How to Reduce Insurance Claims in Your Café or Restaurant

Whether you run a bar, café, or restaurant, you know how demanding the day-to-day can be -managing staff, serving customers, maintaining standards, and keeping everything running smoothly. But alongside the operational pressures, there are risks that need careful attention. From customer accidents to kitchen fires, even a small incident can lead to a costly insurance claim. With the right approach, you can reduce your exposure and protect your business.

As insurance brokers, with over 50 years’ experience, we work closely with hospitality businesses across Ireland to help them understand their risks and ensure they have the right cover in place. We’ve seen how proactive risk management can reduce claims, protect your reputation and keep your business resilient.

Here are some tips to protecting your business.

1. Train Your Team to Spot and Prevent Hazards

Your staff are your first line of defence. Regular training in food hygiene, manual handling and customer service helps prevent incidents before they happen. Make sure new staff are trained from day one and refresh training annually.

Tip: Keep a record of all training sessions - it’s useful if a claim arises.

2. Keep Your Premises Safe and Well-Maintained

Slips, trips, and falls are among the most common public liability claims in hospitality, but they are often preventable. In several cases across Ireland, businesses were found liable where wet floors weren’t cleaned promptly, or where uneven surfaces and poor lighting contributed to customer injuries. These types of incidents not only result in compensation payouts but can also damage your reputation and disrupt operations.

To reduce the risk:

• Keep floors dry and clean
• Ensure walkways are clear and well-lit
• Secure furniture and fittings
• Carry out daily safety checks and log any issues

Tip: Prevention is always cheaper than a payout - and it shows your commitment to customer safety.

3. Kitchen Safety: Where Risk Meets Regulation

The kitchen is the heart of your business -and one of the highest-risk areas. Fires, burns, equipment faults, and hygiene breaches can all lead to serious incidents and insurance claims.

Here’s how to stay ahead in keeping your kitchen safe:

• Fire Safety: Install fire blankets and extinguishers and ensure they’re serviced annually. Deep fat fryers should have thermal cut-out devices, and extraction systems must be cleaned regularly to prevent grease build-up.
• Equipment Maintenance: All electrical appliances should be PAT tested annually. Gas appliances must be installed and serviced by certified professionals. Keep emergency shut-off controls accessible and clearly marked. Make sure the building has an up to date ECTI cert, which has to be done every five years.
• Ventilation and Hygiene: Clean ducting and filters regularly to reduce fire risk and maintain air quality. This also helps meet insurance requirements for commercial kitchens. Ducting has to be cleaned by an independent contractor every year and you keep a record of this.
• Grease Traps: While often overlooked, grease traps play a vital role in kitchen safety and compliance. Poorly maintained traps can lead to blockages, foul odours, pest infestations - and if they’re not working correctly or haven’t been cleaned regularly, businesses can be fined or may even find they are not covered by their insurance. Keeping a cleaning log is not only good practice but is also smart risk management.
• Food Safety: Follow the Food Safety Authority of Ireland (FSAI) guidelines and HACCP principles to ensure proper food handling, storage, and hygiene. Cross-contamination and poor temperature control are common causes of food-related claims. The FSAI provides excellent resources for hospitality businesses, including guidance on implementing the HACCP food safety management system.

Other useful resources include:

• Gov.ie – Food Safety & Public Health
• Citizens Information – Food Safety & Environmental Health

Tip: Document all servicing, inspections, and cleaning schedules. This helps defend against claims and shows you’ve taken reasonable precautions.

4. Alcohol-Related Incidents: Be Proactive

Bars and restaurants serving alcohol face additional risks, including aggressive behaviour and intoxicated customers. Train staff in responsible service and conflict de-escalation. Consider hiring security for busy nights.

Tip: Document any incidents involving alcohol-even if no claim is made. It shows you took reasonable steps to manage the situation.

5. Review Your Insurance Policy Regularly

Recent legal outcomes in Ireland have shown how critical it is for hospitality businesses to understand exactly what their insurance policies cover - especially when it comes to business interruption. In some cases, businesses believed they were covered for certain events, only to discover exclusions or limitations when they needed to make a claim.

Your business is constantly evolving - whether it’s a new outdoor seating area, extended opening hours, or upgraded kitchen equipment. These changes can affect your risk profile and may not be automatically covered under your existing policy.

Here’s what to keep in mind:

• Work with a broker who understands your sector and can explain what is and isn’t covered in plain terms
• Notify your broker of any operational changes, renovations, or new services
• Review your policy annually, especially before peak seasons
• Check your sums insured for buildings, contents, and stock—underinsurance can lead to reduced payouts
• Understand your exclusions - some policies may not cover certain events unless specifically added

Tip: Keep a record of communications with your broker and any updates to your policy. This helps avoid disputes and ensures smoother claims handling when it matters most.

6. Document Everything

If an incident occurs, good documentation can make all the difference. Keep:

• CCTV footage
• Incident logs
• Cleaning schedules
• Staff training records
• Equipment servicing reports

This helps defend against exaggerated or fraudulent claims and shows you’ve taken reasonable precautions.

Conclusion

Risk is part of the hospitality business - but with the right steps, it doesn’t have to be a liability. By investing in safety, training, and proactive planning, you can reduce claims and protect your people, your premises, and your profits.

At Arachas, we’re here to help you build a safer, stronger business with tailored insurance solutions and expert advice. Talk to us today about how we can support your hospitality venture or call us on 01 5920896 for more information.

Arachas Corporate Brokers Limited t/a Arachas is regulated by the Central Bank of Ireland. Company registration number: 379157.