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8 business insurance options for cafes, restaurants and takeaway shops


Hospitality businesses can be hive of activity, but exactly what sort of cover should you consider? The right insurance can help to keep your business afloat if things go wrong. There are 8 main options for hospitality businesses.

Regardless of the size of your restaurant or takeaway shop, there are a variety of insurance policies that may help protect your revenue if something goes wrong. There may be compulsory insurance – like public liability, often required by landlords – but there are also ‘good to have’ types of insurance for those wanting protection as their business grows.

General liability: This is an important 'umbrella' policy that covers you if a customer is injured or otherwise harmed in your place of business.

Theft: There are three main types of theft insurance.

(A) Theft – covers the loss of your contents and stock from theft, attempted theft, armed hold-up or an actual or threatened assault.

(B) Money – covers the loss of or damage to your business’ money from a wide variety of sources, including theft, armed hold-up and fire, either on your premises or in transit.

(C) Employee dishonesty – covers the theft of your property or money by any one of your employees either acting alone or in collusion with others.

Product liability: Insurance to protect against claims made by customers who used (most likely ate or drunk) your products – one of the most important policies you can have.

Workers compensation: This insurance is mandatory throughout Australia and protects you if your staff are injured while at work. Note that AAMI does not offer Workers Compensation.

Property contents: Fire, storms and other disasters are all too common and can put you out of business in mere minutes. This policy covers the financial cost of loss of property from such events.

Equipment breakdown: Without functioning equipment, your restaurant or takeaway store can't trade and your business will suffer. This type of insurance covers the financial cost of repairing or replacing fixed equipment that has broken down, such as a fridge or cool room compressor.

Deterioration of stock: Going hand in hand with equipment breakdown insurance, this type of cover insures you against food spoilage that may occur as a result of equipment breakdown.

Business interruption: Incidents beyond your control may shut down your business. This policy covers operating expenses, such as your lease and franchise fees, and may also cover food spoilage.

You may also want to consider policies for other important contingencies, such as liquor liability, goods in transit cover, glass breakage, vehicle insurance (if you operate one for work) or building cover (if you own your premises).

AAMI has a variety of business insurance policies that can help protect your business and get you back on your feet should things go wrong.