Written by Michael Foote, Insurance Expert
Michael Foote is the founder of Quote Goat and has over 20 years experience working in finance & insurance. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city.
How Much Does Restaurant Insurance Cost in the UK?
Restaurant insurance premiums in the UK typically range from £1,200 to £6,000+ per year, depending on your business size, location, and the level of cover you need.
Small cafés and bistros can expect to pay towards the lower end of this range, while larger restaurants or those serving alcohol will face higher premiums. Understanding what drives these costs helps you budget accurately and identify opportunities to reduce your premium without compromising protection.
Average Restaurant Insurance Costs by Business Type
Small cafés and bistros:
- Turnover under £250,000
- Typically 5–15 staff
- No alcohol licence
- Annual cost: £1,200–£2,000
Medium-sized restaurants:
- Turnover £250,000–£1 million
- 15–30 staff
- Alcohol served, full kitchen operations
- Annual cost: £2,500–£4,000
Large or multi-site restaurants:
- Turnover over £1 million
- 30+ staff, multiple locations
- Complex operations including late opening and delivery
- Annual cost: £4,500–£6,000+
What Affects Restaurant Insurance Costs?
Insurers assess multiple risk factors when calculating your premium:
Business turnover and size:
Higher revenue and larger premises increase your exposure to claims. A busy 100-cover restaurant faces more liability risk than a 20-seat café.
Type of food service:
Kitchens with deep fryers, grills, and open flames present greater fire risk. Fast food outlets typically pay more than sandwich shops.
Alcohol licence:
Serving alcohol increases the risk of customer incidents and liability claims. Restaurants with full alcohol licences pay higher premiums than unlicensed cafés.
Location:
City-centre restaurants in high-footfall areas face higher theft and liability risks. Rural locations with lower crime rates often benefit from reduced premiums.
Staff numbers:
Employers’ liability premiums scale with headcount. More staff means higher potential costs if workplace injuries occur.
Claims history:
Previous claims, particularly those involving customer injury or fire damage, significantly increase future premiums. A clean claims record keeps costs down.
Opening hours:
Late-night trading increases risk. Restaurants open past midnight typically face higher premiums than daytime-only cafés.
Security and safety measures:
CCTV systems, intruder alarms, fire suppression equipment, and staff training all demonstrate risk management and can reduce costs.
Property value:
The reinstatement value of your building (if owned) and the cost of replacing fixtures, fittings, and specialist kitchen equipment directly affect premiums.
Restaurant Insurance Cost Examples
Example 1: Independent café
- 25 covers, £180,000 turnover
- 4 full-time staff, 2 part-time
- No alcohol, breakfast and lunch only
- Clean claims history
- Basic security measures
- Estimated annual premium: £1,300–£1,700
Example 2: Family restaurant
- 65 covers, £650,000 turnover
- 18 staff including kitchen and front-of-house
- Wine and beer licence
- One minor slip claim 18 months ago
- CCTV and alarm system
- Estimated annual premium: £2,900–£3,600
Example 3: Multi-site restaurant group
- 3 locations, 220 total covers
- £2.2 million combined turnover
- 55 staff across all sites
- Full alcohol licences, late opening Friday/Saturday
- Comprehensive fire suppression and security
- Estimated annual premium: £5,200–£6,800
What’s Included in Restaurant Insurance?
A comprehensive restaurant policy typically combines several covers:
Public liability insurance:
Protects you if customers are injured on your premises or their property is damaged. This is essential for any food business open to the public. Understanding the difference between types of liability cover can help you choose appropriate limits (learn more about public liability vs professional indemnity).
Employers’ liability insurance:
Legally required if you employ staff. Covers compensation claims if employees are injured at work.
Buildings insurance:
Covers the structure if you own your premises. Includes damage from fire, flood, storm, and vandalism.
Contents and equipment insurance:
Protects fixtures, fittings, kitchen equipment, furniture, and stock. Specialist catering equipment can be expensive to replace.
Business interruption insurance:
Covers lost revenue and ongoing costs if you cannot trade following an insured event like a fire or flood.
Money cover:
Protects cash on premises and in transit to the bank.
Goods in transit:
Essential if you offer delivery services or regularly transport food and supplies.
Legal expenses:
Covers legal costs for employment disputes or contract disagreements.
Monthly vs Annual Restaurant Insurance Costs
Many insurers offer monthly payment options, but annual payment is typically cheaper overall.
- A policy costing £2,400 annually might cost £220 per month (£2,640 total)
- Monthly payments include interest and administration charges
- Annual payment saves around 8–12% on average
If cash flow is tight, monthly payments offer flexibility. If you can afford it, annual payment reduces your total insurance spend.
How to Reduce Your Restaurant Insurance Costs
Improve fire safety:
Install automatic fire suppression systems above cooking equipment. Ensure all staff complete fire safety training. Keep extinguishers serviced and accessible.
Enhance security:
Fit CCTV covering entrances, dining areas, and cash handling points. Install a monitored alarm system. Use secure cash handling procedures and limit cash on premises.
Maintain equipment:
Regular servicing of kitchen equipment reduces breakdown risk and demonstrates good management to insurers.
Train staff thoroughly:
Proper training in food safety, manual handling, and customer service reduces the likelihood of claims.
Bundle multiple sites:
If you operate more than one location, insuring them together often reduces the per-site cost.
Accept a higher excess:
Increasing your voluntary excess from £250 to £500 or £1,000 can significantly reduce premiums. Only do this if you can afford the excess if you need to claim.
Work with a specialist broker:
General insurers may not fully understand restaurant risks. Specialists can access insurers who offer better terms for food businesses.
Build a clean claims history:
Every year without a claim typically reduces your premium. Invest in prevention rather than claiming for minor losses.
Café Insurance Costs
Café insurance generally costs less than full restaurant cover because the risks are lower.
Typical café insurance costs range from £800 to £2,000 annually depending on:
- Whether you serve hot food or just drinks and cold items
- Number of covers and staff
- Opening hours
- Location and security measures
Cafés without cooking facilities pay significantly less than those with full kitchens. A coffee shop serving only drinks and pastries faces lower fire risk than one offering cooked breakfasts.
Get an Accurate Quote for Your Restaurant
Every restaurant has unique risks, and generic quotes rarely reflect what you’ll actually pay. The size of your kitchen, your claims history, your location, and dozens of other factors all influence your premium.
The fastest way to find out what restaurant insurance will cost for your specific business is to compare tailored quotes. We work with specialist restaurant insurers who understand food business risks.
Click the button to get quotes designed for your restaurant’s exact circumstances, or speak to an adviser who can answer your questions.
