Is Your Toronto Grocery Store Protected Against Lawsuits?
Toronto grocery stores can face third-party lawsuits from customers involving injury or property damage claims. Without enough liability insurance you leave your grocery store financially exposed to lawsuits that can be damaging to your food business.
When you make liability insurance the cornerstone of your business insurance you are taking steps to financially protect your Toronto grocery store against legal claims.
Western Financial Group, a 100% Canadian company, can help you navigate your 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 work with our insurance partners to find the best business coverage at the best rate for you.
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 at the right price for you.
What is Toronto grocery store insurance?
Toronto grocery store insurance protects your business from the risks you face in the food business. Liability insurance is the cornerstone of your Toronto grocery store insurance package to financially protect it from lawsuits.
Other insurance coverages in your grocery insurance package protect your inventory, equipment, and physical store and well as financially protecting your grocery store business from theft, fire, vandalism, and severe weather.
Who needs grocery store insurance in Toronto?
- Independent grocery stores
- Grocery store chains
- Convenience and corner stores
- Delicatessens
- Specialty grocery stores
- Fruit and vegetable stores
- Markets
- Mom-and-pop stores
What liability coverages do I need for my Toronto grocery store?
Commercial general liability (CGL) insurance
Grocery stores can have wet and slippery surfaces both inside and out and that can mean customers slipping and falling. Customers can also accidentally knock items off a shelf or drop a product, which can create potentially hazardous situations for themselves and other customers.
You need commercial general liability insurance because it protects your Toronto grocery store when there is a third-party bodily injury or damage on the premises, which could result in a lawsuit against your food store.
- CGL insurance generally covers medical fees, legal expenses, and settlements regardless of the outcome of a lawsuit by a customer against you.
- Your policy should protect you from libel, slander, copyright infringement, and false advertising allegations.
It’s not uncommon that a Toronto grocery store owner would carry at least $2 million in CGL coverage, or $5 million and beyond depending on the size of your operation.
Ask your Western Financial Group business insurance expert how much CGL insurance you need to protect your Toronto grocery store.
Product liability insurance
As a Toronto grocery store owner, your products could be contaminated and make customers sick. When this happens, you could be held liable for any damages.
Product liability insurance helps protect you against liability claims and lawsuits arising from the products you sell and distribute.
If a product makes a customer sick, this type of insurance can help cover costs from a potential lawsuit.
It also protects your Toronto grocery store from damages from design, manufacturing, or marketing defects, such as incorrect labelling and safety warnings.
Product recall insurance
This type of coverage reimburses you from financial losses sustained when a product is recalled whether the government or a manufacturer orders the recall. The costs can include the recall expense, replacement costs, lost profits, and brand rehabilitation expense.
A Toronto grocery store owner can face serious financial consequences without product recall insurance because you would have to absorb the losses yourself. This can be financially devastating, especially if you are named in a third-party personal injury or property damage lawsuit.
Cyber liability insurance
If your Toronto grocery store takes credit card or debit payments, you must protect this form of payment and can be held liable if you don’t.
If your grocery store’s computer system is hacked, cybercriminals can sell the information. Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your Toronto food store’s computer system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.
What other insurance do Toronto grocery stores need?
Equipment breakdown insurance
Your Toronto grocery store likely has expensive electrical and mechanical equipment to keep your frozen and fresh food non-perishable and safe for consumption.
This type of insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy. You’ll need to have a list of the equipment at your Toronto grocery store and how much it’s worth.
Commercial property insurance
Whether you own or rent your Toronto grocery store’s location, commercial property insurance protects your store and its contents from insured risks that can happen, such as fire, theft, flood, or vandalism.
If vandals smash a store window, commercial property damage could cover the costs of replacing the window and cover any damage or vandalism inside your business.
Commercial property insurance does not typically include flood insurance. What if there’s heavy rain and the sewers back up and your business is flooded?
You should consider adding sewer backup or overland flood coverage extensions, which standard business insurance policies typically do not cover.
You’ll need to do an inventory of all your business property to determine how much commercial property insurance you will need for your Toronto grocery store.
Let your Western business insurance expert explain in detail what is covered under commercial property insurance.
Crime insurance
This coverage should be a part of your Toronto grocery store insurance package.
It can protect you from theft, credit card fraud, forgery, counterfeit, and other types of fraud that employees sometimes commit.
Business interruption insurance
Business interruption insurance supports you when your Toronto grocery store can’t operate due to a covered loss. This type of insurance can be the difference between recovering from a loss and closing your doors permanently.
There are many losses that can force your business to shut down, including:
- 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 have a business car that you use for your Toronto grocery store, it won’t be covered by your personal car insurance policy.
How much does Toronto grocery store insurance cost?
There isn’t a set price for Toronto grocery store insurance. It will depend on factors such as:
- Location and size
- Number of employees
- Annual revenue
- Any past claims
- What you sell
What do I do if I have a claim against my Toronto business?
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.
Here’s a commercial insurance checklist:
- Do you have the best Toronto business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage for your Toronto grocery store business. Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.
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5 FAQs about grocery store insurance
Does Toronto grocery store insurance cover online sales or delivery operations?
Yes, typically it does. Cyber liability covers online data breaches and commercial auto insurance is needed for delivery vehicles. You need to tell your business insurance provider if you are doing online grocery sales and also have grocery delivery services.
How do I determine the right amount of commercial insurance coverage for my Toronto grocery store?
You will need to assess your Toronto grocery store’s value, including inventory, equipment, and real estate, if you own the building that it’s in. What’s your annual revenue? How many employees do you have? Do you have delivery vehicles? What are your risk exposures? Do you have any past insurance claims? Make a list and discuss the value of your grocery business with your business insurance provider.
Should I annually reassess the business insurance for my Toronto grocery store?
Yes, you should. Your commercial insurance needs change as your Toronto grocery store grows, diversifies products, or expands services. Review your coverage annually or after major business changes, such as a change in location or products you sell.
Do grocery stores get sued?
Yes, Toronto grocery stores can get sued. The most common types of lawsuits against grocery stores include Slip and fall accidents, product liability issues, and false/deceptive advertising and pricing.
Are there grocery store lawsuits in Canada over product weight or labelling?
Disputes over product weight and labelling are increasingly common in grocery store lawsuits. Class-action cases have been filed against major grocery chains in both Canada and the United States, alleging that some stores routinely overcharged customers by including the weight of packaging in the price of meat and seafood, or by selling products that weighed less than stated on the label.