What Is Takeaway Insurance?

Takeaway Insurance is a type of commercial insurance arranged for businesses preparing and selling food for customers to collect or have delivered.

Depending on the insurer and policy selected, cover may include business contents, stock, Public and Products Liability, Employers’ Liability, business interruption and other specialist protections.

Takeaway businesses can present particular underwriting challenges because of cooking processes, fire risks, late-night trading, food safety exposures and delivery operations.

It is important that your insurance accurately reflects how your takeaway operates, including the cooking equipment used, opening hours, delivery arrangements and any seating or dine-in facilities.

What Does Takeaway Insurance Cover?

A Takeaway Insurance policy may include a combination of the following covers, depending on your requirements and insurer acceptance.

Not every cover is automatically included. All protection is subject to the policy wording, sums insured, limits, excesses, exclusions and conditions.

Takeaway Insurance for Different Food Businesses

Different takeaway operations present different risks, particularly where cooking methods and equipment vary.

Some cooking methods or premises arrangements may require specialist underwriting.

Fire Insurance for Takeaways and Commercial Kitchens

Fire is one of the most significant risks facing takeaway businesses.

Deep-fat fryers, cooking oils, high-temperature equipment, extraction systems and combustible deposits can increase the potential for serious losses.

A fire may damage the premises, destroy equipment and stock, and prevent the takeaway from trading.

When arranging Takeaway Insurance, insurers may consider:

• Types of cooking equipment and fuel used.
• Deep-fat fryers and cooking oil arrangements.
• Kitchen extraction and ducting systems.
• Cleaning and maintenance records.
• Fire detection and suppression equipment.
• Fire risk assessments and staff training.
• Building construction and neighbouring occupancies.
• Previous fire incidents and claims.

Policies may contain specific warranties or conditions relating to extraction cleaning, fire safety equipment and cooking processes.

Failure to comply with applicable policy conditions can affect insurance protection.

Deep-Fat Fryer and Extraction System Insurance

Takeaways using deep-fat fryers and commercial extraction systems should pay particular attention to their insurance terms.

Insurers may require evidence that equipment is appropriately installed, maintained and cleaned.

Requirements can vary depending on the cooking methods and the insurer.

Areas that may need consideration include:

• Professional cleaning of extraction ducting.
• Regular cleaning of filters and accessible components.
• Suitable fire extinguishing equipment.
• Appropriate cooking oil management.
• Maintenance of fryers and other cooking appliances.
• Compliance with applicable fire safety requirements.
• Retention of relevant cleaning and maintenance records.

Never assume that a standard shop insurance policy automatically accepts all commercial cooking activities.

Public Liability Insurance for Takeaway Shops

Takeaway businesses regularly interact with customers, delivery drivers, suppliers and other visitors.

Public Liability Insurance may respond to qualifying claims involving accidental injury or third-party property damage arising from insured business activities.

Examples include:

• A customer slipping on a wet floor.
• A visitor tripping over an obstruction.
• Accidental damage to a customer’s property.
• Injury arising from certain hazards at the premises.

Public Liability Insurance is not universally compulsory by law, but landlords and other commercial parties may require it.

Food Poisoning and Products Liability Insurance

Takeaways have a responsibility to prepare, handle and supply food safely.

Allegations involving food poisoning, contamination or undeclared allergens can lead to serious claims.

Products Liability Insurance may provide protection against certain legal liabilities where food or drink supplied by your business allegedly causes injury or illness.

However, policies may contain exclusions or restrictions, and cover for product recall, stock disposal or reputational damage should not be assumed.

Takeaway owners should maintain appropriate food safety procedures, allergen controls, staff training and records.

Further guidance is available from the Food Standards Agency.

Employers’ Liability Insurance for Takeaways

Most UK businesses employing staff are legally required to hold Employers’ Liability Insurance, subject to exemptions.

The minimum required cover is generally £5 million, although many commercial policies provide £10 million.

Takeaway employees may face risks involving:

• Burns from cooking equipment and hot liquids.
• Slips and falls on kitchen floors.
• Cuts from knives and food preparation equipment.
• Manual handling injuries.
• Other work-related accidents or illnesses.

Employers’ Liability Insurance may respond to qualifying claims where an employee alleges injury or illness arising from their work.

Delivery workers and subcontracting arrangements should be accurately disclosed so the relevant insurance responsibilities can be assessed.

Takeaway Delivery Driver Insurance

Many takeaways provide home delivery services using employees, self-employed drivers or third-party delivery platforms.

Delivery arrangements can create additional motor and liability exposures.

Important considerations include:

• Whether the business owns or operates delivery vehicles.
• Whether employees use their own cars or motorcycles.
• Whether drivers have appropriate insurance for food delivery or hire-and-reward use.
• Whether delivery workers are employees or independent contractors.
• Whether third-party delivery platforms are used.
• Contractual responsibilities relating to deliveries.

Standard private motor insurance or ordinary commuting cover may not be suitable for paid food delivery activities.

Takeaway property and liability policies do not automatically provide the motor insurance required for delivery vehicles.

For relevant business vehicles, explore our Commercial Vehicle Insurance information.

Business Interruption Insurance for Takeaways

If a serious fire, flood or other insured incident forces your takeaway to close, the financial consequences may extend beyond repairing the premises.

You could lose income while continuing to face rent, wages and other ongoing expenses.

Business Interruption Insurance may provide cover for certain financial losses following an insured event.

Important considerations include:

• The events that trigger cover.
• The amount of gross profit or revenue insured.
• The maximum indemnity period.
• Continuing expenses during closure.
• The time required to repair or replace specialist kitchen equipment.
• Any relevant policy extensions and restrictions.

