THE COVERWISE BLOG

Insurance for the café and restaurant sector

What are the key risks in the café and
restaurant sector?


The café and restaurant sector is dynamic, with owners and operators busy juggling the plates and spinning the bottles required in the day-to-day management of such a fast-paced industry.
Whether you’re running a café, restaurant or catering business, some of the key risks you face include protecting your staff from workplace accidents, your property and business assets from theft, accidental damage, fire and weather-related risks, plus taking reasonable steps to ensure the safety of your customers at your premises and the safety of the products you’re serving them. Depending on the conditions of your lease, you maybe require to have a minimum amount of insurance for public liability and glass cover.

Who should consider insurance?

Whether you’re running a small café or a restaurant chain, as an industry with complex risks where no two businesses are alike, a range of flexible and customised insurance covers are required to protect your business, staff, assets and customers.

Did you know?

  • Insurance accounts for an average of 8% of the total business costs of cafes and restaurants. (Restaurant and Catering Association, 2020 Industry Benchmarking Report)
  • Cuts, punctures and scrapes make up a third of restaurant workers’ compensation claims, but slips and falls cost 4.5 times more. (AM Trust Financial, Recent Trends in Restaurant Claims)
  • Machinery breakdown is the most common claim made by cafes, restaurants and take away shops. (AAMI Top 6 Hospitality Insurance Claims)

What insurance should you take out – and what can it cover?

Case Study

Joe runs a small cafe in bayside Melbourne. He opens the business one Friday morning only to discover that during the night the compressor of his commercial refrigerator had failed, causing the temperature to rise to 26 degrees. Thankfully, Joe had business pack insurance that included equipment breakdown, which covered both the cost of repairs to his refrigerator and the value of the spoiled food he had to throw out.

Limits, excesses and exclusions

Policy exclusions, the excesses you need to pay and limits of liability can vary greatly depending on your insurer and the requirements of your business.

Important note


This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker whether this type of insurance is appropriate for you. Deductibles, exclusions and limits apply. This type of insurance is issued by various insurers and can differ.

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