Insurance for Toronto Franchise Restaurants
How is your Toronto franchise restaurant protected with business insurance? Is your franchise restaurant protected against customer injuries, equipment breakdown, and cyberattacks with enough insurance to prevent you from being in financial difficulty?
Commercial insurance for Toronto franchise restaurant owners is designed to protect you against lawsuits and unexpected events like fire, property damage, and equipment failures.
Western Financial Group, a 100% Canadian company, can help you navigate business, car, and home insurance during this period of economic uncertainty.
Wherever your small business is located in Toronto, the Greater Toronto Area (GTA), or elsewhere in Ontario, a Western Financial Group business insurance broker will get you commercial coverage that uniquely protects what you do.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We’ll work with our insurance partners to find the best business coverage rates for your Toronto franchise restaurant business.
We make the process easy by getting insurance quotes for you to choose from and giving you policy coverage options that suit your Toronto business’s specific needs.
Why you need customized insurance for Toronto franchise restaurants
You need to protect your Toronto franchise restaurant from the potential risks associated with its daily operations. Without business insurance, you would have to cover the costs of any unexpected loss on your own.
What is a franchise restaurant?
A franchise restaurant is a restaurant that an independent investor (known as the franchisee) buys and then has the right to use the restaurant’s existing brand, its name, business model, recipes, and systems of the parent company (the franchisor).
In exchange for an initial fee and ongoing royalty payments, the franchisee gets access to a proven operational system and marketing support instead of starting a restaurant business from scratch.
What types of Toronto franchise restaurants need insurance?
- Burger chain restaurants
- Sub chain restaurants
- Pizza chains
- Coffee and bakery chains
- Chicken chain restaurants
- Ice cream and frozen treat chains
- Taco chains
- Casual dining restaurant chains
- Specialty food restaurant chains
- Fast food chains
Fast food franchises are common, making up a large portion of the overall restaurant franchising sector.
Top tip: Liability insurance is the cornerstone of your Toronto franchise restaurant insurance.
What liability insurance do Toronto franchise restaurants need?
Commercial general liability (CGL) insurance
CGL insurance protects your Toronto restaurant franchise if a third party (customer/supplier) suffers bodily injury or property damage at your place of business. For example, if a customer slips on a wet floor, gets injured, and sues you, this insurance helps cover legal fees. You will likely need between $2 million and $5 million in coverage but your Western Financial Group business insurance expert will help you determine the right amount of CGL coverage.
Typical coverage:
- Property damage
- Bodily injury
- Medical costs
- Legal defense costs
Liquor liability insurance
If your Toronto restaurant franchise serves liquor, liquor liability coverage can protect your establishment against negligence when serving alcohol to customers and it includes overserving a customer. Once the individual is past the point of intoxication, and if they cause harm to the public or themselves, both the server and you as the franchise owner may be held liable based on level of care given to the intoxicated individual and the harm or damage they cause inside and outside your franchise restaurant.
Cyber liability insurance
Cyber liability insurance is recommended for Toronto franchise restaurant owners if you have digital payments and store digital financial information.
Cyber liability insurance will help protect your Toronto franchise business financially in case of a cyberattack. Depending on the size of the data breach and the information that was stolen, the customers who are affected can hold you liable and sue you for damages. You may also have to pay for notification expenses to inform customers affected by a breach, which cyber insurance can help cover.
Product liability insurance
Product liability insurance helps protect you against liability claims and lawsuits arising from the products you sell and distribute at your restaurant franchise location.
It also protects your Toronto franchise restaurant from design, manufacturing, or marketing defects, such as incorrect labelling and safety warnings.
At Western Financial Group, we help Canadian business owners understand what their insurance covers and offer expert advice to make sure you’re protected for unexpected events.
What other types of insurance do Toronto franchise restaurants need?
Equipment breakdown coverage
Equipment breakdown insurance for Toronto franchise restaurants covers the costs of repairing or replacing equipment, such as fridges, that suffer a sudden or accidental mechanical or electrical breakdown, due to an insured peril.
Commercial property insurance
Commercial property insurance can help keep you protected from property losses, such as theft, fire, or vandalism. It also protects your Toronto franchise restaurant business in case of a windstorm or other severe weather but check the details of your policy. You can also add earthquake insurance, sewer backup, or flood coverage extensions to your commercial property insurance.
You’ll need to do an inventory of all your business property to determine how much commercial property insurance you will need. Your Western business insurance expert can help you with this.
How can small business owners save on their insurance with Western?
