Compare business insurance quotes with Savvy to find the best policy for your cafe or restaurant
Fact checked
We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.
While you’re serving up the best chai latte in town, have you ever thought what might happen to your cafe or restaurant if something went wrong? Unfortunately, cafes and restaurants buzzing with excited diners present a high risk setting where accidents can happen. That’s why it’s important to have comprehensive business insurance to protect you and your business against any eventuality.
You can compare quotes for all types of business insurance here with Savvy. Just answer a few simple questions about your cafe, coffee shop or restaurant, and the insurance you need, and within minutes you’ll have multiple quotes from a range of respected insurers to compare. Use our quick and easy comparison service to make sure you get the best-value insurance for your café today.
There are several types of business insurance you should consider if you run a busy cafe or restaurant. These include:
Product liability insurance
Product liability insurance is the most important type of insurance for any restaurant or cafe, as it will cover you against third-party claims that the food you supplied caused sickness, injury or even death. This type of insurance is vital for anyone who sells freshly prepared food or drinks, as it protects you from any claims associated with food poisoning.
Cover starts from $250,000, with the level of cover required depending on the type of cafe or restaurant you run, and the legal requirements of the council which issues your food vendors’ permit. Check with your council about the level of cover required for your specific location and the type of restaurant or small cafe you run.
What it covers:
Public liability insurance
Public liability insurance is also essential for anyone who runs a cafe or restaurant, or any other type of hospitality business (including coffee shops and internet cafes.) It’ll cover you against claims a member of the public was injured whilst on your business premises, or that their property was damaged as a result of your business activity.
For example, if a customer trips or falls whilst in your cafe, or if one of your wait staff accidentally spills a hot coffee into a customer’s lap, your insurance will cover the cost of any resulting claims. Public liability insurance can offer between $5 million and $20 million worth of coverage, and is a compulsory form of insurance in order to get many commercial leases.
What it covers:
General business insurance
General business insurance may also be necessary if you run a cafe or restaurant, or any other form of hospitality business such as a takeaway shop, a fish and chip shop or a pizza shop. In any such food businesses you may have a lot of portable business equipment to protect, such as ovens, deep fryers, fridges and freezers, food mixers and coffee-making machines.
All this type of electrical equipment can be covered by business equipment insurance, which you can purchase as part of a business insurance package. Other specialist types of business insurance which may be relevant to your cafe or restaurant include machinery breakdown, business interruption and tax audit insurance. If you own your restaurant or cafe building, you may also need commercial property insurance to cover your business premises.
Glass breakage is a common exclusion in most business insurance policies, but you can buy separate glass insurance as part of a general business insurance package. This will offer cover in case your glass windows, front counters or display cabinets are damaged.
Machinery breakdown – covers you in case your freezers or refrigerated storage rooms break down, causing loss of stock due to spoilage
Business interruption – covers you in case there is an insured event (such as a power failure, for example) which causes you to have to close your cafe or restaurant, and lose business and income as a result
Tax audit cover – which offers cover in case your business is subject to a tax audit, and you need to employ additional accountants or bookkeepers to comply with audit requirements
What it covers:
Management liability insurance
This insurance covers you against the management liability risks involved with running your food hospitality business. It is usually taken out to protect business owners from the risks associated with making business decisions. For example, if you run a busy restaurant open seven days a week, you may employ upward of 20 or more staff. With this number of staff comes the risk of unfair dismissal claims, which is an area covered by management liability insurance. Other areas which are covered by management liability insurance include:
What it covers:
What isn’t covered under business insurance for a cafe or restaurant?
The most common general exclusions include:
There is no set cost for an insurance policy, as each applicant is different and faces unique risks. There are many factors that influence the cost of business insurance, including the following factors:
The main factor which will affect the cost of your insurance is the industry you’re in. All businesses in Australia are classified according to the risk their industry poses, and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another.
Another factor which will play a part in the cost of your insurance is your location. There may be two almost identical restaurants, one in the NT and the other in WA, but the insurance for the business in Darwin may cost more simply because of the additional risks posed by cyclones in that city.
You can find out how much insurance will cost for your food business by comparing quotes right here with Savvy. Whether your cafe or restaurant is located in a quiet rural town or a busy suburban shopping centre, you’ll be able to find a policy which is perfect for your business needs here.
The reason you need business insurance (particularly why you need product liability insurance) when running any sort of food business is because you face multiple complex risks. Business insurance is there to protect you from a wide variety of risks, including:
Since you’ve worked so hard to set up your cafe or restaurant, it makes sense to protect it and your reputation from anything that can go wrong. Having business insurance offers security and peace of mind, knowing you’re protected against any unforeseen events. If something unfortunate does happen and you have adequate insurance to protect yourself, you’ll have a much better chance of recovering quickly and getting back on your feet.
Find the best possible insurance coverage for your business quickly and easily here with Savvy's 100% free comparison service.
With multiple trusted insurance partners across the country, you can enjoy high-quality online comparisons all in one place right here.
Skip the hassle and save time and money by comparing with Savvy to get multiple instant online insurance quotes for convenient comparisons.
Disclaimer:
Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.
Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
