What Insurance Do Ontario Restaurants Need?
From customer injuries to kitchen fires, there's a wide range of potential liabilities that could impact your restaurant business in Ontario. That's why you need the right insurance package to protect your restaurant.
Here are the main types of insurance that every restaurant owner in Ontario should consider to protect their business, their employees, and their customers.
Commercial general liability (CGL) insurance
CGL insurance is the cornerstone of any business insurance policy, and it's especially important for restaurants. This coverage protects against claims of bodily injury, property damage, and personal injury for your customers and your suppliers.
For example: A customer slips and falls on your premises or if a staff member accidentally damages a customer's property. General liability insurance can cover the associated costs.
Commercial property insurance
Commercial property insurance covers the physical assets of your restaurant, including the building, equipment, furniture, and inventory. This insurance protects against events like fire, theft, vandalism, and sever weather. Given the expensive equipment and unique decor often found in restaurants, this coverage is a must to ensure your business can recover quickly from unexpected incidents.
Business interruption insurance
Restaurants across Ontario rely heavily on consistent operations to generate revenue. If a fire, flood, or another disaster forces you to close temporarily, business interruption insurance can cover lost income, ongoing expenses, and relocation costs if necessary. This coverage is a lifesaver when unexpected events threaten your business continuity!
Product liability insurance
As a restaurant, you're responsible for the food and beverages you serve. Product liability insurance protects you if a customer becomes ill or injured due to food contamination or improper preparation. This coverage helps cover legal costs and compensation claims, ensuring your restaurant's reputation remains intact.
Liquor liability insurance
If your restaurant serves alcohol, Liquor liability insurance is essential. This coverage protects you against claims resulting from alcohol-related incidents, such as fights, accidents, or injuries caused by intoxicated patrons. In Ontario, liquor liability is a critical component of a responsible business, as it demonstrates your commitment to customer safety and compliance with provincial regulations.
Cyber liability insurance
In the digital age, restaurants often rely on technology for reservations, payment processing, and customer communication. Cyber liability insurance helps financially protect your business from data breaches, cyberattacks, and other technology-related risks. This coverage can cover the costs of notifying customers, recovering compromised data, and defending against legal claims.
Do I need to insure my restaurant delivery drivers in Ontario?
The use of personal or company-owned vehicles for business purposes introduces additional risks that standard restaurant insurance policies may not cover.
Food delivery drivers face risks associated with driving, including traffic accidents, vehicle damage, theft, and personal injury. If a driver is involved in an accident while delivering food for your restaurant, you could be held liable for damages or injuries.
In Ontario, businesses that use vehicles for commercial purposes must have commercial auto insurance, which provides coverage for liability, property damage, and bodily injury resulting from vehicle accidents. It can also cover damage to the insured vehicle and protect against theft or vandalism.
If your delivery drivers use their personal vehicles, consider getting non-owned auto insurance, which covers your business's liability if a driver using their own vehicle for business purposes is involved in an accident. It does not cover the driver's personal vehicle; for that, the driver should maintain their own auto insurance.
Does my commercial property insurance cover my on-site restaurant?
If your restaurant is part of a larger business property, like a commercial building or shopping center, it doesn't necessarily mean that it's automatically covered by your pre-existing commercial insurance.
The insurance coverage for your restaurant depends on several factors, including the structure of the overall property insurance, the leasing or ownership arrangement, and specific policies or contracts in place.
In any situation, you should check all coverage with an insurance expert who understands the unique risks and regulations associated with Ontario's food and beverage industry to make sure your business is fully protected and to take advantage of any savings opportunities.
With the right protection in place, you can focus on providing excellent food and service, knowing that your business is secure.
