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Why a Food Delivery Theft Claim Matters for Restaurant Insurance

A recent AFCA decision reinforces the importance of checking policy schedules before losses occur

Why a Food Delivery Theft Claim Matters for Restaurant Insurance?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A recent insurance dispute involving a food delivery business offers a practical warning for Australian restaurant and café operators: if a location is not listed on the policy schedule, the cover may not respond when something goes wrong.

The case, reported by Insurance News on 9 July 2026, centred on a business that suffered theft and damage after a break-in at a leased site used to store operational equipment, including a large number of e-bikes. The insurer declined the claim because the affected premises had not been added to the insurance schedule. The business later pursued its broker, arguing that the broker should have arranged suitable cover and identified the missing location.

The Australian Financial Complaints Authority did not accept that argument. Its decision turned on the records: there was evidence that the broker had made other address changes when instructed, but no evidence that the business had asked for this particular site to be added before the theft. AFCA also noted that the broker had sent policy documents for review, and that the business did not raise the missing address at the time.

For restaurants, cafés, takeaway stores and venues with delivery operations, the lesson is clear. Expansion often happens quickly: a spare storeroom is leased, delivery bikes are moved offsite, catering equipment is kept in a shed, or stock is temporarily stored at another premises. Each of those changes can create a gap in restaurant insurance coverage if the insurer has not been told and the schedule has not been updated.

Owners should pay close attention to three areas after any operational change:

  • Whether every premises used for stock, contents, equipment or vehicles is specifically listed on the policy schedule.
  • Whether equipment stored outdoors, in sheds or in shared areas is covered, restricted or excluded.
  • Whether delivery assets such as e-bikes, scooters, trailers or vans are insured under the right section of the policy.

The decision also shows that relying on memory or informal conversations is risky. When a venue changes premises, adds a storage site or relocates equipment, instructions to a broker should be clear, dated and confirmed in writing. The updated documents should then be checked carefully, especially the insured locations, sums insured, exclusions and endorsements.

This is not just an administrative exercise. For hospitality businesses already under pressure from wages, rent, food costs and cash flow, an uninsured theft or property loss can be financially severe. A short policy review after each business change may be the difference between a supported recovery and a denied claim.

Published:Tuesday, 14th Jul 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Subrogation:
The process by which an insurance company seeks to recover the amount paid to the policyholder from a third party responsible for the loss.