Reviewed by licensed advisers at Smiths Insurance & KiwiSaver (FSP712931) · Updated 11 November 2026

Cafe and Restaurant Insurance NZ: Covers for Food Businesses

Cafe and restaurant insurance in NZ is public liability (a customer is hurt or made ill) plus cover for the fit-out, equipment and stock, and business interruption for the weeks you cannot trade after a fire or flood. Staff, delivery vehicles and cyber add to the list as the business grows. Cost depends on turnover, cooking method, premises and claims history, so it is set by the insurer after questions.

In short

Three things can stop overnight: the kitchen, the stock in the fridge and the customers walking in. Each has a different cover.
Landlords and lease documents often ask for public liability and a certificate. Read the insurance clause before you sign or renew.
Cost turns on how and where you cook, so an adviser needs a short call to ask.

What landlords and insurers ask food businesses

Proof of public liability, often written into the lease
How you cook: fryers, woks, solid fuel
Whether the extraction ducting is cleaned and the records kept
Whether your food control plan and verification are up to date
Whether you sell alcohol

Kitchen fire

Grease in the ducting can close a kitchen for months while wages and rent carry on.

Customer made ill

Food poisoning can fall outside ACC, so the wording on food-borne illness matters.

Fridge or freezer failure

A compressor fault can spoil a week of stock overnight.

Lease conditions

Many leases make the tenant responsible for the fit-out and the glass.

Work out what to raise

Tick what applies to you

I lease the premises
Leases often say who insures the fit-out and the glass.
Covers to raise: Public liability, Premises, stock and interruption
We use deep fryers, woks or a grill
Insurers tend to ask about cooking method and ducting.
Covers to raise: Premises, stock and interruption, Public liability
We cook with wood fire or charcoal
Covers to raise: Premises, stock and interruption
We serve alcohol
Covers to raise: Public liability, Statutory liability
We have staff
Covers to raise: Statutory liability
We deliver with our own vehicle
Covers to raise: Business vehicles, Public liability
We take online orders or card payments
Covers to raise: Cyber
We hold a fridge or freezer full of stock
Ask how spoilage after a breakdown is worded.
Covers to raise: Premises, stock and interruption

What these covers do not pay

A fine under health and safety law. Those can never be insured.
Repairing or replacing a fryer or fridge that wears out or breaks down on its own.
Gradual damage, such as grease build-up that was never cleaned.
Your own injury at work. That is a question for ACC and income protection.
Food that was simply out of date or mis-stored, unless the wording says otherwise.

General information only. Whether a cover responds depends on the policy wording.

Which clause is in your contract?

Interested party noted
The client, head contractor or financier asks to be named on your policy so they are told about changes such as cancellation. Wording varies, and in some contracts it means something different from being an extra insured.
Covers to raise: Public liability, Contract works
What it does not decide: Being noted does not by itself give that party cover under your policy or a right to claim. That depends on how the insurer words it.
Waiver of subrogation
Subrogation is an insurer's right to recover a claim from whoever caused the loss. A waiver gives up that right against a named party, such as the client.
Covers to raise: Public liability, Contract works, Premises, stock and interruption
What it does not decide: It does not decide whether your insurer agrees to the waiver. Some policies need it endorsed in advance, and giving it up without telling the insurer can affect a claim.
Data and privacy duties
The contract asks you to protect client information, keep it secure and report a breach. It often refers to the Privacy Act 2020, which has its own duties on notifying serious breaches.
Covers to raise: Cyber, Professional indemnity
What it does not decide: It does not decide whether a breach is insured. Cyber policies differ on response costs, privacy claims and fines, and some penalties cannot be insured at all.

General information, not legal advice. The full clause and the policy wording decide how it applies.

Check your certificate of currency against the contract

Check the insured name, limit and dates match the contract. The policy wording, not the certificate, decides what is covered. How a certificate of currency works

What each cover may pay, and what it usually does not

Public liability
May respond to
Injury to customers and damage to other people's property, including food-borne illness if the wording extends to it.
Common trigger
A spill, a hot drink, a claim from a diner or a neighbouring tenant.
Usually not covered
Your own stock and equipment, and fines.
Premises, stock and interruption
May respond to
Fit-out, equipment and stock, plus income lost while insured damage closes the kitchen.
Common trigger
Fire, flood, theft or a break-in.
Usually not covered
Wear and tear, and damage that builds up over time.
Statutory liability
May respond to
Defence costs if a regulator investigates or prosecutes, depending on the wording.
Common trigger
A serious workplace incident or a regulator inquiry.
Usually not covered
Health and safety fines, which can never be insured (Health and Safety at Work Act 2015, s 29).
Business vehicles
May respond to
The delivery van, if it is used for the business.
Common trigger
A crash or theft while delivering food.
Usually not covered
Use that was not declared to the insurer.
Cyber
May respond to
Costs after a breach of customer details or an outage of online ordering, depending on the wording.
Common trigger
A hacked ordering system or card terminal.
Usually not covered
Hardware that fails through age.

If something goes wrong

Fire starts in the extraction duct
A fryer flare-up spreads into grease in the ducting. The kitchen is closed for repairs while rent and wages carry on.
May respond: Premises, stock and interruption
Have ready
- Duct cleaning records
- Photos of the damage
- Fit-out and equipment lists
- Last three months of takings
A customer says the meal made them ill
A diner reports being unwell after eating and writes to the cafe about it.
May respond: Public liability
Have ready
- Food control plan and verification records
- What was served and when
- Supplier details
- Any staff illness log
Freezer fails overnight
A compressor stops after close and the stock is spoiled by morning.
May respond: Premises, stock and interruption
Have ready
- Stock list and invoices
- The repair report
- Temperature logs
A guest slips on a wet floor
A customer falls and damages a phone and a jacket. A neighbour tenant also reports water damage.
May respond: Public liability
Have ready
- Photos of the area
- Staff account of what happened
- Your lease insurance clause
- Your certificate of currency

Typical examples, not real claims. ACC deals with most injuries, so an injury claim is mostly about property and legal costs. Whether a claim is paid depends on the policy wording and the facts.

