Commercial cooking can increase the risk of fire, which is why many hospitality insurance policies include a commercial cooking warranty. Whether you operate a restaurant, bar or accommodation, understanding this requirement and what it means for your cover is essential.
These warranties are important because they form part of the terms and conditions of your insurance cover. They set out steps businesses must take to reduce the risk of fire and, if they aren't complied with, insurers may reduce or decline a claim.
While requirements vary between insurers, commercial cooking warranties typically focus on ensuring commercial kitchens are properly maintained, fire protection measures are in place, and equipment is operating safely.
As a business owner, some key areas to keep on top of include:
- Maintaining fire protection equipment, such as fire extinguishers and fire blankets.
- Regularly servicing and maintaining cooking equipment.
- Cleaning extraction systems, filters, flues and ducting.
- Keeping records of maintenance, servicing and cleaning completed.
- Ensuring staff understand fire safety procedures and the correct use of fire-fighting equipment.
- Following safe handling, storage and disposal practices for cooking oils and other combustible materials.
It's easy for these requirements to slip down the priority list when you're focused on customers, staffing and the day-to-day demands of running a business. However, something as simple as overdue maintenance, poor record-keeping or non-compliant fire protection equipment could become an issue if you need to make a claim following a fire.
Just as importantly, these measures help reduce the likelihood of a fire occurring in the first place, protecting your people, customers, premises and livelihood.
Taking the time to understand what your insurer requires, and ensuring those requirements are consistently met, can help avoid costly surprises when you need your insurance most.
If you're unsure about the commercial cooking warranty attached to your policy, email hospitality@ajg.co.nz to speak with a Gallagher broker. We can help you understand your obligations, identify any gaps, and ensure your insurance programme remains aligned with the risks facing your business.