Hotel & Restaurant Insurance in Kenya

A hotel or restaurant typically needs fire and burglary cover for the building, kitchen and contents; public liability with a food and drink extension; guests' property cover; money and fidelity cover; business interruption; and WIBA for staff, which is compulsory. Cold rooms can be covered for spoilage. Hotels and larger restaurants are often quoted individually rather than through a standard SME package.

Usually only if you arrange it. Food poisoning claims fall under products or 'food and drink' liability, which is an extension to public liability or a separate products liability policy. A basic public liability policy may not cover illness caused by food you serve or sell. Check the wording names food and drink, and that the limit suits the number of guests you serve.

Public liability insurance pays compensation and legal costs if your business is legally liable for injury to, or the death of, a customer, visitor or other member of the public, or for damage to their property. Claims usually arise from slips, falls, falling objects or work done at a client's site. It does not cover your own employees, which is WIBA and employers' liability.

Business interruption (also called loss of profits or consequential loss) insurance replaces the gross profit you lose, and pays the extra costs of keeping the business going, while you recover from damage covered by your property policy. It can also pay continuing wages, rent and auditors' fees for preparing the claim. It is typically priced at about 0.25% of the gross profit insured a year.

No. Business interruption only pays when the loss of income follows physical damage covered by your property (fire) policy, so insurers sell the two together and the perils usually mirror each other. If the fire claim is not admissible, for example because riot was not covered, the business interruption claim fails too. Lost income without physical damage is not covered.

Money insurance covers cash and cheques lost through theft, robbery or hold-up while in transit to or from the bank, on your premises during business hours, in a locked safe or strongroom after hours, and with authorised staff. Most wordings also pay for damage to the safe. It is priced on your estimated annual cash carried, about 0.1% of it, with a minimum of around KES 3,000.

Only if you bought it. Standard fire and burglary policies usually exclude riot, strike, political violence and terrorism unless the extension or a separate political violence and terrorism (PVT) policy is in place, and a 2024 Kenyan case refused a riot claim for exactly this reason. Some SME packages include riot and strike under fire but carry a high excess on the PVT section.

WIBA is priced as a percentage of your annual payroll. Typical rates are about 0.5%–0.7% for office staff, 0.8%–1.2% for retail and hospitality, and 1.5%–2% or more for construction, manufacturing, drivers and security, with a minimum premium of about KES 10,000–15,000 a year. Levies of 0.45% plus KES 40 stamp duty are added.