In the UK, business insurance companies have, over the years, developed many different ways of categorising different types of businesses. As far as leisure insurance is concerned, they will usually split this at a high level between pubs, restaurants, take-aways and night clubs.

Where licensed premises such as pubs and night clubs provide different types of entertainment, this can cause insurers to either increase their premium or terms, or potentially withdraw cover. As you can understand, a pub that does not provide entertainment will have less chance of injuries to patrons (and potential public liability insurance claims) than a pub that has discos, a DJ, a dance floor and is open until 3am in the morning.

With all types of business having to adapt and expand the range of products and services they sell (due to the tough financial conditions we now live in), it is more and more likely that restaurants will be doing more than simply offering food on the premises and a takeaway service.

A lot of restaurants may consider offering evening entertainment, party nights, or even having a late night bar. Whilst all of these activities are undoubtedly related to the business (of being a restaurant) they can, and usually do, mean an increased liability and property damage claim potential for the premises.

Some policies just have a very simple, high level, business description, such as pub, or bar. You really should ensure that your business description on your policy specifies all of the activities you undertake. Whilst we are not saying that an insurer would automatically turn down a claim, this could all mean a delay in sorting out settlement.

Some insurers could potentially turn around and say that they thought they were insuring a restaurant, not a part night-club and repudiate any claims made. Just to be safe, give your broker a call and tell them what you do, at least you are then safe in the knowledge that the restaurant insurance policy you have purchased, to cover claims, will protect you when required.

With every type of business insurance, you should always ensure that all of your business activities are adequately covered by your policy. This may seem fairly obvious, but certain insurers can use the small print in the policy wording to deny liability for a claim because they were not aware that you were doing a certain type of work.

Insurers do of course allow there to be a certain amount of leeway, for example they accept that in a public house there will possible be live music, the odd band or maybe other entertainment. What they will need to know is if you have, for example, a disco every Friday night, where people pay to get in and you are open til 3 am on Saturday.

As far as restaurant insurance is concerned, they accept that you may have private functions and possible undertake him deliveries. But, if you undertake outside catering, this is something that insurers should be advised of, and your policy documents should note this.

Outside catering presents increased risks for the business, on both the liabilities and the damage to property front. Depending on the amount of time that you undertake for this activity they may wish to apply certain terms and conditions or alternatively charge a higher premium.

If you hire in waiting and serving staff, this increases the employers liability insurance risk. You have staff that you may not be used to working with, may not be fully trained and they are working in a strange and possible busy environment. As far as the property risks are concerned, you have the increased chance of damage being caused for your equipment, maybe portable heating equipment and furniture.

Most insurers are reasonable about this and will simply endorse the policy to note this without charge or amending the policy. Others however (usually the ones that quote the cheapest premiums at the outset) will try an recoup some of their money by charging you for the changes to the policy. If the charges seem unreasonable, then challenge them and see whether they can be removed or reduced.

In the UK, most business insurance companies will offer a whole range of products. Essentially, they follow the same basic format, with standard sections, or types, of cover included.

The way that the insurers differentiate between their products is, in the vast majority of cases, along different trades. So, you can get specialist policies for everything from plumbers, to shop keepers, to wholesalers to underwater drilling companies. Think of any trade, and an insurers somewhere will have though of, and created, a niche product suited for the individual risks associated with that business.

As far as restaurant insurance is concerned, there are risks associated with the type of work they do, which may not apply to other types of business. Restaurants, as well as hotels and pubs, need and rely on customers coming in to eat and drink and stay at their premises.

Therefore, one of the risks they face is if a customer is injured. This can be a slip on some spilled food or through consuming a product which makes them sick. Thankfully, these events are few and far between, but you need to make sure that that you have adequate cover in place to protect you from the dreaded solicitors letter following such an event.

The cover that needs to be in place is two-fold, products and public liability insurance. But what happens if a customers clothing is damaged. They have not been injured, so it is unlikely to be a large claim and they will not go to see a solicitor. Public liability will still cover this type of eventuality, but some insurers do have a separate section of cover which may limit this to, for example, £1,000 each and every claim.

If one of you waiters or waitresses spills soup on someones suit or clothing, you can almost guarantee that it is going to be the most expensive suit that they have ever bought. And of course, it is unlikely to be a cleanable item of clothing.

If you do have this cover and a customer complains, you really do need to notify your insurers or broker immediately. The quicker they are involved, the quicker they can get the claim resolved. Also, they may correspond with the third party to prevent this taking up too much of your valuable business time.