What insurance does a shop or café need?

Public liability for customers on the premises, employers' liability once you have staff, stock and contents cover, glass cover, and business interruption so you can keep paying costs if you cannot trade.

Does my landlord's insurance cover my shop?

The landlord usually insures the building, not your stock, fittings, or liability. Commercial leases commonly also require you to hold public liability at a stated limit as a condition of the tenancy.

Do I need business interruption cover?

If a fire or flood would stop you trading for weeks, this is the section that keeps rent, wages and other fixed costs paid. The indemnity period needs to be long enough to reopen realistically.

Is food-related illness covered?

Claims from customers who become ill generally fall under public and product liability, but food businesses have particular underwriting requirements, so hygiene records and procedures matter to the insurer.

BUSINESS GUIDE

Shop and café insurance

Premises change the shape of the risk. You have the public through the door, stock on the shelves, equipment you cannot trade without, and a lease that usually dictates part of your cover for you.

Last reviewed August 2026

Liability comes first

Public liability handles injury to customers and visitors and damage to their property. In retail and hospitality the claims are the ordinary ones: a slip on a wet floor, a scald, a falling display, a trip over a delivery.

Employers' liability is required by law once you employ anyone, and in a shop or café that usually happens from day one. The compulsory minimum level of cover is £5 million.

Stock, contents and equipment

Stock should be insured at the maximum value you hold at any point in the year, not the average. Seasonal peaks matter, because that is precisely when a loss hurts most.

Contents covers your fittings, counters, furniture and equipment. For food businesses, refrigeration and freezer contents deserve particular attention, along with deterioration of stock after a breakdown or power failure.

Peak stock value, not the annual average
Tenant's improvements and shopfitting you paid for
Catering equipment, coffee machines, ovens and refrigeration
Frozen and chilled stock, and deterioration cover
Tills, card terminals and computers
Cash on premises and in transit

Glass, signage and shopfront

Shopfronts are large panes of glass on a public street. Glass cover, often including boarding-up costs and replacement of signage and lettering, is a standard section for retail premises and one that gets used more than owners expect.

Business interruption

This is the section that decides whether a bad incident is survivable. It replaces lost gross profit and covers ongoing costs while you cannot trade after insured damage.

The key figure is the indemnity period. Rebuilding a kitchen, replacing bespoke fittings and waiting for equipment can take far longer than the shortest available option, so the period should match a realistic reopening timeline.

What the lease requires

Commercial leases frequently specify a minimum public liability limit, require you to insure tenant's improvements and plate glass, and require you to reinstate the premises at the end of the term. Those obligations should be reflected in the policy rather than discovered later.

Have the insurance clause of the lease to hand for the call, and the service charge insurance schedule if the landlord recharges the building premium.

What to have ready

With these details a specialist can usually put the whole package together in one call.

What you sell or serve, and whether you cook on site
Annual turnover and gross profit
Number of employees, including part-time and weekend staff
Peak stock value and total contents value
Whether you have a delivery or outside catering side
Security: alarm, shutters, CCTV, and whether anyone lives above
Claims in the last five years, and your renewal date

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Common questions

What insurance does a shop or café need?: Public liability for customers on the premises, employers' liability once you have staff, stock and contents cover, glass cover, and business interruption so you can keep paying costs if you cannot trade.
Does my landlord's insurance cover my shop?: The landlord usually insures the building, not your stock, fittings, or liability. Commercial leases commonly also require you to hold public liability at a stated limit as a condition of the tenancy.
Do I need business interruption cover?: If a fire or flood would stop you trading for weeks, this is the section that keeps rent, wages and other fixed costs paid. The indemnity period needs to be long enough to reopen realistically.
Is food-related illness covered?: Claims from customers who become ill generally fall under public and product liability, but food businesses have particular underwriting requirements, so hygiene records and procedures matter to the insurer.

Keep reading

General information only, written for UK readers. It is not insurance advice and does not take account of your circumstances. Cover Sorted collects your enquiry and passes it to an FCA-authorised insurance specialist. Cover Sorted does not provide quotations, comparisons or recommendations.