrying about details that may be beyond their control.

  • Reduced Financial Losses: Restaurant insurance provides financial protection for the owners by covering various claims and losses, which saves them a significant amount of money. Losing such a substantial amount can be challenging for a business to recover and rebuild. With the help of restaurant insurance, the owners can concentrate on a brighter future and allocate funds towards expanding the business and attracting new customers.

  • Employee Safety: Restaurant insurance provides coverage for medical care of any employee who gets injured while on the job. This coverage can create a sense of security and care for employees, making them feel safer at work. In case of a work-related injury, employees can focus on their recovery without worrying about the financial burden. Happy employees are crucial to the success of any business, as they tend to work better, resulting in satisfied customers and a thriving business.

Things to Consider before buying Restaurant Business Insurance Policy

When buying business insurance for restaurant, one should consider certain factors:


  • Assess Your Risks : An insurance cover is offered after assessing the risk appetite of the applicant. Assessing your risks involves identifying potential hazards, evaluating their likelihood and potential impact, and considering the insurance coverage needed to mitigate these risks. Also, every policy comes with a premium and deductible. Premium is the amount you pay for availing the policy benefits while deductible is a pre-decided amount that you agree to pay at the time of claim. Simply put, lower the deductible you pay, higher your insurance premium will be or vice versa.

  • Shop Around : Instead of randomly purchase once must conduct research and make an informed decision. You may seek assistance from online insurance broker who can help suggest suitable plans.

  • Insurance Coverage: The scope of insurance coverage can vary significantly among insurers. When purchasing business insurance, seeking guidance from experts who understand the potential risks your business may face can be beneficial. Insurance brokers may also provide valuable insights. It is important to ensure that the insurance coverage you obtain is suitable for your business's specific needs.

  • Consult a Reputable Insurance Broker: The broker you chose should be authorised and reputable. Make sure expert has sufficient knowledge about the product and he can clarify your doubts. If not you can ask your family or friends using the policy or check online customer reviews to make a purchase decision.

  • Review Your Insurance Needs: As your business grow, so does your liabilities. And you can’t afford being not covered during an unforeseen disaster. affect your finances. Moreover, the coverage you chose when you first started your business may not meet your current insurance requirements. Therefore, it is essential to evaluate your needs and inform the insurer if you require additional coverage.

How Much Does Restaurant Insurance Cost?

Restaurant insurance in India can be quite affordable, specially for small businesses and MSMEs. Insurers generally consider the following factors when determining the exact premium for restaurant insurance:

  • Location : The cost of your restaurant insurance will depend on where it is located. Your premium will probably be on the higher side if your neighborhood experiences regular fires, floods, or riots. It would be relatively less, if your company is situated in a neighborhood that is safer and has a low-risk profile.

  • Coverage : The cost of your insurance policy is also influenced by the coverage options you select. Optional add-ons that come with restaurant insurance can significantly increase your base premium, depending on the insurer's rates. It's important to note that limiting the number of coverages in your restaurant insurance policy may result in being underinsured.

  • Size of your Restaurant : The size of your cafe or restaurant is another factor that impacts the precise premium for your insurance. Insurers will also take into account the cost of insurance for larger restaurants that have significant inventory, equipment, and expensive furniture.

How to buy Restaurant Insurance from SecureNow?

Obtaining insurance for your restaurant is a simple process as long as you have your business information available. When completing an insurance application, you will be asked for fundamental details about your restaurant, such as revenue and the number of employees. With SecureNow, you can purchase a policy online and obtain a certificate of insurance in three straightforward steps:

  • Visit  www.securenow.in select ‘Profession’, then   ‘Restaurants’
  • Fill some basic details of items in contact details and click on ‘Next’
  • Our Sales manager will connect with you within 24 hours to help you close the deal at the earliest
  • The Policy copy will get issued at client's registered email id, offline within 15 working days once you are done with the payment

Restaurant Insurance FAQs

A restaurant insurance policy covers all types of F&B and hospitality business, which can include restaurants, Cafes/Coffee shops, Cafeterias, bars, nightclubs, eateries, caterers, food trucks, etc.

Coffee shop business insurance, also known as cafe insurance, is essential for protecting coffee shops against liabilities and unexpected events that can threaten their financial stability.

Having food business insurance, including coverage for food delivery services and small/fast food businesses, is crucial to mitigate risks and protect against unexpected events in the food service industry.

Restaurant owners, it is advisable to contemplate obtaining business property insurance that provides coverage for the physical structure and all contents. Additionally, liability insurance must be acquired to ensure coverage in the event of accidents or property damage caused by your business operations. In nearly all states, employers are obligated to secure workers' compensation insurance if they have employees.

To safeguard against various risks, restaurants require insurance coverage. General liability, property insurance, and workers' compensation insurance are the most essential coverage that most restaurants need. However, some restobars may also require liquor liability insurance and commercial auto or hired and non-owned auto coverage. It is also recommended to add product liability insurance, spoilage insurance, equipment breakdown coverage, and business interruption insurance to your policy package.

It is recommended that all restaurant and food and beverage business owners invest in a commercial general liability insurance policy to protect themselves against common customer complaints such as slip-and-fall injuries.
It is advisable for all owners of restaurants and food and beverage businesses to acquire a commercial general liability insurance policy to provide protection against typical customer complaints, such as slip-and-fall injuries.

Insuropedia

What is important to consider while shopping for restaurant insurance?

Not having an insurance protection plan for your restaurant can create chaos if something goes wrong. It is important to be prepared for contingencies and let your business be at peace at the time of mishaps. Buying a restaurant package policy provides safeguard against the turmoil of financial uncertainty....
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What Kinds of Insurance Should a Restaurant Owner Buy?

Undoubtedly, working in the food services industry can make you vulnerable to various risks. Your employees are subject to various kinds of hazards while working in the kitchen, like sharp knives, hot stoves, etc. Similarly, diners could also get food poisoning due to an uncooked meal or if they slip on a freshly mopped floor, etc....
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How Can I Buy Restaurant Insurance Policy?

Irrespective of the size of your restaurant or takeaway shop, you or your business are open to various risks which can arise while discharging the professional duties. Here, restaurant insurance policy can help you, which has been specifically designed keeping in mind the divergent needs of your business ...
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Value-Added Services

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