Restaurant Insurance in Ontario

Restaurant Insurance in Ontario

December 1, 2022 / 5 mins read

You’ve got a lot on your plate. You need to serve your customers delicious food in a relaxing and pleasant atmosphere.

Your reputation counts to help keep your tables filled. You also need to be prepared for unexpected risks and events that could harm your restaurant and your customers.

Ask your Western business insurance expert about what type of restaurant insurance package you need for your Ontario restaurant to protect your investment.

If you’re a restaurant owner in Barrie, Georgetown, Milton, Markham, Vaughan, Toronto, Waterloo, London, Pembroke, Cornwall, or elsewhere in Ontario, we understand the restaurant insurance package that you need to protect your business. We will tailor your restaurant insurance package to suit your needs.

Western Financial Group works with The Ontario Restaurant Hotel and Motel Association (ORHMA) to develop group insurance programs that are specific to the province’s restaurant industry.

Speak to your Western business insurance expert about how these types of insurance solutions can benefit your Ontario restaurant.

Why do I need a restaurant insurance package?

You need a restaurant insurance package to help protect your business.

Your restaurant insurance package can provide coverage for the different kinds of risks you face, such as an equipment breakdown, food poisoning, property damage, alcohol-related incidences, or a slip and fall.

Let’s go over the different types of insurance coverages for restaurants.

Commercial Property Insurance (CGL):

This type of insurance helps protect your restaurant from a loss if you’re found legally liable for bodily injuries either on or off your restaurant’s premises. CGL can help pay legal and medical costs if a customer is injured at your restaurant; for example, they slip on wet floor or on an icy patch on your restaurant’s sidewalk.

It’s important to note that without commercial liability insurance, you would be responsible for paying any liability costs out of your own pocket.

Commercial general liability insurance also covers:

  • Property damage caused by your business
  • Settlements
  • Damage to property that your restaurant rents
  • Libel, defamation, slander, and false advertising
  • Product liability

Liquor Liability Insurance: If you serve alcohol, a lawsuit resulting from liquor liability could seriously damage your restaurant’s reputation and threaten its future.

Your restaurant and your employees could be held legally responsible for damages or injuries caused by a customer you serve where alcohol was determined to be a contributing factor. You can be held liable for overserving a customer or serving an underage customer.

Liquor liability insurance provides coverage for bodily injury or property damage for which you or your restaurant has been deemed legally liable as a contributor to the person’s intoxication. If you are sued and found negligent, this type of insurance would provide funds for legal fees and damages resulting from the lawsuit where you are found legally liable under the Liquor License and Control Act.

Commercial Property Insurance: You’ll need to do a total inventory of all your business property to determine how much commercial property insurance you will need. Commercial property insurance protects your restaurant’s building, property, and contents.

Property you may need to insure:

  • Furniture, equipment, supplies
  • Boiler
  • Inventory
  • Computers
  • Documents such as payroll, accounts receivable for your restaurant

Your restaurant could have damage due to such things as a kitchen fire, an equipment failure, plumbing or wiring problem, water damage or fire, or damage caused by an employee or customer.

This type of insurance provides financial support if your property, fixtures, furnishings, and inventory are damaged or lost due to fire, flood, extreme weather, theft, or vandalism.

Commercial property insurance doesn’t cover your restaurant against earthquakes and floods. You’ll need to get customized flood insurance and earthquake insurance.

Talk to your Western business insurance expert about how much commercial property insurance you need to protect your Ontario restaurant.

Equipment Breakdown Insurance: If there’s a power outage, air conditioning or heating failure, or appliance breakdown, it can lead to property damage and possible business interruption.

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. It covers property damage, business interruption when it’s included in your policy, and spoiled inventory or contents when specified kinds of mechanical, electrical and pressure equipment are damaged, including power surges.

You can insure nearly everything for loss that is mechanical, electrical, electronic or under pressure due to breakdown. This includes boilers, air conditioning and refrigeration units, electrical panels, computers and security, and telephone systems.

Go over the specifics of equipment breakdown coverage with your Western business insurance expert to protect your restaurant.

Business Interruption Insurance: This type of coverage helps support you when your restaurant can’t operate due to a covered loss. Bills like repairs, inventory, rent, and payroll keep rolling in even if your business is forced to close.

Some examples of losses that can force your business to shut down:

  • Your restaurant is damaged by fire or vandalism
  • A disruption in your supply chain
  • Damage to a neighboring business prevents your business from operating

Business interruption insurance can help with expenses such as payroll, rent, utilities, property taxes and relocation of your business.

It can mean the difference between temporarily closing and permanently closing your business. Get the specifics from your Western business insurance expert to protect your hotel or motel.

Product Liability Insurance: Your restaurant supplies food and/or drink to customers. You will need product liability insurance cover to protect yourself if a product causes illness or injury.

This type of insurance protects your restaurant legal liability for claims for bodily injury or property damage arising from products you sell to your customers.

Crime Insurance: This type of insurance helps protect you against certain types of losses that are not covered by a standard commercial property policy, such as employee theft, credit, debit or automated teller theft, counterfeit money, or loss of money at your restaurant.

Cyber Insurance: Your restaurant probably processes numerous debit and credit card transactions every day. Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your 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.

Commercial Auto Insurance: Your personal car insurance won’t cover your vehicle if you are using it for your restaurant business, such as deliveries.

Commercial auto insurance will cover damage to your business vehicle if you or one of your employees gets injured in an accident and your liability to others. It also provides replacement car coverage if you need to rent a temporary car for your business after a covered accident.

How much is insurance for a restaurant in Ontario?

It’s recommended that restaurants have at least $2 million in commercial general liability (CGL) coverage. Discuss with your Western business insurance expert how much CGL coverage you need and other coverages you need.

The size of your restaurant, number of employees, and claims history will be factors in how much liability insurance you need.

Not all restaurants are the same. It’s unlikely that all would pay the same monthly or annually for their coverage. Ask your Western business insurance expert to help you get the right coverage at the right value for you.

Your Western insurance expert will go over in detail what is needed to protect your restaurant.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Ontario restaurant the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your restaurant.

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