Restaurants Insurance
Protect your restaurant from customer injury claims, food safety incidents and property damage with cover designed for the hospitality sector.
Get in touchWhat is restaurants insurance?
Restaurants insurance is a specialist policy that protects restaurants from the risks of serving customers, managing premises and employing staff. It typically includes public liability, employers liability and buildings and contents cover.
Running a restaurant business involves risks from food safety and customer injuries to property damage and staff claims. The right insurance means a single incident will not shut your doors.
Find insurers who understand the hospitality and food sector, so your cover reflects the specific risks your restaurant business faces.
Public Liability
Covers claims from diners and visitors for injury or property damage at your restaurant.
Employers Liability
Required by law if you employ anyone, covering employee injury or illness claims.
Buildings and Contents
Covers your restaurant premises, kitchen equipment, furniture and fixtures.
Products Liability
Covers claims arising from food you prepare and serve to customers.
Who needs restaurants insurance?
Independent restaurants
Operating a single restaurant with a full kitchen
Restaurant chains
Running multiple restaurant locations
Fine dining establishments
Serving high-end cuisine in premium settings
Fast casual restaurants
Offering counter-service dining with fresh-prepared food
Pop-up restaurants
Operating temporary restaurant ventures at different locations
Licensing and regulatory requirements for restaurants
Restaurants require a Premises Licence from the local authority before serving food and alcohol. The licence includes conditions requiring proof of public liability insurance. Environmental Health registration and Food Hygiene Rating from your local Food Standards Authority are also mandatory. Restaurants must comply with food safety regulations (Food Safety Act 1990 and Food Standards Agency requirements), including allergen labelling, food handling practices, and temperature controls.
Health and safety legislation requires all restaurants to conduct risk assessments and maintain safe working conditions in the kitchen and dining areas. Public liability insurance is a standard condition of premises licenses and is routinely requested by landlords. Most policies cover food poisoning claims and allergen incidents, though this must be confirmed with your insurer.
Alcohol service is heavily regulated under the Licensing Act 2003. Premises serving alcohol must have a designated Designated Premises Supervisor (DPS) and must comply with strict trading hours and customer conduct rules. Your insurer must be informed of all licensed activities, as alcohol service affects your premium and the scope of cover.
Employers liability insurance is legally required if you employ anyone, including kitchen staff and front-of-house workers. Most restaurants employ multiple staff and must hold a minimum of £5m cover. Food preparation areas are subject to additional health and safety requirements, including temperature controls and segregation of raw and cooked foods.
How much does restaurants insurance cost?
£350 – £800 per year for a small independent restaurant; larger establishments with full kitchens may pay £900 – £1,500
Real claims: what restaurants insurance covers
A customer at a restaurant suffered a severe allergic reaction after eating a meal containing peanuts, despite the menu stating the dish was peanut-free. The customer was hospitalised and required emergency treatment.
Products liability covered the customer's hospital treatment costs, medication, follow-up medical appointments, and compensation for pain and suffering, including lost earnings during recovery.
£28,500 total — £18,000 hospital and medical costs, £7,500 compensation for injury and lost income, £3,000 legal representation and settlement negotiation
A member of the restaurant's kitchen staff slipped on a wet floor and fractured their ankle, requiring surgery, physiotherapy, and six weeks off work during recovery.
Employers liability covered the employee's full compensation for the injury, surgical costs, physiotherapy, lost wages during recovery, and statutory sick pay obligations.
£34,000 total — £22,000 compensation and lost wages, £9,000 surgical and physiotherapy costs, £3,000 legal and administrative fees
A customer spilled hot soup on themselves while reaching across a table, suffering second-degree burns to their arm and hand. They required specialist burn treatment and grafting.
Public liability covered the customer's hospital treatment, specialist burn clinic appointments, dressing changes, cosmetic scar revision, and compensation for pain and suffering.
£21,000 total — £14,000 hospital and burn specialist treatment, £5,000 compensation for injury and scarring, £2,000 legal and claims administration
WHY CECIL
Built differently.
Food safety cover
Restaurants face food poisoning and allergen claims regularly. Cecil finds insurers who cover food-related incidents without restrictive exclusions.
Kitchen equipment protected
Commercial kitchen equipment is expensive to replace. Cecil ensures your policy covers ovens, fridges, extraction systems and other kitchen assets.
Business interruption available
If a fire or flood forces your restaurant to close, business interruption cover replaces your lost income. Cecil includes this where needed.
Competitive hospitality quotes
Get options from specialist insurers to find restaurant insurance from hospitality sector specialists. Relevant cover, fair prices, no generic commercial policies.
Common questions about restaurants insurance
Do restaurants need public liability insurance?
Public liability insurance is an absolute practical necessity for restaurants. The customer-facing nature of a restaurant business creates constant exposure to third-party injury and property damage claims: slips on wet floors, burns from hot food or beverages, allergic reactions to ingredients, and damage to customers' personal belongings are all everyday risks. While public liability is not a statutory legal requirement in itself, it is a standard condition of most restaurant premises leases, licensing authority requirements, and any supplier or event agreements. Without it, a single serious customer injury claim could reach tens of thousands of pounds or more in compensation, medical costs, and legal fees. Restaurants should compare options from specialist hospitality sector insurers to ensure the policy covers the full scope of activities — including takeaway, delivery, and any events catering alongside the main dining operation.
