Written by
James Mitchell
Ghost Kitchen Operations Director & Industry Expert
Per month minimum
Daily fine (no staff insurance)
Standard liability cover
Average takeaway cost/year
Running a food business in the UK requires the right insurance protection. Whether you're operating a ghost kitchen, restaurant, or catering service, understanding required coverage and costs is essential. This guide breaks down everything from legally mandatory policies to optional coverage that protects your business.
4 Critical Things You Must Know
Employers' Liability Is Law
If you employ anyone (even part-time, temps, or volunteers under instruction), you MUST have employers' liability insurance. Fines: £2,500 per day per employee without it.
Public Liability Not Legally Required
Surprising but true - it's not a legal requirement. However, most venues, councils, and events require £5M minimum cover to operate on their premises.
Food Hygiene Certificates Required
Insurers often require Level 1 food hygiene certificates for all staff. Without them, claims may be denied.
Deep Fat Fryers Cost More
Large freestanding fryers add £70-£130 to annual premiums due to fire risk. Built-in units typically don't increase costs.
Types of Food Business Insurance
Public Liability Insurance
What it covers:
Injury to public, property damage, customer claims
Example claim:
Customer slips on wet floor, sues for £10,000 medical costs
Product Liability Insurance
What it covers:
Food poisoning, allergic reactions, product defects
Example claim:
Customer gets food poisoning from spoiled ingredients, claims £5,000
Employers' Liability Insurance
What it covers:
Employee injury or illness at work
Example claim:
Chef burns hand, claims compensation for medical costs and lost wages
Contents Insurance
What it covers:
Equipment, fixtures, fittings theft or damage
Example claim:
Fire destroys £15,000 of kitchen equipment
Stock Insurance
What it covers:
Food spoilage, ingredient damage or theft
Example claim:
Freezer breaks, £3,000 of ingredients spoil
Business Interruption Insurance
What it covers:
Income loss from forced closure
Example claim:
Flood closes kitchen for 2 months, covers lost revenue
How Much Does Food Business Insurance Cost?
Small Takeaway / Ghost Kitchen
Medium Restaurant (5-10 staff)
Large Catering Business
What Affects Your Insurance Cost?
Business Type
Takeaways cheaper than sit-down restaurants; ghost kitchens often lower risk
Number of Employees
Each employee adds to employers' liability premium (£400-£500 base)
Annual Turnover
Higher revenue = higher premiums; typical increase 0.5-1% of turnover
Location
Central London more expensive; flood risk areas cost 10-20% more
Claims History
Previous claims can increase premiums 20-50%; clean history gets discounts
Equipment Value
Deep fat fryers add £70-£130; specialized equipment increases contents premium
Coverage Level
£1M to £5M public liability changes premium significantly
Top Insurance Providers for Food Businesses
Simply Business
Key Features:
- Online quotes in minutes
- £2M public liability standard
- Bundle discounts available
Hiscox
Key Features:
- Specialized food business policies
- Professional indemnity included
- 24/7 claims support
Bionic
Key Features:
- Compare multiple insurers
- Save up to 40%
- Dedicated broker support
AXA UK
Key Features:
- Flexible payment options
- Multi-site coverage
- Risk management support
Insurance Do's and Don'ts
Do's
- Get quotes from 3+ providers to compare
- Ensure all staff have food hygiene certificates
- Review coverage annually as business grows
- Disclose all equipment (esp. deep fryers)
- Keep policy documents accessible
- Bundle policies for 10-20% discount
Don'ts
- Don't skip employers' liability if you have staff
- Don't undervalue equipment to save money
- Don't hide previous claims from insurers
- Don't assume cheapest quote is best value
- Don't forget to check exclusions carefully
- Don't let coverage lapse - even for a day
Insurance for Ghost Kitchens & Dark Kitchens
Ghost kitchens and delivery-only operations typically pay 10-20% less for insurance than traditional restaurants due to lower public interaction risk. However, you still need comprehensive coverage.
Cost Advantages:
- No dine-in = lower public liability risk
- Often lower property values to insure
- Fewer staff = lower employers' liability
- Shared facilities may include insurance
Important Considerations:
- Ensure product liability covers delivery radius
- Check if shared kitchen insurance covers you
- Delivery platform may require specific levels
- Multi-brand operations need adequate coverage
Typical ghost kitchen insurance: £220-£450/year for solo operators without staff. Add £400-£500 for employers' liability if hiring. Browse ghost kitchen spaces that include insurance in rent.
Ready to Start Your Food Business?
Now you understand insurance requirements, find the perfect kitchen space. Browse commercial kitchens across the UK with transparent pricing and insurance guidance.
Frequently Asked Questions
Is insurance legally required for food businesses?
Only employers' liability insurance is legally mandatory if you have staff (fines up to £2,500/day without it). Public and product liability aren't legally required but are essential - most councils, venues, and delivery platforms won't let you operate without £5M minimum cover.
How much does food business insurance cost?
Small takeaways and ghost kitchens typically pay £220-£450/year (£18-£38/month) for basic coverage. Medium restaurants with staff pay £850-£1,350/year. Costs vary based on turnover, staff numbers, location, and equipment value. The cheapest quotes start from £5.64/month for £2M public liability.
What's the difference between public and product liability?
Public liability covers injury or property damage to customers (e.g., someone slips in your restaurant). Product liability specifically covers illness or injury from your food products (e.g., food poisoning). Most insurers bundle these together for food businesses.
Do I need insurance for a home food business?
Yes. Standard home insurance won't cover business activities. You need specialist home food business insurance covering public liability, product liability, and business equipment. Costs start around £150-£300/year. If you have any employees (even family), you also need employers' liability.
Does ghost kitchen shared space insurance cover me?
Maybe partially, but you likely still need your own policy. Shared facility insurance typically covers the building and shared equipment, but not your specific operations, stock, or product liability. Always get written confirmation of what the facility's insurance covers before assuming you're protected. Learn more about ghost kitchen setups.
Related Resources
James Mitchell
Ghost Kitchen Operations Director & Industry Expert
With 15 years in the food service industry, James Mitchell has managed operations for multiple ghost kitchen networks across the UK. He specializes in delivery-only kitchen models, kitchen equipment procurement, and helping startups scale their food businesses efficiently.
Areas of Expertise
Credentials
- MBA in Hospitality Management
- Former Operations Director at major ghost kitchen operator
- Food Hygiene Level 4 Certified
- 15+ years food service industry
- Managed 20+ dark kitchen locations