Customers, food, physical products, hospitality and retail face unique risks every day
Slip and fall accidents, food poisoning claims, theft, and property damage. When you serve customers directly, you're exposed to claims that could close your business. Hospitality & Retail Insurance protects you from the risks other businesses don't face.
What could go wrong
When you serve customers directly, every interaction is a potential claim. Food poisoning, slip-and-fall accidents, theft, fire, hospitality and retail businesses face unique risks that could close you down overnight. One serious food poisoning outbreak or major customer injury can cost you hundreds of thousands in legal fees, compensation, and lost reputation.
The food poisoning claim
You run a small café. A customer claims to have contracted food poisoning from your lunch special. They're off work for a week and want compensation.
Their lawyer sends a letter demanding $15,000* for medical costs, lost wages, and suffering. Three more customers come forward with similar claims. Total exposure: $60,000* plus legal costs to defend yourself.
The customer slip and fall
A customer slips on a wet floor in your retail store (you'd just mopped but forgot to put up the sign). They broke their wrist and can't work for 8 weeks.
They're claiming $45,000* for medical bills, lost income, and ongoing physio. Your Public Liability is about to be tested.
What this actually covers
Hospitality & Retail Insurance
Hospitality & Retail Insurance is a specialised package for customer-facing businesses:
Public & Products Liability:
- Customer injuries in your premises
- Slip, trip, and fall accidents
- Food poisoning and allergic reactions
- Product defects causing harm
- Property damage to customer belongings
- Legal defence and compensation payments
Stock and contents:
- Stock and inventory (at cost price or retail price)
- Shop fixtures and fittings
- Displays, shelving, and furniture
- Kitchen equipment and appliances
- POS systems and technology
- Signage and fit-out
Business interruption:
- Lost income while closed due to an insured event
- Ongoing expenses (rent, wages, loan repayments)
- Extra costs to minimise disruption
- Temporary relocation if needed
- Accountants' fees to calculate loss
Specific extensions for hospitality:
- Food spoilage (fridge/freezer breakdown)
- Liquor liability (alcohol-related incidents)
- Outdoor dining area cover
- Theft by employees (fidelity cover)
- Glass breakage (windows, displays)
- Terrorism and malicious damage
Specific extensions for retail:
- Theft and shoplifting losses
- Customer goods in your care (repairs, alterations)
- Money and till cash
- Stock in transit (deliveries)
- Online sales and click-and-collect
- Trade shows and pop-up stores
When you need this
Pre-launch to first year
You need this from day one if you're:
- Opening a café, restaurant, bar, or food business
- Running a retail shop or store
- Operating a food truck or mobile kitchen
- Running markets stalls or pop-ups
- Doing click-and-collect or local deliveries
- Serving customers at physical premises
Growing and hiring
Your cover needs to increase when:
- You're opening additional locations
- You're increasing seating or retail space
- You're adding liquor licenses
- You're doing catering or events
- You're hiring more staff (Workers Comp required)
- Your stock value increases significantly
Established and optimising
Review your cover annually:
- Update stock values (cost of goods changes)
- Increase business interruption sums (revenue grows)
- Add new locations immediately
- Review liquor liability if you add or change licenses
- Check food spoilage limits match your cool room stock
- Update when you renovate or expand
Common questions
Do I really need $20M Public Liability just for a small café?
Yes. A single serious food poisoning outbreak affecting multiple customers, or a major slip-and-fall injury, can easily result in claims exceeding $ 1 million. Many commercial leases require a minimum $20 million coverage anyway.
What if a customer has an allergic reaction?
If you've properly disclosed allergens and followed food safety regulations, you're less likely to be found liable. But you still need to defend claims. Public Liability covers legal defence even if the claim is unreasonable.
Does this cover shoplifting?
Yes, theft by customers (shoplifting) is usually covered, but there are excess thresholds (you might only claim for losses over $500 or $1,000). Frequent small thefts aren't worth claiming due to excess and premium increases.
What about stock that spoils due to power failure?
Most policies include food spoilage cover (up to a limit, often $5k-$20k) for fridge or freezer breakdown. This doesn't cover normal expiry or wastage—only sudden mechanical failure.
If someone gets drunk at my bar and causes trouble, am I liable?
Potentially yes, under RSA (Responsible Service of Alcohol) laws. Liquor liability extension covers claims arising from serving alcohol—fights, injuries, property damage. Essential if you have a liquor license.
Can I claim for lost income if I choose to close for renovations?
No. Business interruption only covers forced closure due to insured events (fire, flood, storm damage). Voluntary closures for renovations, holidays, or slow periods aren't covered.