Does restaurant insurance cover food poisoning claims?
Yes, products liability insurance covers claims arising from food you prepare and serve that causes illness, injury, or allergic reaction. If a customer suffers food poisoning following a meal at your restaurant, products liability covers their medical costs, compensation for pain and suffering, and your legal defence costs. Allergen-related claims are particularly significant — since Natasha's Law came into effect in October 2021, all pre-packaged food sold in the UK must carry full ingredient and allergen labelling, and allergen information for menu items is now heavily regulated. Some insurers limit or exclude allergen claims, so it is essential to check this when selecting your policy. Training staff in allergen management, keeping accurate recipe records, and displaying allergen information clearly all reduce your exposure and demonstrate good practice to your insurer.
Do restaurants need buildings insurance?
If you own the freehold of your restaurant premises, buildings insurance is essential. It covers the cost of rebuilding or repairing the structure following fire, flood, storm damage, vandalism, or other insured perils. Commercial kitchen premises can be expensive to rebuild — especially if they include specialist ventilation, extraction systems, or structural modifications. If you lease your restaurant from a landlord, the landlord typically arranges buildings insurance for the structure and may recharge the premium to you as a service charge, so check your lease. As a leaseholder, you will still need contents insurance for your own fit-out, kitchen equipment, furniture, point-of-sale systems, and trading stock. Your chosen insurer can offer combined contents and buildings cover if you own the freehold, or contents-only cover if you lease. Confirm what is included and any reinstatement value requirements.
What level of public liability insurance do restaurants typically need?
Most restaurants carry public liability cover of between £2m and £5m. The appropriate level depends on the size of your premises, your average covers per service, and any specific requirements from your landlord or licensing authority. Most commercial restaurant leases specify a minimum of £2m; licensing authorities and larger shopping centre landlords sometimes require £5m. For busy, high-turnover restaurants with large dining rooms — particularly those also hosting private events or functions — £5m is a sensible minimum. Bear in mind that a single serious injury claim involving permanent disability can generate a compensation award that exceeds £1m on its own, before legal costs are added. Speak to an FCA-authorised broker with experience in the hospitality sector to assess the right level for your specific venue, turnover, and customer profile. Always check your lease before setting your cover level.
Are restaurants required to have employers liability insurance?
Yes, employers liability insurance is a legal requirement under the Employers Liability (Compulsory Insurance) Act 1969. Any restaurant that employs one or more members of staff — including part-time kitchen porters, waiting staff, bar staff, and apprentices — must hold a minimum of £5m employers liability cover. The current certificate must be displayed at the premises (physically or electronically) and produced on request. Restaurants are high-risk environments for employee injury: kitchen burns, slips on wet floors, manual handling injuries, and long hours under pressure all contribute to a high rate of workplace accidents. Failure to hold employers liability insurance when required is a criminal offence, with fines of up to £2,500 per day. The cover should be renewed alongside your public liability and other policies annually and must remain in force whenever staff are working.
Does restaurant insurance cover alcohol service?
Restaurants that hold a premises licence for the sale and supply of alcohol need to inform their insurer that they serve alcohol, as it affects both the premium and the scope of cover. Most standard restaurant insurance policies include products liability for food and beverages served on the premises, which covers claims arising from alcohol service within the normal scope of licensed activity. However, some insurers apply exclusions or additional conditions relating to claims arising from a customer's intoxication — for example, if an intoxicated customer injures themselves or another person after consuming alcohol at your restaurant. The Licensing Act 2003 places responsibility on licence holders to prevent irresponsible alcohol service. Always disclose your licensing status and the proportion of your revenue from alcohol when arranging cover, and confirm with your chosen insurer how alcohol-related incidents are treated under the policy.
Does restaurant insurance cover alcohol-related incidents?
Claims arising from alcohol service in restaurants are generally covered under products liability and public liability policies, but the extent of cover depends on how the incident arose and the policy terms. If a customer suffers an injury on your premises that is unrelated to intoxication — for example, slipping on a spilled drink — your public liability policy responds normally. If the claim specifically arises from the effect of alcohol consumed at your restaurant — for example, an intoxicated customer causes an accident after leaving your premises — the liability position is more complex and some policies limit or exclude this scenario. Your insurer must be informed that you hold a premises licence and serve alcohol; non-disclosure could affect your ability to claim. Good licence management, robust Challenge 25 procedures, and staff training in responsible alcohol service all reduce your exposure significantly.
What happens if Environmental Health issues a food hygiene notice against my restaurant?
If the Environmental Health Officer (EHO) issues a hygiene improvement notice, prohibition notice, or emergency prohibition notice, your restaurant insurance does not cover the fines, enforcement costs, or the costs of mandatory closure imposed by the authority. These are regulatory penalties that fall outside the scope of standard insurance. However, if the notice leads to a period of enforced closure, business interruption insurance can cover your lost trading income during the closure period, provided the cause of the closure falls within the policy's covered perils. If customers or suppliers make claims against you arising from the same food safety incident — for example, a customer who fell ill before the notice was issued — public liability and products liability policies would respond to those claims. Notify your insurer as soon as any enforcement action begins, and take immediate steps to address the issues identified by the EHO.
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