The food and beverage industry is one of the most dynamic sectors of the Portuguese economy — and also one of the most exposed to risk. A bar or restaurant operates daily with high-temperature equipment, food handling, heavy foot traffic, demanding electrical installations and, frequently, extended opening hours that increase exposure to unforeseen events. Managing these risks without an adequate insurance programme is, in practice, gambling with the survival of the business.
In this article, we analyse the most frequent claims in the food and beverage sector in Portugal, the essential coverages for each type of risk and, above all, what to do when a claim occurs — because the way an incident is managed is just as important as the policy that covers it.
Mandatory insurance for bars and restaurants
Before discussing claims, it is essential to understand the legal framework. In Portugal, food and beverage establishments have specific obligations regarding insurance:
- Workers' compensation insurance: mandatory for any business with employees. It covers accidents and occupational diseases occurring at the workplace or during the commute between home and work
- Public liability insurance: mandatory for establishments open to the public. It covers damage caused to customers and third parties within the scope of the establishment's activity
- Building multi-risk insurance: mandatory when the property is subject to horizontal property regime (condominium). It covers the building against fire and other risks
Beyond these mandatory policies, there are highly recommended supplementary coverages that many owners are unaware of or underestimate.
The most common claims in the food and beverage industry
Based on accumulated experience in managing insurance for the food and beverage sector, we have identified the claims that occur most frequently and with the greatest impact.
1. Fire and explosion
The most feared risk and, unfortunately, one of the most real. Professional kitchens operate with gas, industrial fryers, high-temperature ovens and extraction systems that, if poorly maintained, become ignition sources. A kitchen fire can destroy an entire establishment in minutes.
The most common scenarios include: grease accumulation in extraction systems, undetected gas leaks, short circuits in obsolete equipment and improper use of deep fryers. Prevention is fundamental, but insurance is the safety net that prevents a fire from meaning the end of the business.
2. Water damage
Pipe bursts, flooding from heavy rainfall, breakdowns in dishwashers or refrigeration systems — water damage is extremely common in the food and beverage industry. Water damages not only the building structure, but also equipment, furniture, food stock and frequently forces the temporary closure of the establishment.
3. Refrigeration equipment failure
The cold chain is vital in the food and beverage industry. A breakdown in the refrigeration system can mean the total loss of stored food stock — meats, fish, dairy products, frozen goods. The loss can reach thousands of euros in just a few hours, especially in larger establishments or those with premium products.
4. Liability for food poisoning
Despite all HACCP regulations, cases of food poisoning continue to occur. When a customer falls ill after a meal at your establishment, liability can be attributed to the restaurant. The costs include not only compensation to affected customers, but also legal defence costs and, potentially, temporary closure ordered by health authorities.
5. Customer accidents
Slips on wet floors, falls on stairs, burns from hot plates, cuts from broken glass, unreported allergic reactions — accidents involving customers are more frequent than one might imagine. Each incident can generate a liability claim with significant costs.
6. Theft and vandalism
Bars and restaurants are frequent targets of theft, especially during closing hours. Audiovisual equipment, coffee machines, cash registers, premium wine collections — the exposed assets are considerable. Vandalism, particularly in nightlife areas, is another recurring risk that can cause substantial material damage.
7. Loss of revenue due to temporary closure
This is the invisible claim that few anticipate. When a fire, flood or other event forces the closure of the establishment for weeks or months for repairs, the business continues to have fixed costs — rent, salaries, loan repayments — but no revenue. Without business interruption insurance, many businesses do not survive this period.
In the food and beverage industry, the most dangerous claim is not the one that causes the most visible damage. It is the one that forces the establishment to close its doors with no way to pay the bills during the shutdown.
Essential coverages for a complete programme
A robust insurance programme for a bar or restaurant should include the following coverages:
- Multi-risk establishment insurance: covers the building, contents (furniture, decoration, kitchen equipment), food and beverage stock against fire, water damage, storms, theft and vandalism
- Public liability insurance: protects against claims from customers and third parties for bodily injury or property damage caused by the establishment's activity
- Product liability insurance: specific coverage for claims related to food poisoning or allergies caused by products served
- Machinery breakdown insurance: covers the repair or replacement of equipment suffering mechanical or electrical failure, including refrigeration systems
- Goods deterioration insurance: covers the loss of food stock due to refrigeration equipment failure
- Business interruption insurance: compensates for lost revenue during the period of closure following an insured event, ensuring the business can continue to meet its fixed obligations
- Workers' compensation insurance: mandatory coverage that protects employees in the event of an accident or occupational disease
How to manage a claim: fundamental steps
When a claim occurs, the way it is managed determines the speed and the value of the settlement. Following a structured process is essential.
1. Ensure immediate safety
The absolute priority is to protect people. Evacuate the establishment if necessary, call the emergency services and administer first aid. No concern about insurance or material damage justifies putting anyone at risk.
2. Document thoroughly
Once the situation is under control, document everything: photographs and videos of the damage, list of affected items, invoices and proof of value for damaged goods, reports from authorities (fire brigade, police, ASAE). The more detailed the documentation, the faster and fairer the claim assessment will be.
3. Report the claim to the insurer immediately
Most policies require the claim to be reported within 8 working days. Reporting immediately, preferably within the first 24 to 48 hours, significantly accelerates the process. The report should include a clear description of what happened, when, the circumstances and an estimate of the damage.
4. Do not repair without authorisation
With the exception of urgent measures to prevent further damage (for example, stopping a water leak), do not begin repairs until the insurer sends a loss adjuster to assess the damage. Unauthorised repairs can compromise your settlement.
5. Follow up actively
The loss adjustment, settlement negotiation and payment are stages that require active follow-up. Having a specialised insurance broker managing this process makes a substantial difference, both in terms of speed and the final settlement value.
A well-documented and well-managed claim can be resolved in weeks. A poorly reported claim can drag on for months and result in a settlement significantly lower than the actual loss.
Common mistakes that compromise coverage
In our experience, there are recurring mistakes that lead to claim refusals or significant reductions in settlements:
- Outdated insured values: the restaurant's contents have been renovated, but the policy still reflects values from five years ago. In the event of a claim, the insurer applies the proportional rule and the settlement is reduced
- Missing coverages: not having business interruption cover, goods deterioration cover or product liability cover are gaps that are only discovered when it is too late
- Non-compliance with safety obligations: expired fire extinguishers, extraction systems without maintenance, absence of an emergency plan. These failures can be invoked by the insurer to reduce or refuse the settlement
- Late reporting: exceeding the legal deadline for reporting a claim can result in the loss of the right to a settlement
- Insufficient documentation: not having photographs of the damage, not keeping invoices for equipment or not maintaining an updated inventory makes it difficult to prove the loss
The role of a specialised broker
The complexity of risks in the food and beverage industry requires a broker with in-depth knowledge of the sector. At Adler & Rochefort, we carry out a detailed analysis of each establishment: we identify the specific risks, verify whether existing coverages are adequate, negotiate terms with multiple insurers and, when a claim occurs, manage the entire process on behalf of the client.
A specialised broker is not a cost — it is an investment that pays for itself at the first well-negotiated renewal or the first well-managed claim. The difference between having and not having professional advice can be the difference between recovering the full loss or absorbing a loss that compromises the viability of the business.