Running a restaurant in Australia isn’t just about serving great food — it’s about managing a complex web of risks every day. From kitchen fires to customer injuries, supplier issues to equipment breakdowns, a single incident can threaten your livelihood. That’s why restaurant insurance is more than a checkbox; it’s your financial safety net.
This guide breaks down exactly what types of insurance Australian restaurants, cafés, food trucks, and hospitality operators should consider, and how the right cover keeps your business cooking, no matter what happens.
What Is Restaurant Insurance?
Restaurant insurance is a tailored policy package designed to protect food and hospitality businesses from financial losses caused by accidents, property damage, employee injuries, or legal claims.
It can include multiple types of coverage — from public liability to equipment breakdown — ensuring your operations are covered whether you run a fine-dining venue, café, bar, or mobile food truck.
Why Every Restaurant Needs Tailored Cover
No two hospitality businesses are identical. A suburban café faces very different risks from a food truck or a late-night restaurant. General business insurance often leaves critical gaps, particularly around food contamination, spoilage, or liquor liability.
A tailored hospitality industry insurance plan ensures:
- Equipment, stock, and fit-outs are insured at replacement value
- Food spoilage from power outages is covered
- Staff injuries are handled correctly under workers’ compensation
- You’re protected from claims related to allergic reactions or foodborne illness
Without this protection, even a short disruption could lead to thousands in lost revenue.
Core Insurance Covers for Restaurants
1. Public Liability Insurance
Public liability insurance is the most essential policy for any hospitality business. It covers third-party claims for injury or property damage — for example, if a customer slips on a wet floor or a waiter spills hot coffee on someone’s laptop.
Typical coverage includes:
- Legal defence costs
- Medical expenses
- Compensation payments
Tip: Restaurants that host events, offer outdoor dining, or provide delivery services should ensure they have adequate liability limits (often $20 million or higher).
2. Business Property and Contents Insurance
Your restaurant’s premises, furniture, and fit-outs are significant investments. Business property insurance protects these assets against fire, theft, vandalism, and natural disasters.
It typically covers:
- Building and contents replacement
- Kitchen equipment and refrigeration
- Outdoor furniture and signage
- Glass breakage
For rented spaces, this policy can extend to tenant improvements such as kitchen installations or custom joinery.
3. Product Liability Insurance
Serving food means accepting responsibility for what customers consume. If someone falls ill due to contaminated ingredients or an allergic reaction, product liability insurance covers the legal and compensation costs.
This cover is particularly vital for:
- Caterers and bakeries
- Takeaway outlets
- Food trucks and pop-ups
Even if the fault lies with a supplier, customers will often hold your business accountable.
4. Business Interruption Insurance
When a fire, flood, or power outage forces your restaurant to close temporarily, business interruption insurance replaces your lost income and ongoing expenses.
It can cover:
- Lost revenue
- Employee wages
- Rent and loan repayments
- Relocation costs
Example: If a fire damages your kitchen and operations halt for six weeks, business interruption insurance ensures you still have cash flow until you reopen.
5. Workers’ Compensation Insurance
Under Australian law, every business with employees must hold workers’ compensation insurance. This cover provides wage replacement and medical benefits if staff are injured on the job, from burns and cuts to slips and falls.
Hospitality work often involves repetitive motion, hot surfaces, and heavy lifting, making this policy crucial for restaurants, cafés, and bars.
It can cover:
- Lost revenue
- Employee wages
- Rent and loan repayments
- Relocation costs
Example: If a fire damages your kitchen and operations halt for six weeks, business interruption insurance ensures you still have cash flow until you reopen.
Specialised Covers for the Hospitality Industry
1. Café Insurance
Café insurance protects coffee shops and brunch venues from day-to-day risks like coffee machine breakdowns, staff injuries, and food spoilage. It can include:
- Coffee machine and equipment breakdown cover
- Food spoilage from refrigeration failure
- Public liability and property insurance
- Business interruption cover
2. Food Truck and Food Van Insurance
Running a mobile kitchen means you need more than just motor insurance. Food truck insurance or food van insurance covers both the vehicle and the kitchen equipment inside it.
Typical inclusions:
- Commercial vehicle cover for accidents and theft
- Public liability at markets and events
- Equipment and stock coverage
- Business interruption from breakdowns or accidents
3. Insurance for Food Trailers and Coffee Vans
If your business operates from a towed trailer or coffee cart, you’ll need insurance for food trailers that protects both the mobile setup and its contents. This can include:
- Fire and storm damage
- Theft of equipment or stock
- Accidental damage while towing
- Liability cover at temporary locations
Common Restaurant Risks in Australia
Restaurants and cafés face several common risks that make comprehensive insurance essential:
| Risk | Example | Recommended Cover |
|---|---|---|
| Fire or kitchen damage | Grease fire in the oven | Property + Business Interruption |
| Customer injury | Slip or scald | Public Liability |
| Food contamination | Refrigeration failure | Product Liability + Spoilage Cover |
| Equipment theft | Stolen POS system | Contents Insurance |
| Staff injury | Burn or cut | Workers’ Compensation |
How to Choose the Right Insurance Broker
Choosing the right insurance broker for restaurants can make all the difference. Look for a broker who:
- Specialises in hospitality industry insurance
- Compares quotes from multiple insurers
- Understands food safety regulations and liquor licensing
- Helps you manage claims quickly and fairly
At Global Insurance Solutions, we negotiate policies across 150+ insurers to ensure every cover is tailored to your venue’s unique risks — from fine-dining restaurants to food trucks on the go.
Protect Your Hospitality Business with Expert Support
Running a restaurant means juggling countless details — your insurance shouldn’t be one of them.
Whether you operate a bustling café, mobile food van, or late-night restaurant, the right insurance keeps your business protected, compliant, and confident.
Book a consultation with Global Insurance Solutions today for expert advice on restaurant insurance and tailored hospitality cover.
📞 Call 1300 710 665
Explore: Business Insurance | Management Liability Insurance | Commercial Property Insurance | Directors & Officers Insurance
Also Read: Understanding Hospitality Industry Risks
Frequently Asked Questions (FAQs)
1. What type of insurance does a restaurant need in Australia?
Most restaurants need public liability, business property, product liability, workers’ compensation, and business interruption insurance to stay protected.
2. Does restaurant insurance cover food spoilage or contamination?
Yes, many policies include food spoilage cover for losses caused by power failure, equipment breakdown, or contamination.
3. Is public liability insurance mandatory for restaurants?
While not legally mandatory, it’s essential — most landlords, councils, and event organisers require proof of liability cover.
4. Can I get insurance for a food truck or mobile café?
Absolutely. Food truck insurance covers the vehicle, cooking equipment, and public liability at different trading locations.
5. Does restaurant insurance cover staff injuries?
Yes. Workers’ compensation insurance covers employees for work-related injuries, including medical expenses and lost wages.
Important notice
This article is of a general nature only and 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 as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Global Insurance Solutions Pty Ltd make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Global Insurance Solutions Pty Ltd.
Risk Advisor, Insurance Broker & Director
With around 15 years in insurance, Yuvi Singh is a passionate Risk Advisor, Director, and Insurance Broker at Global Insurance Solutions. Backed by a Commerce degree and ANZIIF diploma, Yuvi leads a team servicing SMEs across industries like manufacturing, logistics, fuel, IT, and more. At GIS, clients benefit from tailored, transparent advice, access to 150+ insurers, and end-to-end risk solutions. Recognised as a 2022 Insurance Magazine Rising Star and 2024 Top Insurance Broker by Insurance Business Australia, Yuvi delivers flexible, effective outcomes with integrity and innovation.