Parramatta Restaurant Insurance Case Study
Identifying Insurance Gaps for a Growing Parramatta Restaurant
Location: Parramatta, NSW
A growing restaurant in Parramatta, NSW approached Ideal Insurance Brokers for an insurance review after making several changes to the business.
Turnover had increased, new equipment had been purchased, renovations completed and outdoor dining expanded. However, the existing insurance had not kept pace.
What We Found
A growing restaurant in Parramatta, NSW approached Ideal Insurance Brokers for an insurance review after making several changes to the business.
Turnover had increased, new equipment had been purchased, renovations completed and outdoor dining expanded. However, the existing insurance had not kept pace.
The review identified several areas that needed attention:
Potential underinsurance following increases in building and replacement costs
Construction and replacement costs had increased significantly since the restaurant's existing sums insured were originally established.
The cost of replacing the restaurant's fit-out, kitchen fixtures and dining contents could therefore be substantially higher than the values previously declared on the policy.
The review highlighted the importance of regularly reassessing sums insured rather than relying on historical figures.
Outdoor footpath dining, creating additional liability considerations
The restaurant had expanded its outdoor dining area, meaning customers were spending more time outside the main premises.
This created additional considerations around the restaurant's public liability exposure, particularly where customers and members of the public interacted with the footpath and surrounding areas.
Outdoor seating should be accurately disclosed when arranging or reviewing restaurant insurance so that the liability exposure is properly considered.
Increased turnover that needed to be reflected in the insurance
The restaurant's turnover had grown following the expansion and increased patron traffic.
Turnover is relevant to several aspects of a restaurant's insurance program, including public liability exposure and the calculation of business interruption losses.
Keeping turnover figures accurate helps ensure insurance arrangements reflect the restaurant's current trading level.
New kitchen equipment that had increased the value of the business assets
The restaurant had invested in new commercial kitchen and refrigeration equipment.
Some of the new appliances were significantly more valuable than the equipment originally considered when the policy was arranged.
The review ensured the new equipment was properly reflected in contents values and that machinery breakdown cover was considered.
Renovations and fit-out changes that affected the premises and insurance requirements
Recent renovations had changed the restaurant's premises, joinery and interior fit-out.
Renovations can increase the value of improvements, fixtures and property associated with a restaurant.
The review confirmed that the existing sums insured remained appropriate and the structural and fit-out changes were disclosed to insurers.
How We Helped
Rather than simply renewing the existing policy, Ideal reviewed the restaurant's current operations, property, equipment, turnover and outdoor dining arrangements.
The insurance was updated to better reflect the business as it operates today, rather than relying on information from several years earlier.
The Takeaway
Restaurants can change quickly. New equipment, renovations, increased turnover, outdoor dining and rising replacement costs can all affect insurance requirements.
Regularly reviewing your insurance can help identify potential gaps as your business grows.
Running a restaurant in Parramatta or Western Sydney?
If you operate a restaurant in Parramatta, Harris Park, North Parramatta, Westmead or surrounding Western Sydney, Ideal Insurance Brokers can help review your insurance requirements.
Talk to Ideal Insurance Brokers about Restaurant Insurance NSW.
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Insurance Disclaimer: This page provides general information only. Insurance cover is subject to the relevant policy terms, conditions, limits and exclusions.