Restaurant Insurance

Canada’s restaurant industry is as diverse as its population, featuring culinary styles from around the world and limitless options for high-quality cuisine. With Canadians making 23 million visits to restaurants every day, it’s safe to say that the restaurant business is booming.

However, this industry also faces unique challenges. Restaurant insurance helps protect restaurant owners from financial setbacks and business interruptions caused by the nature of this thriving industry. KASE Insurance provides comprehensive food business insurance policies to safeguard against unexpected risks.

Image Source: Canva

What Is Restaurant Insurance?

Restaurant insurance in Ontario covers risks particularly associated with food service businesses. Whether you own a busy cafe or run a popular food truck, this type of insurance protects you from potential liabilities associated with food preparation, handling, and service.

Food business insurance provides comprehensive coverage for unforeseen accidents, such as food spoilage, third-party bodily injury, lost wages from equipment breakdown, business interruption due to natural disasters, and more. It gives your restaurant the financial protection it needs so that you can enjoy peace of mind.

Although you can’t guarantee 100% risk-free operations, with the right food business insurance coverage, you can plot a route to ensure you are protected in the event of unforeseen circumstances. However, as operational requirements vary by kitchen type, so do insurance requirements. 

Why Is Restaurant Insurance Important?

In restaurants, unexpected accidents can occur at any time and lead to financial consequences for your business. Without protection from a comprehensive insurance plan, hazards like food poisoning, appliance breakdown, alcohol-related injuries, and more can cause major business disruptions, lost profits, and damage to your reputation. Insurance for restaurants offers the following benefits:

Financial Protection:

Restaurant insurance helps cover the costs of property damage, liability claims, employee injuries, and business interruptions, ensuring you can recover from setbacks and maintain financial stability.

Business Continuity:

In the event of a fire, theft, or other unforeseen incident, insurance for restaurants enables you to resume operations quickly, minimizing downtime and ensuring a steady flow of service to your customers.

Enhanced Reputation:

Carrying comprehensive restaurant liability insurance showcases your commitment to safety, professionalism, and customer care, building trust with your patrons and partners.

Peace of Mind:

With restaurant insurance in place, you can focus on delivering memorable dining experiences, knowing your business is protected from the uncertainty of potential risks.

What Does Restaurant Insurance Cover?

Restaurant insurance offers coverage options that are not only specific to the restaurant industry, but also tailored to your business needs. Here are some general areas covered:

• Commercial General Liability Coverage: General liability covers third-party claims for bodily injury or property damage arising from your operations.
• Commercial Property Coverage: Commercial property insurance protects your professional equipment, tools, furniture, and property as a whole from monetary loss.
• Liquor Liability Coverage: This type of insurance protects your business against liabilities and costs related to incidents where an intoxicated customer injures themselves/someone else, damages property, or commits a crime.
• Worker’s Compensation Coverage: Worker’s compensation insurance provides employee wages protection and covers the medical expenses incurred due to injuries, illnesses, and accidents that occur on job sites.

Types of Restaurant Insurance

The restaurant industry faces unique challenges related to food handling and service, such as mitigating risks of foodborne illnesses, preventing slip-and-fall accidents, and addressing liquor liability concerns. A customized food business insurance policy is often the best option for business owners as it allows them to choose the type and scope of coverage required.

Here are some common restaurant insurance policy inclusions to protect against common risks:

Umbrella Insurance

Umbrella insurance provides an extra layer of protection by covering claims that exceed the limits of standard restaurant policies, such as general liability or commercial property insurance. This ensures financial security in the event of major lawsuits or significant liability claims.

Foodborne Illness Coverage

This specialized policy addresses risks associated with food safety. It covers legal and medical expenses stemming from claims of foodborne illnesses, allergic reactions, or contaminated food.

Commercial Automobile Insurance

For restaurants offering delivery services or operating mobile food trucks, commercial automobile insurance provides coverage for accidents, property damage, and injuries involving business vehicles. This ensures smooth operations and protects against costly liabilities on the road.

Business Interruption Insurance

Business interruption insurance compensates restaurants for lost income and operational expenses during unexpected closures caused by events like fires, natural disasters, or equipment breakdowns. This helps restaurants stay afloat while recovering from disruptions.

Equipment Breakdown Coverage

Equipment breakdown insurance policy protects against the financial impact of unexpected equipment failures, such as malfunctioning refrigeration units or kitchen appliances. It covers repair or replacement costs and may also cover losses related to spoiled inventory or business interruption.

Request a Consultation

Who Needs Restaurant Insurance?

All Ontario restaurants are legally and operationally required to have certain types of insurance to protect their business, employees, and customers. However, different business types have different coverage needs and can benefit from specialized insurance plans:

• Bakeries, Cafes & Coffee Shops: These restaurants serve customers on a daily basis and see a lot of foot traffic and digital payments. A restaurant insurance policy with add-ons such as cyber liability insurance and employer’s liability insurance is a good idea to protect against financial loss.
• Bars & Pubs: Bars and pubs, where alcohol is regularly served, face heightened risks such as intoxicated patrons, fights, or property damage. To protect employees, customers, and the establishment, business owners should secure workers’ compensation, liquor liability, and property insurance.
• Fast Food Restaurants: Quick service restaurants handle high volumes of customers and transactions daily. A tailored restaurant liability insurance policy can address risks such as food contamination, equipment breakdowns, and employee injuries.
• Food Trucks: Food trucks operate in a mobile environment, exposing them to unique risks such as vehicle accidents, equipment theft, and food spoilage. A combination of commercial auto, property, and product liability insurance is needed to keep your business protected while on the move.
• Food Delivery Services: Food delivery drivers face increased risks on the road while meeting tight deadlines. For food businesses offering delivery, commercial auto insurance is essential to protect against accidents, vehicle damage, and liability claims.
• Commercial Kitchens: Commercial kitchens are often shared by multiple businesses  and face risks such as equipment failure, fire, or third-party property damage that can disrupt daily operations. Comprehensive commercial restaurant insurance coverage, including general liability insurance, equipment breakdown insurance, and business interruption insurance, ensures your business is protected in these circumstances.

Why Choose KASE Insurance for Restaurant Insurance?

Whether it’s business interruption insurance, equipment breakdown insurance, or general liability insurance, the right insurance plan is key to protecting your business from unexpected fees and legal costs. When it comes to comprehensive restaurant insurance, Ontario business owners trust KASE Insurance to find the ideal solutions for them.

We understand the risks that restaurant owners face and will tailor a restaurant insurance package that meets their individual requirements. With competitive pricing and attentive service, our award-winning brokerage is here to help your business succeed.

Enjoy the peace of mind that comes from knowing your investment is safe. Get started with a restaurant insurance quote today!

Request a quote to learn more