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There are many different types of commercial food businesses, including takeaway shops, mobile food vans and commercial catering businesses. What these diverse businesses have in common is they serve consumable foodstuffs to the public, so they present similar risks when it comes to assessing their insurance needs.
You can compare quotes for many types of business insurance here with Savvy. Just answer a few simple questions about the business you run and the insurance you need and you’ll have multiple quotes from a range of respected insurers to consider instantly. Use our quick and easy comparison service to help you get the best value insurance for your food
There are many different types of food businesses that require business insurance, including:
If you run any of these food businesses, there’s several types of business insurance you should consider to protect you and your business. These include:
Product liability insurance
Product liability insurance is the most important type of insurance for any food business, as it can cover you against claims that the products you supplied caused sickness, injury or death to a third party, or damaged their property. This type of insurance is vital for anyone who sells freshly prepared food or drinks, as it can protect you from claims associated with food poisoning.
Cover starts from $250,000, with the level of cover required depending on the type of food business 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 type of business.
What it covers:
Public liability insurance
Public liability insurance is also essential for anyone who runs a food business, commercial restaurant or kitchen. It can cover you against claims that 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 supplier is injured whilst delivering fresh fruit or vegetables to you, your insurance would cover the cost of any resulting claim.
Public liability insurance can offer between $5 million and $20 million worth of coverage, and is a compulsory form of insurance which is required in order to take out many retail shop leases.
What it covers:
General business insurance
General business insurance may also be necessary if you run a food business. You may have a great deal of portable business equipment to protect, such as deep fryers, fridges and freezers or coffee-making machines to protect.
Your electrical equipment can be covered by business equipment insurance, which you can purchase as part of a business insurance package. If you own your restaurant building, you may also need commercial property insurance to cover your business premises. Other specialist types of business insurance which can be added to your insurance package include:
By bundling all your insurance needs into one general liability insurance package, you’ll only have one policy and be required to deal with one insurance company. This can save you considerable time and money if you do ever need to make a claim, as you will not have to deal with multiple insurance companies.
What it covers:
Management liability insurance
This insurance covers you against the risks involved with running a business. It’s usually taken out to protect owners and managers from the risks associated with making management decisions. For example, if you run a commercial kitchen supplying food seven days a week, you may employ upward of 20 staff. Areas which are covered by management liability insurance include:
What it covers:
What isn’t covered under business insurance for a food business?
The most common general exclusions include:
There is no set cost for insurance for a food business, as each applicant is different and faces unique risks. Many factors influence the cost of business insurance for food businesses, including the following:
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 liability insurance is your location. There may be two almost identical food businesses, but insurance for a business in the Northern Territory may cost more than a similar one in Victoria, simply because of the additional risks posed by cyclones in the tropical regions of Australia.
You can find out how much insurance will cost for your business by comparing quotes right here with Savvy. Whether your food business is located in a rural town or a suburban shopping centre, you’ll be able to find a policy which is perfect for your business needs here.
The reason you need insurance if you run any sort of food business is because every day you face multiple risks. Business insurance, particularly product liability insurance, is there to protect you from a wide variety of claims that could threaten the existence of your business.
There are not only the obvious risks associated with preparing food (such as tripping, slipping or burns) but also business liability risks resulting from a successful claim against your or your business. There’s always the risk of wait staff accidentally dropping hot food or drink onto a customer. If you also offer a food delivery service (such as if you run a pizza shop), there’s also the risk of your delivery staff getting injured on the road.
Since you’ve worked so hard to set up your business, 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 can be protected against a range of unforeseen events which are covered by your policy. 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.
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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.
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© 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.
