Restaurant Insurance Calculator
What restaurant and cafe insurance costs in 2026 — and what drives the price
Last updated: July 2026
How much does restaurant insurance cost in the UK?
Restaurant insurance in the UK typically costs £600 to £1,200 a year for a small independent restaurant or cafe, £1,200 to £2,500 for an established site with a full kitchen and a late licence, and £3,000 upwards for large or multi-site operations. The calculator above prices it from your turnover, public liability limit, staff numbers, the value of your fit-out and stock, and the specific hazards a kitchen brings.
What a restaurant policy needs to include
- Public liability. The classic claims are a customer slipping on a wet floor and food poisoning. £2 million is standard; £5 million is often written into a lease or required by a landlord.
- Product liability. Specifically covers illness or injury caused by the food you serve. Do not assume public liability alone answers a food poisoning claim – check the wording.
- Employers' liability. Compulsory from the first employee, minimum £5 million. Kitchens produce burns, cuts and slips at a far higher rate than most workplaces, so this is not a formality.
- Contents, fit-out and stock. Commercial kitchens are expensive. Insure the fit-out, the extraction system and the equipment at replacement cost, and remember the walk-in fridge full of stock.
- Deterioration of stock. A freezer breakdown overnight can write off thousands of pounds of food. This is a separate section in most policies.
- Business interruption. The most important cover a restaurant can buy. A kitchen fire does not just cost you the kitchen – it closes you for weeks while rent, wages and loan payments continue.
Why the kitchen drives the premium
Insurers rate restaurants primarily on fire risk, and the biggest single factor is the deep fat fryer. Fryer fires are frequent, spread fast through extraction ducting and cause total losses; expect a fryer to add roughly £120–£180 a year, and expect the insurer to insist on a fixed fire suppression system over the range, regular duct cleaning by a certificated contractor, and no fryers left unattended. A wood-fired or charcoal oven adds a similar loading. An alcohol licence running past midnight increases the liability rating, because late-night drinking correlates strongly with assault and glassing claims. If you employ your own delivery drivers the premium rises again, because a moped on the road is a motor risk sitting on top of your liability exposure.
Worked example
An independent restaurant in Bristol turns over £200,000, employs six staff, has a fit-out and stock worth £60,000, runs deep fat fryers, holds an alcohol licence past midnight, and buys £5 million of public liability with business interruption. Liability works out at £190 × 1.00 × 1.30 = £247. Employers' liability for six staff adds £570. Contents at 1.1% of £60,000 adds £660. Fryers add £140 and the late licence £165. That subtotal of £1,782 plus 12% business interruption gives about £1,996 a year, or roughly £2,236 once Insurance Premium Tax is added.
How to bring the premium down
The levers that actually work are physical. Install a fixed fire suppression system over the cooking range – insurers discount heavily for it and some will not quote without one. Keep dated certificates for extraction duct cleaning, gas safety and fixed electrical testing; an insurer that has to ask for them is an insurer that is loading your premium. Maintain a documented HACCP food safety system and a five-star Food Hygiene Rating, because product liability is rated on it. Fit a monitored intruder alarm and a fire alarm, pay annually rather than by instalments, and use a broker who places hospitality risks – the generic comparison sites are consistently uncompetitive once a commercial kitchen is involved.
Frequently asked questions
How much is restaurant insurance a year?
A small independent restaurant or cafe typically pays £600 to £1,200 a year. An established site with a full kitchen and a late alcohol licence usually pays £1,200 to £2,500. Large or multi-site operations pay £3,000 and upwards.
Does public liability cover food poisoning?
Not always. Food poisoning claims fall under product liability, which covers illness or injury caused by the food you serve. Most hospitality policies bundle the two, but you must check the wording — a bare public liability policy may not respond.
Why do deep fat fryers increase the premium?
Fryer fires are frequent, spread rapidly through extraction ducting and often cause a total loss. A fryer typically adds £120 to £180 a year, and most insurers will require a fixed fire suppression system over the range plus certificated duct cleaning.
Is business interruption cover worth it for a restaurant?
For most restaurants it is the single most valuable section. A kitchen fire closes you for weeks while rent, wages and loan repayments continue. Business interruption pays the lost gross profit and ongoing costs, and typically adds around 12% to the premium.
Do I need employers' liability for casual or agency kitchen staff?
Yes. Employers' liability is compulsory from your first employee, including part-time, casual and most agency workers, with a minimum of £5 million. Trading without it risks a fine of up to £2,500 for every day you are uninsured.
Source: employers' liability requirement from the HSE – Employers' Liability (Compulsory Insurance) Act 1969. Food business registration and hygiene obligations from Food Standards Agency. Insurance Premium Tax (12%) from GOV.UK. Premium ranges reflect 2026 UK hospitality market rates.