The covers, one by one

Cover	The question it answers	Who usually looks at it
Public liability	Who pays if a customer slips, is burned, or says our food made them ill?	Every food business, including takeaways
Building, fit-out and contents	What if a fire destroys the kitchen, counters and signage?	Owners of the fit-out, and the building if you own it
Stock and equipment	What if the freezer fails or the fryer is stolen?	Anyone with refrigerated stock or costly kitchen gear
Business interruption	How do wages and rent get paid while we are closed?	Anyone who depends on daily takings
Statutory liability	Who covers defence costs if a regulator investigates?	Businesses with staff
Business vehicle	What if the delivery van is written off?	Caterers and anyone running their own delivery
Cyber	What if the booking system or card terminal is hit?	Online ordering or stored customer data

New to hospitality? Our business insurance startup guide covers the first decisions. The wider picture sits in the business insurance hub.

Public liability and food

Everyday claims are not dramatic: a wet floor, a hot drink spilled on a child, a coat ruined by a falling shelf. The claim owners fear is food poisoning, and the wording matters. Some policies cover food-borne illness inside public liability, and some treat it as a separate extension. Ask for it by name.

A slip or a burn is usually an ACC matter, and section 317 of the Accident Compensation Act 2001 bars most compensatory damages claims for that kind of injury. Illness from swallowing a virus, bacterium or protozoan is different. Under s 25(1)(ba) it is not an "accident" unless someone else's criminal act caused it, so a customer made ill by your food may fall outside ACC and outside the s 317 bar.

Takeaways are not lower risk because nobody sits down. Hot oil, a busy counter and ready-to-eat food are the same hazards. If a landlord or mall asks for proof of cover, the insurer issues a certificate of currency.

Fire and the fit-out

Commercial kitchens combine heat, oil and extraction ducting that quietly collects grease. Insurers ask about fryers, solid fuel ovens, wok burners, duct cleaning and fire suppression. Answer accurately and keep your cleaning records, because a claim can turn on them.

As a tenant you often insure your own fit-out, equipment, signage and contents, while the landlord insures the building. Some leases also make the tenant responsible for glass. Give your adviser the lease clauses, and ask what the sum insured includes. For the building side, see commercial property insurance.

Business interruption

After a kitchen fire you may be shut for months while repairs and inspections happen. Business interruption pays lost gross profit and extra costs, but only after insured physical damage. Choose an indemnity period on a realistic timeline, because ordering equipment and booking tradespeople takes time. Many NZ policies also exclude notifiable disease closures, so read the wording before assuming a food safety closure is covered.

Stock, spoilage and theft

A power cut or compressor failure can spoil a week's stock overnight. Spoilage is commonly an optional extension, and many policies need an insured cause or maintained equipment. Ask about spoilage, equipment breakdown and the excess. Check that stock, cash and equipment limits match what you actually hold.

Staff, food safety and alcohol

Most hospitality owners are employers. Statutory liability can respond to defence costs when a regulator investigates, but it cannot pay a fine, because section 29 of the Health and Safety at Work Act 2015 makes cover for fines under that Act of no effect.

Under the Food Act 2014, Schedule 1 lists cafes, restaurants and takeaways as subject to food control plans, and s 28 requires such a business to operate under the applicable measure. An insurer may ask whether your plan and verification are up to date.

If you sell alcohol under the Sale and Supply of Alcohol Act 2012, ask whether your public liability extends to an incident with an intoxicated customer. Some policies exclude liquor unless declared.

What policies usually leave out

Spoilage unless extended
Gradual damage, wear and poor maintenance
Losses where cleaning or suppression conditions were not met
Notifiable disease closures
Fines and penalties
Your own illness or injury as an owner. If the business leans on you or a partner, see business protection.

How we help

A Smiths adviser will phone you to talk through which covers to look at. Some business covers we refer to another licensed Financial Advice Provider, and we will tell you who, and how they are paid, before your details go to that firm. There is no instant online quote. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy. Cover and price depend on insurer underwriting and the policy wording. Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931).

Frequently Asked Questions

How much does restaurant insurance cost in NZ?

It varies too much for one number. Turnover, cooking method, alcohol, premises, fit-out value and claims history all move it.

Do I need public liability for a takeaway shop?

The law does not set it, but landlords, malls and event organisers often ask for it. Check your lease.

Does public liability cover food poisoning?

It depends on the wording. Some policies include food-borne illness and others treat it as a separate extension.

Does insurance cover a fridge breakdown?

Only if the policy includes spoilage or equipment breakdown, and usually only for an insured cause.

References

Related industries

Protect the people behind the business

Liability cover protects the business from claims. If you or a business partner could not work, or died, key person and shareholder cover can help keep the business, and your family, going.

Key person cover, if the business relies on you
Shareholder cover, so partners can buy each other out
Income protection for owners and the self-employed

Cover the kitchen before the doors open

A licensed Smiths adviser phones you and asks how you cook, whether you serve alcohol and what your lease says about insurance. If we refer you to another licensed firm, we tell you who first. Smiths Insurance & KiwiSaver may receive a commission or referral payment if you buy.

A licensed Smiths adviser phones you. If we refer you to another licensed firm we tell you who first and how they are paid.

Read the full insurance guides

Tell us how the business trades and a Smiths adviser will phone you to talk through which covers to look at. Check what cover you need. No cost to talk it through.