Protect Guests, Minimize Risks with Ontario Hospitality Insurance
Ontario hospitality insurance protects your hotel, motel, or restaurant with customized coverage against lawsuits and unexpected losses.
The hospitality industry in Ontario can face lawsuits, cyberattacks, vandalism, equipment failure, theft, and other unexpected events that can impact daily operations. Reducing risk and financial loss means having hospitality insurance that specifically meets the needs of your Ontario hospitality business.
Western Financial Group, a 100% Canadian company, can help you navigate your business, car, and home insurance during this period of economic uncertainty.
Did you know? Western Financial Group is proud to partner with the Ontario Restaurant Hotel & Motel Association (ORHMA) to launch the new ORHMA Employee Benefits Program, an exclusive group health insurance solution designed specifically for hospitality businesses across Ontario.
Built for restaurants, hotels, and other hospitality employers, this program offers preferred pricing, flexible coverage options, and a white-glove service model that puts ORHMA members first.
What is hospitality insurance?
Hospitality insurance is a customized commercial insurance policy to protect your Ontario hospitality business from financial losses, damages, and legal claims.
What Ontario businesses need hospitality insurance?
Hospitality insurance is recommended for the following Ontario businesses:
- Hotels, motels, and inns
- Restaurants
- Bed and Breakfasts
- Bars, pubs, lounges
- Cabins and cottages
- Cafes, coffeeshops, and cafeterias
- Art galleries and museums
- Campgrounds
- Concession stands
- Delis
- Dinner theatres
- Gift shops
- Golf courses
- Music clubs and venues
- Spas and wellness centres
- Ski resorts
Business liability insurance should be a key part of your commercial insurance for your Ontario hospitality business. Here’s what you need:
Commercial general liability (CGL) insurance
Hospitality businesses in Ontario need commercial general liability insurance. Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property out of your own pocket.
For example, if a customer were to sue you after slipping on a wet floor at hotel, commercial general liability insurance would cover the legal costs to defend the claim as well as the costs to compensate third parties whether you win or lose your case.
What kind of risks does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
How much CGL insurance do I need for my Ontario hospitality business?
It’s not uncommon that an Ontario-based hospitality business would carry at least $2 million in CGL coverage, if not more, but that depends on its size and activities. Ask a Western Financial Group business insurance expert to help you determine how much CGL coverage your hospitality business needs.
Cyber liability insurance
Do you accept credit and debit cards? Your Ontario hospitality business could be hacked by cyberthieves. Cyber liability insurance will help protect you financially should it experience a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. Cyber liability insurance helps cover the costs for this.
Product liability insurance
If a customer gets sick after eating food at your Ontario hospitality business, product liability insurance can help cover the cost of the customer’s medical expenses and your legal and court-related costs to defend yourself.
For example, a customer claims that the food served gave her a serious case of food poisoning, causing her to miss work for an extended period. The customer successfully sued your Ontario hospitality business for bodily injury. Your product liability insurance would help cover the legal expenses and the costs to recall the product.
Liquor liability
For Ontario hotels, motels, restaurants, and other establishments that serve alcohol, liquor liability insurance protects your establishment from losses, damages, or other expenses arising from the injury or death caused by an intoxicated customer.
The costs to defend or settle a lawsuit can add up quickly. Does your Ontario hospitality business have enough liability insurance to protect against lawsuits?
What other insurance do Ontario hospitality businesses need?
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Ontario hospitality business if it’s damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
This type of insurance helps support you financially when your Ontario hospitality business can’t operate due to a covered loss.
There are a number of losses that could force your business to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Equipment breakdown insurance
Your Ontario hospitality business likely has expensive refrigeration equipment to keep your products either frozen or refrigerated.
Equipment breakdown insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy.
Crime insurance
It should be part of your Ontario hospitality insurance package.
Crime insurance can protect you against theft, credit card fraud, forgery, counterfeit, and other types of fraud that employees sometimes commit.
Commercial auto insurance
If you have a business car, van, or truck that you use for business, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.
Sewer backup insurance and overland flood insurance
Heavy rainfall, melting snow, and storms can overwhelm drainage systems, leading to sewer backups and overland flooding. Ontario hospitality businesses located in flood-prone areas or areas with aging infrastructure are at risk, and the risk is likely to increase over time.
Consider sewer backup insurance and overland flood insurance for your Ontario hospitality business.
At Western Financial Group, we help Ontario business owners understand what their insurance covers and offer expert advice to make sure you’re protected for unexpected events.
How can Ontario 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
Final thoughts
Your hospitality business is your livelihood. Protect your Ontario hospitality business with enough commercial insurance to keep your doors open and your customers coming back in case you face a lawsuit, fire, vandalism, equipment failure, or flooding. Adequate insurance is a smart business decision!
Why Western?
We’ll get you the best Ontario business insurance
We’ll help you save money.
We’re 100% Canadian!
Serving Canadians for more than 100 years!
5 FAQs
How much is insurance for a hospitality business in Ontario?
There isn’t a set price because each hospitality business is different. Insurance for a hospitality business in Ontario typically ranges from about $500 to $5,000 annually for small to mid-sized operations, depending on the risk level, business size, location, annual revenue, number of employees, any past claims, and specific coverage needs. Ask a Western Financial Group business insurance expert to help you determine coverage for your Ontario hospitality business.
Why is cyber liability insurance important for an Ontario hospitality business?
Small and medium-sized businesses are becoming more frequent targets of cyberattacks. Hospitality businesses store guest and payment data, often across multiple platforms such as online reservations, point-of-sale, and loyalty programs. The financial impact of a cyberbreach is expensive and usually includes recovery costs, regulatory fines, and legal fees. There’s also reputational damage after a cyberattack. Cyber liability insurance helps financially protect your Ontario hospitality business in case of a cyberattack. Ask a Western Financial Group business insurance expert about cyber insurance for your Ontario hospitality business.
How does commercial property insurance cover severe weather that could damage my Ontario hospitality business?
Commercial property insurance covers severe weather by reimbursing businesses for repair or replacement costs resulting from insured perils like wind, hail, storms, tornadoes, fires (including wildfires), and lightning. Standard policies generally protect buildings, inventory, equipment, signage, and business contents against these weather-related events. Note that coverage for earthquakes and floods is often excluded and must be added as optional endorsements or as a separate policy for your Ontario hospitality business.
How can I lower my commercial insurance premium for my Ontario hospitality business?
You can take the following steps:
- Regularly review your policy: Remove unnecessary coverage and update your policy as your business changes to avoid paying for coverage you don't need.
- Increase your deductible: A higher deductible means lower premiums. Choose the highest amount you can afford without negatively affecting your cash flow.
- Risk reduction and safety protocols: Maintain clear walkways, invest in fire prevention, and ensure cash and valuables are secured. Businesses with strong safety records often pay less for insurance.
- Avoid making small or frequent claims: Handle minor damages out-of-pocket so your claims history remains clean, which leads to lower rates over time.
- Work with an insurance broker: Western Financial Group is one of Canada’s leading insurance brokers. Western works with insurance companies to get you multiple insurance quotes and you choose the quote that fits your needs and your budget.
- Bundle policies: Consider placing multiple policies (property, liability, auto) with the same provider for package or loyalty discounts.
Is it okay to underinsure my Ontario hospitality business to save money?
This strategy is not recommended because it puts your Ontario hospitality business financially at risk if there is a lawsuit or unexpected event like a fire. The losses could exceed the lower insurance limit you chose, leaving your hospitality business responsible for the balance. Is that a strategy you can afford?
