Tips for Café & Restaurant Insurance - by Abbie Wilson
Having customers enter your cafe or restaurant each day brings with it the risk of a customer slipping or falling whilst in your establishment. When working with and serving food and beverages to customers, there is the risk of food poisoning and other health risks that can occur.
Remember - One hot coffee being spilt on your customer is enough to trigger an insurance claim against you.
Three things to consider when looking for cafe insurance and restaurant insurance:
Buying online without considering claim support a broker offers: Hospitality is a fast-moving industry. With many of us being time-poor, it can be tempting to search online for your cafe or restaurant insurance and wanting to get your insurance online, driven by the thought that it can be both easier and cheaper. That’s all well and good until the worst-case scenario happens and you’re left dealing with a call centre at their most vulnerable time - when you face a loss or need assistance with an insurance claim.
Seeking reduced insurance coverage to save a few dollars: It can be tempting to reduce the insurance coverage for your restaurant or cafe to save on your insurance premiums. However, after suffering a loss, you can be left drastically short and your insurance is unable to fully repair or replace all damaged items or loss that you’ve experienced.
Changing complexity - rising insurance premiums and changing terms and conditions: The global insurance market is changing and we're seeing insurance premiums increase with either similar or different terms and conditions attached. Insurers are stricter than ever before when it comes to their underwriting guidelines, terms and conditions. Understanding both what is driving the changes in insurance premiums and the underlying terms that you are agreeing to are complex.
One common risk - Bursting Water Pipes
One of the most common insurance claims for Restaurant and Cafe owners is damage caused by water. Water pipes can burst without warning! One of our café owners experienced bursting water pipes during the busy lunchtime rush. The water damage resulted in extensive repairs to both floors and several walls within the building with some equipment and stock was unsalvageable. Also, to enable the repairs to be completed the café had to close their doors during the repairs which reduced their income to zero.
The business insurance we’d placed ensured all repairs and lost income was claimable under their business interruption cover.
What problems might you face when you don’t have an adequate cafe or restaurant insurance policy in place?
Cafe and restaurant owners already know how to make good coffee and serve the finest food, they often don’t know how to design the most effective menu for their insurance!
Taking time to understand the risks associated with cafes and restaurants, understanding their unique requirements and sharing stories so clients can better understand their insurance.
Three things people should consider when looking for cafe and restaurant insurance:
Your tools make a big difference: Your insurable risk increases when you provide deep frying or operate from an older building. Utilising deep fryers poses a much higher fire risk and insurance policies come with strict cooking conditions imposed that may include having contractors clean the fans and filters. Individual terms and conditions are dependent on the insurance companies’ policy terms and conditions.
Engage a true insurance expert - Insurance Broker: Be careful where you source your insurance information from. Social media and online networks can be great for sharing business tips and tricks, however, when it comes to your insurance make sure you rely on an expert insurance broker with experience in cafe and restaurant insurance requirements.
Know the real value of your business assets: Consider having your property, including your contents, machinery and equipment valued by a qualified and registered builder/valuator based on insurance purposes - not resale value, ensures all assets are adequately covered by your insurance. Knowing you are covered adequately gives you an extra peace of mind in the event a claim was to occur