A slip on your floor and a bad batch of chicken are two very different claims.
Running a cafe means customers moving through a small space all day, food going out that has to be safe every single time, and furniture and fixtures that get used far harder than they would at home. One policy needs to answer for the floor, and a separate part of it needs to answer for what's on the plate.
Where a cafe actually gets exposed
Cafes carry two distinct kinds of claim that get lumped together under "public liability" in most owners' minds. One is about the physical space. The other is about what you serve.
The slip near the counter
A customer slips on a wet patch near the coffee machine during a busy morning rush and breaks their wrist. They're off work for weeks and want their medical costs and lost income covered.
The food poisoning claim
Several customers report feeling unwell after eating at your cafe on the same day. One ends up hospitalised, and it's traced back to improper storage temperature in your cool room.
The broken chair
A chair gives way under a customer, causing a fall and an injury. It turns out the chair had a known wobble that hadn't been repaired or replaced.
What this actually covers
Public liability for a cafe
Public liability protects you if:
- A customer or visitor is injured on your premises
- You damage a customer's property, like a laptop or personal item
- Someone sues over injury or property damage linked to your business
Food you serve is treated as a product, so illness or injury it causes falls under the related Products Liability cover rather than public liability itself. See our Public & Products Liability guide for how the two work together.
Who's going to ask you for it
Your lease and your food licence both depend on it
Cover for a cafe isn't just prudent risk management, it's close to a condition of trading:
- Landlords and shopping centres almost universally require a public liability certificate before handing over the keys.
- Council food business registration sits alongside insurance as a separate compliance requirement, not a substitute for it.
- Suppliers and wholesale food distributors may want confirmation of cover before setting up an account.
Common questions
Isn't food poisoning just a public liability claim?
Not quite. It's a product liability claim, which sits alongside public liability under the same policy in most cases, but it's a distinct category of cover you need to confirm is included.
What if a customer has an allergic reaction and we didn't know about their allergy?
This can still be a product liability claim, particularly if allergen information wasn't clearly displayed or your staff gave incorrect information about ingredients.
My landlord wants $20 million cover. Is that normal for a small cafe?
Increasingly, yes. Many commercial leases and shopping centre landlords now specify $20M as their standard minimum rather than the $10M that used to be typical.
Does this cover damage to my own kitchen equipment?
No, that's business property insurance. Public and product liability cover claims from customers and third parties, not damage to your own assets.
I only sell coffee and pastries, not full meals. Do I still need product liability?
Yes. Any food or beverage you serve carries a product liability exposure, whether it's a full meal or a single coffee.