Restaurant Insurance Ontario

Learn about your restaurant insurance options. The hospitality industry in Ontario can be unforgiving, and it’s a constant challenge for restaurant owners to deliver exceptional food and service while maintaining profitability.

Get a Quote

Those who run restaurants in Ontario are often some of the most passionate business owners, investing time and money to deliver a high-quality experience to their guests.

What kind of insurance do restaurants need?

These challenges are magnified when you consider that risks related to property damage, equipment breakdowns, crime and liquor liability must also be addressed. Our restaurant insurance brokers compiled this list and provide an overview of the Ontario restaurant industry risks and more—helping you identify potential blind spots in your risk management and restaurant insurance programs.

  • Property Insurance
  • Equipment Breakdown Insurance
  • Crime Insurance
  • Inland Marine Insurance
  • Commercial General Liability Insurance
  • Food and Product Liability Insurance
  • Liquor Liability Insurance
  • Business Interruption Insurance
  • Cyber Insurance
  • Commercial Automobile Insurance

Property Insurance for Restaurants

Property exposures in restaurants are substantial and can come from many sources, including equipment failures, food spoilage, natural disasters, customers, employees and other third parties.

When discussing property exposures for restaurants, fire and water damage are of particular concern, and restaurants face an elevated level of risk due to things like open flames, the wide use of combustible items (e.g., tables, chairs and linens), complex HVAC systems, sewer backups and appliances connected to water lines (e.g., dishwashers).

Solution: Property Insurance

Equipment Breakdown Insurance for Restaurants

Restaurants depend on functioning equipment to service their guests effectively.

In the face of an equipment breakdown (e.g., refrigeration unit leaks and cooking appliance malfunctions), restaurants can experience business interruptions or even prolonged closures.

Equipment breakdowns can even lead to major property damage should an appliance leak or start a fire, compounding the cost for your restaurant.

Crime Insurance for Restaurants

Crime can be a challenge for restaurant owners, especially because their operations often have a steady amount of cash flowing in and out.

To make matters worse, thieves can strike at any time, leaving owners to recoup any lost funds or equipment.

In this day and age, thieves (including your employees) do not need direct access to cash to steal from you—merchandise, supplies and securities are all fair game. The location of your restaurant as well as its hours of operation can have a significant impact on its level of crime risk.

Solution: Crime Insurance

Inland Marine Insurance for Restaurants

As a restaurant owner, you are responsible for property that may not be covered by traditional insurance. Inland marine coverage can fill these gaps in commercial property protection.

Without an inland marine policy, property that’s unique or valuable, in transit, in your temporary care, stored at fixed (but movable) locations or used to transfer information represent major exposures. Specifically for restaurateurs, inland marine insurance can provide much needed protection for accounts receivable, computer equipment, data and records, food transported to various locations and food trucks.

Other Restaurant Insurance Options

Premises liability exposures at restaurants can directly affect patron safety and, when injuries occur at your business, you could be held responsible. Accidents related to slips, trips and falls; burns and scalds; and cuts are common and a major source of concern. Something as simple as a hot plate, a spilled drink or an uneven surface can lead to costly insurance claims following an accident.

Food safety is an important consideration for restaurant owners and a primary source of food and product liability.

The potential for food poisoning, contamination, spoilage and allergic reactions is ever present, making continued customer safety a challenge. In the event that one of your customers becomes ill due to your food or accidentally ingests a foreign object found in one of your menu items, your restaurant could face legal ramifications and suffer irreversible reputational damage.

Lawsuits related to liquor liability are filed each day, and it’s increasingly common for victims and their families to file suits against restaurants for their role in serving a customer who is then involved in an alcohol-related accident.

All it takes is a single liquor liability claim to put your entire business at risk.

Liquor liability exposures for restaurant owners can stem from selling liquor to underage individuals, over-serving patrons and non-compliance with applicable legislation.

Continuity is critical in business, and there are few things more important than continuous revenue and cash flow, particularly for small to medium-sized organizations. In fact, just one brief business interruption can be incredibly costly for an organization, often leading to serious reputational damages or long-term closures. Common interruptions for restaurants can include natural disasters, fires, food recalls, cyber events, staff shortages and supplier issues.

Restaurants are a common target for cyber criminals, as they often process a high volume of credit and debit card information. In addition, employees who are improperly trained on computer and data safety could put your organization at risk to ransomware, viruses, phishing scams and malware.

Solution: Cyber Insurance

Compounding your exposures, many restaurants offer guest Wi-Fi that, if improperly secured, can put you and your guests at risk of an attack.

Depending on the services your restaurant offers, employees may be required to operate a vehicle on behalf of your business, creating automobile exposures in the process.

While important for daily operations, the improper use of a vehicle can lead to potential accidents and major insurance claims. What’s more, if you allow employees to use their own vehicles for work, standard auto policies are often not enough.

Providing valet parking can also create unforeseen challenges should a customer’s vehicle get damaged.

Solution: Commercial Auto Insurance

Work With Experienced Restaurant Insurance Brokers

While the proper risk management practices can reduce certain exposures, no system is 100 per cent effective in ensuring an accident-free workplace. As a result, it’s all the more crucial to work with a qualified restaurant insurance broker to not only assess you exposures, but secure the appropriate coverage as well.

Free Download: Restaurant Employee Safety Manual (Click to download)

Restaurant

 Insurance Quote

Enter the following information and one of our dedicated business insurance brokers will get back to you right away!

Name*
Email*
Phone Number
Please describe your insurance requirements:*
Thank you! Your submission has been received!
For immediate assistance, contact one of our professional insurance brokers: 613-236-9101
Oops! Something went wrong while submitting the form.
Your Guide to Commercial Drone Use
Your Guide to Commercial Drone Use
Adding drone operations to any business is risky. Thankfully, there are ways to limit your risk to drone operations, including drone liability insurance. Read our complete guide to commercial drone use.
Read More
Preparing Your Business for Flooding
Preparing Your Business for Flooding
Neglecting to prepare your property for possible flooding can sink your business. Stay afloat with solid preparation and a thorough flood plan.
Read More
Contractors Pollution Liability: Insurance Solution To Protect Contractors Against Environmental Liabilities
Contractors Pollution Liability: Insurance Solution To Protect Contractors Against Environmental Liabilities
Contractors pollution liability insurance should be a part of every contractor's insurance solution. Protect against third-party bodily injury, death, and damage to property as a result of sudden or gradual environmental liabilities.
Read More
5 Common Types of Construction Fraud
5 Common Types of Construction Fraud
While you may think construction firms are not an attractive target for cyber criminals, the truth is no business is safe from cyber crime.
Read More
Protecting Your Business Against Online Fraud - Cyber Liability
Protecting Your Business Against Online Fraud - Cyber Liability
Online fraud is becoming one of the most popular forms of fraud among cybercriminals. Learn how to protect yourself and your business from online fraud.
Read More
Why Design-Build Contractors Need Professional Liability Insurance
Why Design-Build Contractors Need Professional Liability Insurance
Design-build contractors face unique liability risks and must consider professional liability insurance to fill in gaps cause be general construction liability insurance.
Read More