Western helps business owners save on their insurance with the following:
- Bundle and save: They’re generally available when you bundle liability, commercial auto, and property insurance.
- Multiple quotes to suit your needs: Western is a national insurance broker that partners with Canada’s leading insurers. We’ll get you multiple business insurance quotes to suit your needs and to help you save money.
- Cost: Depends on factors such as services provided, location and size, deductibles, revenue, and any past claims
Business interruption insurance
This coverage supports you when your Toronto franchise restaurant can’t operate due to a covered loss.
There are a number of losses that can force your business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial auto insurance
If you use vehicles for deliveries or other business operations, your restaurant franchise will need commercial auto insurance.
Let Western Financial Group help you protect your Toronto franchise restaurant with commercial insurance
What Toronto franchise owners need to know
- Franchise agreement requirements: Many franchisors require certain minimum liability limits, or specific coverages (e.g. product liability, liquor liability, property damage, naming franchisor as additional insured).
- Uniformity across locations: If you have multiple outlets, some provinces or insurers require consistency in coverage. Inconsistency may lead to gaps or higher costs.
- Local regulations and licensing: Liquor licenses, health department regulations, fire codes etc. can affect what insurance you must carry.
- Risk management / safety practices: Having strong procedures (e.g. food safety training, cleaning, employee training, and inspection of equipment) can reduce premiums or help with claims.
- Documenting inventory / equipment value: Make sure you have good records; undervaluing can lead to underinsurance.
- Liability for delivery / third‑party platforms: If you use delivery services, clarify who is liable (you or the platform) in case of accident/damage.
- Premium assumptions & renewals: Insurers revisit risk each renewal; claims history, changes in revenue, or renovations can affect rates.
Rough cost estimates and pricing factors
While cost can vary a lot based on location, size, revenue, number of employees, serving alcohol or not, etc., here are some ballpark points:
- For small to medium‑sized restaurants (no alcohol, basic setup), comprehensive insurance might start around CAD $1,000–$2,000/year.
- If you serve alcohol, have multiple locations, expensive equipment, or high risk (live entertainment, high liquor sales) the cost goes up substantially.
- Insurance premiums tend to be higher in areas with higher crime or risk of natural disasters.
Here’s an insurance check list for your Toronto business
- Do you have the best business insurance rate for your business?
- Do you have the right amount for your deductible and regularly review to make sure it’s the right amount for your business?
- Is your number of employees up to date?
- Are you using your personal car for business purposes?
What do I do if I have an insurance claim?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western makes insurance easy for you
We get multiple insurance quotes for you to choose from and give you policy coverage options that suit your Toronto business’s specific needs at the right price for you.
Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.
Western Financial Group’s restaurant insurance programs are among the leading hospitality offerings in Canada, consistently delivering reliable and trusted coverage to members nationwide.
Why Western?
We’ll get you the best business insurance
We’ll help you save money.
We’re 100% Canadian!
Serving Canadians for more than 100 years!
Franchisee FAQs
Who pays for the insurance, me or the franchisor?
You (the Toronto restaurant franchisee) are responsible for obtaining and paying for your location’s insurance. This includes naming the franchisor as an additional insured if required.
What’s the difference between franchisor insurance and mine as a Toronto restaurant franchisee?
Franchisor insurance covers corporate-level liability, trademarks, and oversight risks. Franchisee insurance protects your individual business (premises, staff, customers). You operate independently and need your own policies as a Toronto restaurant franchisee.
Who handles claims, me or the franchisor?
You handle claims through your own insurance broker or provider as a Toronto restaurant franchisee. You may need to notify your franchisor depending on your agreement.
What is a Certificate of Insurance (COI), and do I need to submit it?
Yes. A COI is a summary document from your insurance provider showing: What policies you hold as a Toronto restaurant franchisee, their limits and expiration dates, and that the franchisor is listed as “additional insured” (if applicable). Franchisors usually require this annually, or at renewal.
Do I need to insure the building, too?
If you own the building, yes, you must insure the structure. If you lease the space, you usually insure only contents, fixtures, and improvements. Some landlords also require tenant’s legal liability insurance from franchisees.
Do I need different insurance if I offer delivery?
Yes. If you or employees use vehicles for deliveries: You need commercial auto insurance. Personal vehicle policies won’t cover business for your Toronto franchise restaurant. Some delivery platforms (e.g. Uber Eats) offer limited coverage, but it may not fully protect you.
What does ‘naming the franchisor as additional insured’ mean?
It gives your franchisor legal protection under your policy in case they're named in a lawsuit involving your Toronto restaurant franchise business. It’s common and typically required.