Restaurant & Café Property Insurance
A restaurant is a commercial premises with significant cooking and fire exposures. Cooking ranges, fryers, chargrills and the extraction system above them are the reason this class is rated apart from ordinary retail, and the extraction ducting is an area which can contribute significantly to fire losses.
Grease accumulation within extraction systems can significantly increase fire risk. It builds up inside the ductwork above the cooking line, and a flare up in the kitchen can carry into a duct that runs through the building's structure. That is why many policies include conditions relating to extraction cleaning, commonly with a stated frequency with a stated frequency and a requirement that it is done by a competent contractor.
Where there is residential above, the risk changes character rather than degree. A kitchen fire in a closed restaurant at midnight becomes a life safety matter for the people asleep upstairs, and insurers price and condition it accordingly.
We can advise owners letting to restaurant and café operators, and operators who own the building they trade from, on how the premises should be insured and on the conditions that most often decide a claim.
Common claims and risk exposures
The exposures that produce claims in this trade, rather than a generic list.
Fire in the extraction system
The defining claim for this class. Grease laden ductwork ignites from a flare up below, and because the duct passes through ceilings, voids and sometimes the full height of the building, the fire travels where the compartmentation was supposed to stop it.
Deep fat frying and unattended cooking
Fryers hold a large volume of oil at a temperature close to its auto ignition point. Thermostat failure, overfilling and cooking left unattended during a service rush are the usual sequence, and the resulting fire is fierce and fast.
Gas and the interlock
Where there is gas cooking with mechanical extraction, a gas interlock should prevent the gas operating when the ventilation is not running. Its absence, or its disconnection because it keeps tripping, is something insurers ask about directly.
Late hours and an empty building
Kitchens close late and the building then stands empty with residual heat in the equipment. A significant share of restaurant fires are discovered well after the last member of staff has locked up, which is why detection and its monitoring matter so much here.
Water, drainage and the floor below
Commercial kitchens use a great deal of water and produce blockages from fat and food waste. Overflowing drainage in a kitchen above a basement or a neighbouring unit is a frequent and unglamorous claim that has nothing to do with fire.
The cover we arrange
We arrange insurance around the property, its use, construction, occupancy and ownership structure. The cover available will depend on the individual risk and the terms offered by insurers.
Buildings
The structure and landlord's fixtures on a reinstatement basis. On this class the extraction system, canopy and any grease trap are significant items and should be identified, because who owns them is often unclear until a claim.
- Structure and landlord's fixtures
- Extraction canopy and ductwork where owned
- Professional fees and debris removal
- Compliance with current building regulations
Property owners liability
Liability arising from the building itself and any retained access, including the route to flats above where they exist. Distinct from the operator's public liability for slips, allergens and service.
- Injury from the building and retained areas
- Damage to neighbouring premises
- Limits typically £5m or £10m
- Defence costs included
Loss of rent or business interruption
For an owner, rent lost while the premises cannot trade. For an owner occupier, the equivalent cover is business interruption on gross profit, and the indemnity period needs to allow for a kitchen fit out as well as the building works.
- Rent, or gross profit for an owner occupier
- Indemnity period of 24 months or more
- Allows for kitchen refit, not just structure
- Alternative premises where practical
Glass and frontage
Where the premises front a street, the glazing carries the same exposure as any retail unit, usually written as a separate section with its own excess.
- Plate glass and frontage
- Boarding and temporary glazing
- Signage and fascia
- Separate, lower excess
Engineering inspection
Pressure systems such as coffee boilers, steamers and compressors require statutory thorough examination. It is routinely missed on café premises because the equipment looks domestic.
- Coffee machines and steam equipment
- Compressors and pressure vessels
- Statutory inspection, not damage cover
- Certificates retained
What an underwriter will ask
Having these to hand shortens the process considerably, and usually improves the terms.
- Type of cooking: gas or electric, and whether there is frying, chargrilling or solid fuel
- Extraction: canopy type, duct route through the building, and filtration
- Duct cleaning frequency, the contractor used, and whether certificates are held
- Whether a gas interlock is fitted and functioning
- Fire suppression over the cooking line, if any, and its service record
- Trading hours, and whether the premises is left with equipment recently used
- Whether there is residential accommodation above, and how it is separated
- Fire detection, whether monitored, and any previous fire or flood claims
What affects the cost of your insurance?
The main factors insurers consider when assessing the premium.
How the food is cooked
The largest factor. Electric and light cooking rate closest to ordinary retail; frying, chargrilling and solid fuel move the premium sharply and reduce the number of insurers prepared to quote.
Extraction, cleaning and suppression
A documented cleaning regime and a serviced suppression system over the cooking line are important factors insurers consider, and on higher hazard cooking they often decide whether terms are offered at all.
Residential above
Flats over a restaurant narrow the market considerably. Fire separation, a separate residential entrance and linked detection are what make the combination placeable.
Claims and trading pattern
Previous fire damage, and late night trading with limited staff at close, both harden terms. So does a history of escape of water from kitchen drainage, which insurers read as a maintenance signal.
Conditions and exclusions to consider
Terms vary between insurers, so treat these as the questions to ask rather than a description of any one policy.
Duct cleaning not carried out
Where cover depends on cleaning at stated intervals, failing it is a breach of condition rather than an oversight. On this class it is the most likely single reason for a fire claim to be reduced or declined, and certificates are the first thing requested.
Solid fuel cooking not declared
Wood fired ovens, charcoal grills and tandoors carry a different risk from gas or electric, including hot ash disposal. Adding one without telling the insurer changes the risk materially.
Operator's stock, equipment and fit out
The building policy covers the structure and landlord's fixtures. Kitchen equipment, furniture, stock and the tenant's fit out are the operator's to insure, and in a restaurant the fit out frequently exceeds the value of the shell.
Gradual damage from steam and grease
Deterioration of surfaces, ductwork and fabric from years of heat, steam and grease is wear rather than damage. It is maintenance, and on older premises it is a common reason a claim is only partly met.
Common questions
How often does the extraction ducting need cleaning?
It depends on how heavily you cook, and the policy will state the interval. Heavy frying commonly requires quarterly cleaning, lighter use six monthly or annually. The important part is keeping the certificates, because the insurer will ask for them after a fire rather than before.
I own the building and the restaurant. Do I need two policies?
Not necessarily, but you do need both sets of cover. The building, your contents and fit out, your stock, your public and employers' liability and your business interruption can usually sit on one package for an owner occupier, which avoids the gaps that appear when the building and the business are insured separately.
Does the landlord's policy cover my kitchen equipment?
Generally no. A landlord insures the structure and their own fixtures. Ranges, fryers, refrigeration, furniture and stock belong to the operator, and the extraction canopy is the item most often disputed, so it is worth settling in writing who insures it.
Is fire suppression over the cooking line required?
It is not a legal requirement, but on frying and chargrilling many insurers now treat it as a condition of cover or price heavily for its absence. Where it is fitted it needs servicing at the stated intervals to remain effective as a condition.
How do I get a quote from True Risk Solutions?
Call 01304 262880 and speak to a broker, or email info@truerisksolutions.co.uk with what you do, what you need cover for and a phone number with the best time to call, and a broker will call you back. We need a phone number to quote, because the cover and the price depend on questions that are quicker to answer on a call than by email.
Related trades
Speak to a specialist who understands your industry
Tell us about your business and the work you undertake, and we will come back to you with cover options built around it. Call 01304 262880, or email us with a phone number and the best time to call and a broker will ring you back.