Hospitality Insurance
Cover options for cafes, restaurants, bars, caterers and event venues serving customers every day.
Industry overview
Hospitality businesses deal with busy kitchens, crowded floors and stock that can spoil quickly. A kitchen fire, a fridge failure or a guest injury can close the doors for days.
Venues also operate under food safety rules and, where alcohol is served, liquor licensing conditions. Insurance sits alongside these obligations as part of running a well-managed venue.
Common business risks
Kitchen fires
Commercial cooking equipment, oil and exhaust systems carry a real fire risk. Damage can extend to the building and neighbouring tenancies.
Customer slips and injuries
Wet floors, outdoor seating and steps can lead to falls. Injured guests may make a claim against the business.
Food spoilage
A power outage or refrigeration breakdown can mean throwing out stock. Some policies offer cover for spoilage as an option.
Food-related illness
If a customer becomes unwell after a meal, the business may face a claim. Food handling practices and records can be important in these situations.
Business closure after damage
Repairs after a fire or flood can take weeks. Rent, wages and loan repayments usually continue while income stops.
Off-site events and catering
Caterers and event operators work at venues they do not control. Hired equipment and temporary structures add further risk.
Insurance commonly considered
Businesses in this sector often look at the following types of cover. What suits you depends on your operations, contracts and assets.
- Business InsuranceHospitality packages may combine property, stock and liability cover, with options such as spoilage, depending on the insurer.
- Public & Product Liability InsuranceVenues with customers on site every day are often asked by landlords to hold public liability.
- Business Interruption InsuranceRestaurants and cafes may look at this cover because fixed costs continue when an insured event forces a closure.
- Commercial Property InsuranceOwners of venue buildings, fit-outs and kitchen equipment often consider property cover for fire and other damage.
- Cyber InsuranceVenues that take online bookings and card payments may consider cover for data breaches and system outages.
Risk management considerations
- 1Have kitchen exhaust systems and fire suppression equipment cleaned and serviced on a regular schedule.
- 2Keep food safety records, including temperature logs and supplier details.
- 3Use clear cleaning routines and signage to reduce slip hazards during service.
- 4Train staff on responsible service of alcohol and the conditions of your liquor licence.
- 5Check that backup arrangements are in place if refrigeration fails outside trading hours.
- 6Review your stock and equipment values with your broker before busy seasons.
Why broker support helps
Hospitality policies can vary in how they treat things like spoilage, glass, outdoor areas and catering away from the premises. A broker can explain the differences and help you choose options that reflect how your venue operates.
After a fire or flood, there is a lot to manage at once. A broker can help you lodge the claim, gather supporting documents and keep the insurer updated while you work on reopening.
Frequently asked questions
Does business insurance cover spoiled food after a power outage?
Spoilage cover is often an optional extra and may have conditions, such as how long the outage lasts or whether it was caused at the premises or by the supply network. The policy wording sets out these details.
Do I need special cover to serve alcohol?
Licensed venues may have specific insurance needs, and some insurers ask about trading hours, entertainment and security arrangements. Liquor licensing conditions are set by state and territory regulators and are separate from insurance.
Am I covered when catering at another venue?
Some policies extend to work carried out away from your premises, while others are limited to the listed address. It is worth checking the territorial and situation clauses in your policy, or asking a broker.
Are my staff covered if they are injured at work?
Injuries to employees are generally handled through workers compensation, which is arranged through each state or territory's scheme or authorised insurers. It is separate from a business insurance package.
Talk to us about insurance for your business.
Tell us how your business operates and we'll discuss the types of cover that may be relevant.