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Restaurant Insurance Ontario

restaurant insurance Ontario
restaurant insurance Ontario
Sep 13 2022 3 min read

With everything an Ontario restaurant owner needs to worry about (food and service quality, inventory, cleanliness, marketing etc), whether or not they have the proper small business liability insurance should not be one of the things keeping them up at night.

GET A FREE RESTAURANT INSURANCE QUOTE

    We offer no cost quotes to business owners in the Hamilton, Niagara, Haldimand and Norfolk regions of Ontario.
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    WHAT IS RESTAURANT INSURANCE?

    While no insurance product is actually called “restaurant insurance”, there are customized business insurance policies that can be catered to exactly what a restaurant, cafe, bistro or bakery needs to protect their financial security.

    A restaurant insurance policy will cover the business itself as well as its staff and customers.

    IS RESTAURANT INSURANCE MANDATORY IN ONTARIO?

    While having small business insurance is not currently required by law in Ontario (well, unless you’re an electrician), any business consultant worth their salt will highly recommend it as a way to not only protect your business but also help your business grow.

    This is especially true for Canadian food service businesses like restaurants.

    small business insurance for restaurants

    WHY SHOULD RESTAURANTS HAVE SMALL BUSINESS INSURANCE?

    Business insurance is a must-have for Ontario restaurants for several reasons.

    1\ Helps with insulation against lawsuits.

    General liability insurance is priority 1A when it comes to building a custom restaurant insurance policy.

    Imagine if a customer slips on the way to the bathroom and injures themselves or if a restaurant employee spills drinks all over a group of cell phones lying on a table.

    Liability insurance is meant to protect a policyholder against claims of bodily injury and property damage so in both of these cases, a restaurant would be protected.

    2\ Helps cover legal costs.

    When an accident occurs and legal defence is required, most liability insurance policies come with legal assistance to help reduce or even eliminate out-of-pocket legal expenses.

    Some insurance providers, like Erie Mutual Insurance, offer a legal assist program that gives their policyholders access to complimentary 24/7 legal consulting.

    When you compare it with the costs of fighting a drawn-out liability lawsuit on your own, small business insurance payments are very cheap.

    3\ Could help cover lost income.

    When a restaurant is forced to shut down due to an insured peril (i.e. kitchen fire), having business interruption insurance as part of the custom restaurant insurance policy can be put into action to cover lost income until the business is up and running again.

    4\ Makes replacing equipment easier.

    Restaurants require a lot of expensive equipment to operate efficiently.

    The purchase and maintenance of cold storage, pantries, grills, ovens, fryers, stoves and cooking utensils are one of the reasons it’s difficult for a restaurant to become profitable even during the best of times.

    When equipment is lost or damaged due to an insured peril, a restaurant’s stock and equipment insurance policy can come in handy to help cover a portion or all of the replacement costs.

    5\ Could help generate more business.

    While smaller groups patronizing your restaurant may not give much thought to whether or not the establishment they’re attending has insurance, it could very well be one of the things that larger groups and planned events ask about before booking.

    Corporate holiday parties, wedding rehearsal dinners or even large birthday gatherings can all come with increased risk and the person choosing the establishment may want to make sure their selection is fully insured as a pre-requisite.

    This means if your restaurant does not have insurance you may be missing out on some significant revenue generation opportunities.

    Special note: If you serve alcohol in your restaurant make sure your insurance provider offers liquor liability insurance because not all of us do, including Erie Mutual Insurance.

    Learn more about how insurance protects restaurants.

    HOW MUCH DOES RESTAURANT INSURANCE COST IN ONTARIO?

    The cost of insurance for a restaurant varies depending on:

    • The size, type and location of the restaurant
    • What insurance policies are chosen
    • Insurance claims history
    • Experience of the owner
    • What safety training and measures are put into place

    If you’re a restaurant owner looking for an accurate idea of what you’d pay for insurance, you can submit a small business insurance quote request to get more information.

    Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.

    Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.

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