Hospitality insurance for pubs, cafes and restaurants

What hospitality insurance is and who needs it

Hospitality insurance is a business package built for venues that serve food and drink. It suits cafes, restaurants, takeaway shops, bars, pubs, clubs and caterers. One policy usually combines property, loss of income and liability sections.

Some cover is required by law or by the people a venue deals with:

  • Workers compensation: employers must hold it under state and territory law. It is bought separately from the business package, and the rules differ by state.
  • Public liability for outdoor dining: councils commonly make it a condition of a footpath dining permit. Brisbane City Council, for example, asks for proof of $20 million public liability cover that notes the council as an interested party.
  • Lease requirements: commercial leases often require the tenant to hold public liability and glass cover.

What is usually covered, and common exclusions

A hospitality package can include:

  • fire and other damage to the building, fit-out, equipment and stock
  • business interruption, which replaces income and pays ongoing costs while the venue is closed after insured damage
  • spoilage of refrigerated stock and breakdown of machinery
  • glass, theft and money
  • public and products liability, including illness caused by food
  • liquor liability for licensed venues.

Common exclusions and conditions:

  • fire claims where kitchen exhausts, filters and deep fryers were not cleaned or maintained as the policy requires
  • flood, unless it has been added
  • closure caused by infectious disease, under many business interruption wordings
  • assault by security staff or crowd controllers, unless declared
  • live entertainment, dance floors and late trading, unless declared
  • reduced payouts where the sum insured is less than the real value.

How it is sold, and when a broker is the usual route

  • Direct insurers: several sell online packages for small cafes and takeaway shops.
  • Brokers: a broker can place the package, arrange workers compensation where the state scheme allows, and check lease and licence conditions.
  • Underwriting agencies: specialist hospitality and liquor liability agencies write cover on behalf of insurers, mostly through brokers.

A broker is the normal route for pubs, hotels, nightclubs and late-night bars, venues with gaming or accommodation, function centres, and any venue with a claims history or an earlier refusal. Check a broker's licence on the ASIC professional registers.

What makes hospitality cover hard or expensive to get

  • Cooking with oil, solid fuel or open flame.
  • Buildings made with insulated sandwich panels, which burn quickly.
  • Older or heritage buildings with old wiring.
  • Late trading hours and a high share of sales from alcohol.
  • Past fire, liability or theft claims.
  • Location in a flood or cyclone area. The cyclone reinsurance pool covers small business property policies with a total sum insured of $5 million or less.

Business policies generally carry a duty of disclosure. Tell the insurer about trading hours, entertainment, security arrangements and cooking methods.

Questions to ask before buying

  • What cleaning and maintenance conditions apply to the kitchen exhaust and fryers?
  • How long will business interruption cover pay for?
  • Is stock spoilage covered after a power failure as well as a breakdown?
  • Does the liability limit meet my lease, liquor licence and council permit?
  • Are outdoor seating, events and catering away from the premises covered?
  • Is flood included?
  • Are fit-out and landlord's fixtures insured by me or by the landlord?
  • What is the broker paid?

Where to complain

Complain to the insurer first, in writing, and ask for its internal dispute resolution process. Complain to the broker about the broker's own service.

If that fails, the Australian Financial Complaints Authority (AFCA) is the free external complaints body. It accepts complaints from small businesses with fewer than 100 employees. Its rules cover small business policy sections such as fire, glass, theft, money, machinery breakdown and business interruption. They exclude public and products liability. Call 1800 931 678 to check where your dispute sits. Workers compensation disputes go to the state or territory scheme regulator, not AFCA.

Find a licensed broker

Browse businesses licensed to arrange general insurance in your city, or search every state.

Sources

Last checked: 2026-10-06

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