Business interruption protection is not automatically included in every takeaway policy.

Learn more about Business Interruption Insurance.

Refrigeration Breakdown and Deterioration of Stock

Takeaway businesses often hold valuable perishable stock in refrigerators and freezers.

Equipment failure or certain other insured incidents can result in food spoilage and replacement costs.

Depending on the policy, deterioration of stock cover may be available for specified losses involving refrigeration failure or temperature changes.

However, insurers may apply restrictions relating to:

• The age and maintenance of refrigeration equipment.
• Minimum loss amounts or excesses.
• Temperature monitoring arrangements.
• Power supply interruptions.
• Gradual deterioration or wear and tear.
• Maximum stock values.

Equipment breakdown and deterioration of stock are distinct covers and should be reviewed separately.

Takeaway Insurance for Rented Premises

Many takeaway businesses operate from leased commercial premises.

Insurance responsibilities may be divided between the landlord and tenant under the lease.

For example, a landlord may insure the building while the takeaway operator is responsible for business contents, stock, fixtures, improvements and liability insurance.

It is important to check:

• Who is responsible for buildings insurance.
• Who owns and insures kitchen equipment.
• Responsibility for shopfronts, signage and glass.
• Insurance requirements contained in the lease.
• Whether tenant improvements and alterations need to be insured.
• Any contractual requirements relating to fire prevention and maintenance.

Your insurance should reflect the responsibilities you have under your lease and the property you own or are required to insure.

Important Takeaway Insurance Exclusions and Conditions

Takeaway Insurance policies may contain restrictions that significantly affect the protection available.

Areas requiring particular attention include:

• Deep-fat fryer and commercial cooking requirements.
• Extraction system cleaning and maintenance conditions.
• Fire prevention and security requirements.
• Undisclosed cooking methods or changes in activities.
• Food contamination and product recall exclusions.
• Delivery vehicle and motor liability exclusions.
• Equipment wear and tear or gradual deterioration.
• Restrictions relating to unoccupied premises.
• Stock limits and refrigeration conditions.
• Business interruption triggers and indemnity periods.
• Applicable policy excesses and sums insured.

We can help you understand the terms offered and identify important areas to review before arranging cover.

How Much Does Takeaway Insurance Cost?

The cost of Takeaway Insurance depends on the business, its premises and the risks involved.

It’s important to compare the scope of cover as well as the premium, particularly where insurers impose different cooking or fire safety conditions.

What Information Is Needed for a Takeaway Insurance Quote?

To help us approach suitable insurers, we may ask for:

• Your business name and trading history.
• The type of takeaway and food prepared.
• The premises address and construction details.
• Annual turnover and employee numbers.
• Opening hours and any late-night trading.
• Details of deep-fat fryers, ovens, grills and other cooking equipment.
• Extraction system cleaning and maintenance arrangements.
• Fire safety and security measures.
• Buildings, contents and stock values.
• Whether customers can eat on the premises.
• Whether you provide delivery services and how these operate.
• Required liability limits and business interruption cover.
• Previous insurance claims.

Providing accurate information about cooking methods and fire safety arrangements is particularly important.

Frequently Asked Questions About Takeaway Insurance

What insurance does a takeaway need?

Takeaways commonly consider Public and Products Liability, Employers’ Liability where required, contents, stock and business interruption insurance. Additional covers depend on the premises, equipment and delivery arrangements.

Is Takeaway Insurance compulsory?

There is no single takeaway insurance policy required by law for every business. However, Employers’ Liability Insurance is compulsory for many businesses with employees, and appropriate motor insurance is required for vehicles used on public roads.

Does Takeaway Insurance cover food poisoning?

Products Liability Insurance may cover certain legal liability claims involving illness caused by food supplied by the business, subject to policy terms and exclusions.

Does Takeaway Insurance cover deep-fat fryers?

Cover may be available for takeaways using deep-fat fryers, but insurers may impose specific conditions relating to fire safety, extraction cleaning and equipment maintenance.

Does Takeaway Insurance cover delivery drivers?

Not automatically. Delivery vehicles require appropriate motor insurance for their use, and employment and liability arrangements should also be considered.

Can I insure a takeaway in rented premises?

Yes. Insurance may be arranged for tenant-owned contents, stock, equipment, liability and other risks. Buildings insurance responsibilities should be checked against the lease.

Does Takeaway Insurance cover fridge or freezer breakdown?

Equipment breakdown and deterioration of stock cover may be available, depending on the insurer and policy selected.

Can I get insurance for a takeaway with previous claims?

Some insurers may consider takeaways with previous claims, depending on the nature, frequency and circumstances of those losses.

Why Choose Edison Ives for Takeaway Insurance?

Takeaway businesses need insurance that reflects their cooking activities, premises, employees and trading arrangements.

At Edison Ives, we take time to understand your business and help you explore suitable insurance markets.

• Commercial insurance advice tailored to your takeaway.
• Consideration of cooking equipment and fire exposures.
• Review of Public and Products Liability requirements.
• Help understanding extraction cleaning and policy conditions.
• Consideration of stock, equipment and business interruption risks.
• Personal support with your commercial insurance arrangements.

Part of David Roberts & Partners

Edison Ives is proud to be part of David Roberts & Partners Ltd, an independent insurance broker group.

Our group relationship supports access to wider insurance expertise and markets while allowing us to maintain a personal approach to our clients.

Contact Edison Ives

Call 0113 390 4646

Email info@edinsure.co.uk