Insurance For Food Businesses
Congratulations! You must be here, reading this post because you have decided to start your food business! Have you got your business name and logo sorted? Are you not sleeping due to the excitement!?

Reality check, starting a food business is oh so exciting but we know that every new business has to balance the boring essentials with the excitement. That is why we talked to Melissa Donaldson from Allsure Insurance

Allsure Insurance have been looking after the insurance needs of their clients for 30 years. They help you have the peace of mind that you have the right solution and the right insurance representative helping you every step of the way. They understand the risks facing your industry and your business, and they have the experience and expertise to tailor an insurance solution to meet the needs of your business.

Melissa, firstly can you tell us why food businesses need liability insurance?

Do a quick google search on food poisoning claims. That should be enough to make you realise how important it is to have the right insurance for food businesses.

As an example, in 2012 KFC lost a case in where they caused a young girl injuries due to food poisoning. She was very very ill and will require on going care, that case was $8.3 MILLION! Would you have that money to pay a claim?

How about you have cleaned your floor at the end of the day, and a customer still comes in, and slips on the wet floor.? They didn’t know you were closed, or the floor was wet. Imagine the potential claim. Could you even afford to defend the claim, let alone pay a settlement?

Your staff are amazing, although a little inexperienced. One accidentally spills a hot drink down the back of one of your customers. What if they receive third degree burns, need surgery, cannot work for weeks and require on going care of the burns?

You make this super tasty dip, it has olives in it, one day a pip ends up in the dip. A customer takes a large scoop, bites down and breaks their front tooth on the pip! You will be expected to pay their dental.

The list goes on.

In today’s day and age of people wanting to ‘sue you’, you MUST have public and product insurance as a minimum.

We recommend that you always take out a minimum of $20 million in cover.

Do food businesses need building insurance?

If you lease a building for your business, it is usually your responsibility under the lease agreement to pay for out goings, this will often mean paying for the building insurance. It can also mean you are responsible for the landlords public liability and loss of rent. Some landlords will let you source the cover, some may take out the insurance, and send you the bill. Check this before signing a lease.

My business has a lot of equipment and stock, how can I protect these?

Make sure your contents are covered. Some insurance policies will have an under insured clause. This basically means you need to have adequate sum insured on your contents (chairs, tables, kitchen equipment, plates etc). You need to make sure the sum insured is enough to purchase these items again as a new price. If in doubt give us a call and we will make sure you are set up with the right insurance for your needs

Is there any other insurance for food businesses?

You may need insurance for money, theft, glass, equipment and breakdown. If you have fridges and freezes you rely on, cover for equipment breakdown is a good idea. You can even insure the loss of the stock, if they breakdown.

Workers Compensation Insurance, is a legal obligation if you have staff. Some states have the same rates regardless on the insurers, some states the prices vary

Why is insurance so important?

Insurance helps you minimise your risks. You also can reduce your risk with good policies and procedures. Keep good documents on cleaning, food supplied, staff training, temperature checks. Take temperature on new food stock into the business, record it. If you keep food warm, you should keep regular checks on temperature. Know when food went in, and when it should be thrown out.

Make sure all your staff have food handling training. Have regular meetings with staff about potential areas of risk, record the meetings.

When you are setting up, or even perhaps purchasing an existing business, you will need to consider how you are going to cook the foods you wish to sell. 
Remember, insurers, do not like wok cooking, or big deep fryers. Why is this you may ask… because they have the potential to cause fires! Even tea towels left in warm places have been know to spontaneously combust! 
Remember to always be fire safe. If you need a fryer for your business, a new, smaller fryer is best. All canopies will require a scheduled maintenance program in place, for an insurer to offer you cover. 
The more you minimise the risks, the happier an insurer is to insure you and it is usually cheaper too

I need help with insurance for my food business!

Feeling a bit lost? Finding it all too confusing? Remember we are here to help YOU. Brokers don’t charge for quotes or the advice and recommendations they give you. You will have the best policies for your business and you. You can have different payment options. You will have us to help when it comes to making claims. You can be put in touch with other professionals to help you in business such as an accountant, solicitor and bookkeepers.

Your business is our business.

Give me a call, and lets see how we can help you.

Remember “ Having the right insurance is no accident”

Start Your Food Business logo-footer Insurance for Food Businesses

Melissa Donaldson

Allsure Insurance Agencies International Pty Ltd

Everything You Need To Start Your Food Business

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