Insurance options and average cost of insuring a restaurant

In France, it's essential to have insurance if you're running a restaurant! The restaurant business comes with many risks, like chef injuries, food poisoning, refrigeration breakdowns, vandalism, natural disasters, and more. For most commercial activities, insurance is indispensable.

Mar 27, 2024

In France, it's essential to have insurance if you're running a restaurant! The restaurant business comes with many risks, like chef injuries, food poisoning, refrigeration breakdowns, vandalism, natural disasters, and more. For most commercial activities, insurance is indispensable.

So, what kind of insurance should you get for your restaurant?

Micco has outlined several crucial types of insurance for you to consider. Before making a final decision, it's necessary to inquire about insurance quotes from several providers. By comparing quotes, you can understand the pricing and services offered by different insurance companies.

Before diving into these details, if you're curious about how to start your own restaurant in France or set up a professional bank account for it, you can explore “How to Find Funding for Your Restaurant Business?” You can also reach out to Micco directly for guidance.

Micco stands as an all-in-one financial platform tailored for business creators, facilitating a comprehensive array of services. These include streamlined procedures for company registration, professional bank account establishment, capital deposit management, and more.

Micco's commitment to empowering business creators extends to:

  • Effortless company registration processes
  • Seamless professional bank account setup
  • Convenient capital deposit management solutions
  • A suite of additional financial tools and resources catered to entrepreneurs

With Micco, business creators can access a one-stop solution designed to streamline their financial operations and support their growth endeavors effectively.

1. Restaurant Professional Liability Insurance

This insurance provides coverage for any losses caused to customers, suppliers, or third parties during business operations.

For restaurants, this includes losses caused by employees, buildings, equipment, and food.

Restaurants pay monthly premiums for professional liability insurance. If a loss occurs, the insurance company will cover repair costs, up to the deductible*.

  • In most insurance contracts, the insured must pay a deductible amount in the event of a loss, which is a fixed amount or percentage of the claim cost.

For example: If a server accidentally spills hot food on a customer during service, the liability insurance coverage includes:

  • Bodily injury: Compensation for burns and any cuts caused by broken dishes (hospitalization, leave, etc.).
  • Property damage: Compensation for cleaning or replacing stained clothing.
  • Non-material damage: Losses related to trauma.

Restaurants often experience damages during operations. The compensation for such losses can be very expensive, so it's essential to purchase professional liability insurance.

2. Comprehensive Site and Property Insurance

This insurance provides compensation when premises or property face significant risks, covering the property of business premises and restaurant owners.

Risks include natural disasters, fires, leaks, vandalism, and various thefts. It's essential to specify the risks covered in the contract, such as storms or tides for seaside restaurants.

This insurance may include coverage for business interruption due to claims, including economic losses due to closures and reduced business after losses. If not included, it's best to purchase separate coverage.

3. What are the specific types of insurance for the restaurant industry?

There are many specialized insurances tailored to the restaurant industry. These include two categories: merchandise loss insurance and employee protection insurance.

Restaurant Merchandise Loss InsuranceOne of the main risks restaurant owners face is merchandise loss. Purchasing food and beverages is one of the restaurant's most significant expenses. Therefore, it's essential to insure against this risk. There are two main types of insurance:

  • Refrigeration insurance: This restaurant insurance aims to provide coverage for losses incurred when refrigeration rooms or refrigerated vehicles fail or malfunction. The consequence of such accidents is the interruption of the cold chain, resulting in significant losses for restaurant owners.
  • Sommelier insurance: If a restaurant has a large, high-quality wine cellar, then restaurant insurance must include coverage for losses or damages to wine bottles, champagne, and general alcohol.

Restaurant Employee InsuranceThis insurance allows employees to receive additional medical benefits, which is especially important in restaurants where employees face many risks: using sharp tools, handling hot ovens, plates, and dishes, standing, and lifting heavy objects.

Restaurant Insurance: What's the average price?Restaurant insurance consists of one or more types of insurance tailored to the restaurant's business and needs. Therefore, it's challenging to determine exact costs. Factors to consider include:

  • Type of business: Business insurance for a fast-food restaurant differs from that of a Michelin-starred restaurant.
  • Size of premises: The larger the premises, the higher the insurance cost.
  • Turnover of the restaurant.
  • Location of the restaurant: The likelihood of losses differs for seaside restaurants and city center restaurants.

The minimum cost of restaurant insurance is approximately €2,000 per year.

If you're interested in starting a restaurant, consider Micco.

As a financial services company, Micco provides comparable services and solutions tailored to the needs of modern businesses. With a user-friendly platform, competitive pricing, and a commitment to customer satisfaction, Micco is another viable option worth exploring.

Whether you're a freelancer, startup, or established enterprise, Micco offers the tools and support needed to streamline financial operations and drive business growth. Check out Micco today to discover how it can complement your business banking needs.