Opening a new restaurant is exciting, from designing your menu to creating the perfect atmosphere. But before you begin serving customers, it’s crucial to ensure your business is protected with the right restaurant insurance. Restaurants face a mix of operational, food safety, staff, and public liability risks, and the wrong policy can leave new owners exposed to costly claims and disruptions.

This guide explains what insurance a new restaurant needs, why each cover matters, and how Morgan Insurance Brokers helps hospitality start-ups get the right protection from day one.

Why New Restaurants Need the Right Insurance From the Start

Launching a restaurant involves significant investment in fit-out, equipment, stock, and staffing. At the same time, new businesses face high risk because:

• You are still refining processes and training staff
• Insurance claims are more common in the early stages
• Fit-out and equipment failures can cause financial stress
• Food safety issues and customer traffic increase liability
• Even minor disruptions can impact cash flow

Because of this, choosing the right insurance from the beginning is essential for long-term success.

Essential Insurance Policies for New Restaurants

Below are the core covers every new restaurant should consider.

Business Property & Contents Insurance

This protects your physical assets, including:

• Commercial kitchen equipment
• Fit-out, furniture, and décor
• Refrigeration units
• POS systems and electronics
• Stock and ingredients

It covers loss or damage caused by fire, theft, vandalism, storms, or accidental damage.

For new restaurants with large upfront investments, this cover is non-negotiable.

Public & Products Liability Insurance

One of the most important policies for restaurants.

Public Liability insurance protects your business if a customer, supplier, or member of the public suffers:

• Injury (e.g., slip and fall, burn from hot food)
• Illness (e.g., food poisoning, allergic reaction)
• Property damage

Without liability cover, your restaurant could face legal fees, compensation payments, and financial loss.

Machinery Breakdown Insurance

New restaurants rely heavily on equipment. Machinery Breakdown covers unexpected failure of:

• Fridges and freezers
• Deep fryers and ovens
• Grills, woks, and cooktops
• Coffee machines
• Exhaust and ventilation systems

A single breakdown can shut down service. This cover helps you repair or replace equipment quickly.

Electronic Breakdown Insurance

Modern restaurants rely on electronic systems like:

• POS terminals
• Digital ordering systems
• Temperature monitoring devices
• Website booking systems

Electronic Breakdown covers failure due to power surge or internal malfunction.

Stock & Food Spoilage Insurance

Restaurants store high-value stock and perishable food. This cover protects against spoilage due to:

• Power outages
• Refrigeration failure
• Machinery breakdown
• Contamination

This is especially critical for new restaurants still establishing cash flow.

Business Interruption Insurance

If your restaurant is forced to close due to an insured event (like fire, storm, or equipment failure), this cover helps pay:

• Rent
• Wages
• Utilities
• Supplier contracts
• Lost profit

Business Interruption is essential for new restaurants because even a short closure can cause severe financial strain.

Glass & Signage Insurance

Restaurants often have shopfront glass, partitions, mirrors, and illuminated signage. Accidental breakage can be costly, this cover pays for replacement.

Money & Theft Insurance

Protects against:

• Theft of cash on premises
• After-hours break-ins
• Armed robbery
• Employee theft

Restaurants often handle cash, increasing risk.

General Property (Portable Equipment)

If your restaurant uses portable equipment for:

• Catering
• Outdoor events
• Pop-up stalls
• Deliveries

General Property covers loss, theft, and accidental damage of items taken off-site.

Management Liability Insurance

If your restaurant employs staff, Management Liability protects owners and managers from claims related to:

• Unfair dismissal
• Bullying or discrimination allegations
• OH&S breaches
• Wage or award disputes
• Mismanagement claims

For new restaurants building their team culture, this is vital protection.

Cyber Insurance

New restaurants use digital systems for online bookings, POS integration, QR code menus, and delivery platforms. Cyber Insurance protects you against:

• Ransomware
• Payment terminal hacks
• Data breaches
• Invoice fraud
• Website outages

Even small restaurants are targeted by cyber criminals.

Why Standard Insurers Often Mis-Cover Restaurants

Generic small-business insurance rarely covers restaurant-specific risks such as:

• High-heat cooking equipment
• Food contamination
• Refrigeration failure
• Staff injuries
• High customer turnover

Working with a hospitality-specialist broker ensures you get the correct cover without dangerous exclusions.

How Morgan Insurance Brokers Helps New Restaurants

Starting a restaurant is stressful, your insurance shouldn’t be.

Morgan Insurance Brokers specialises in hospitality insurance, helping new restaurants secure the right cover at competitive prices.

We help by:

• Comparing policies from specialist hospitality insurers
• Tailoring cover based on your cooking methods, equipment, and operations
• Identifying gaps that standard insurers miss
• Providing guidance on compliance and risk management
• Managing your claims quickly and professionally

We work for you, not the insurer, ensuring your restaurant starts strong and stays protected.

Get a Quote for New Restaurant Insurance

If you’re opening a restaurant, make sure your business is fully protected from day one with adequate restaurant insurance.

Contact Morgan Insurance Brokers for a free, no-obligation quote tailored to your new restaurant.