Learn more about business insurance for restaurants.

Do not Risk Your Restaurant – Get the Right Restaurant InsuranceSeptember 8, 2021

Operating a restaurant is one of the most rewarding and exciting businesses to own, but opening one brings many questions. One important consideration is the type of insurance you will need to operate a restaurant.

Having any type of business usually means purchasing a commercial insurance policy to protect yourself and your business. Having a restaurant can mean additional risks and exposures to insure against.

Read on to learn more about restaurant insurance, what it is, if you need it, and how to purchase it. Contact us at Duliban Insurance Brokers for more help with your restaurant insurance.


What is Restaurant Insurance?

Restaurant insurance is commercial insurance designed to provide coverage for restaurants and bars. It is similar to other types of small business insurance, but it should include more than just general liability coverage. Restaurants and bars have different and often unique needs as compared with other types of businesses, so your insurance coverage should reflect that.

There are lots of questions to consider as you plan your restaurant insurance needs. For example, will you serve alcohol at your establishment? Are you open late into the night or only for breakfast and lunch? Will you have live music at your venue? How many people will you need to hire?

Before you can open your doors as a restaurant in Canada, you need to have some insurance coverage. This differs from most other types of businesses that may begin to operate without purchasing insurance coverage.

What Should Restaurant Insurance Cover?

Restaurant insurance generally should include the following coverages:


  • General Liability Insurance – General liability coverage is important for all kinds of businesses and is mandatory for restaurants. This coverage is designed to help protect against claims of injuries due to slip and falls, burns, cuts, or other types of injuries.


  • Commercial Property Insurance – Your property insurance helps to protect your business from damages to the property from covered perils, such as storms, fire, or vandalism.


  • Commercial Auto Insurance – If you have vehicles for the business or if employees drive for work, like to deliver food, you may need a commercial auto policy for this exposure.


  • Liquor Liability Insurance – If you will serve alcohol at your restaurant, having liquor liability insurance is important. This coverage can help protect your business from claims made by people who are impaired by alcohol and have accidents.


  • Food Contamination Coverage – Restaurants and bars should consider purchasing Food Contamination Coverage. This type of policy is meant to provide protection from claims of food poisoning and other harm. The policy can cover both damages and legal expenses that result.


  • Business Interruption or Loss of Business Coverage – Business interruption coverage can be critical for a restaurant or bar. This coverage is designed to kick in if your business is not able to operate and has to be closed, resulting in a loss of revenue. Coverage only applies if your business has to close due to a covered peril.


  • Workers’ Compensation – If you have employees, you will likely need to have Workers’ Compensation insurance to protect them, and your business should a worker be injured while on the job. This coverage can help provide coverage for injured workers’ medical bills and loss of wages while they recuperate from workplace injury.

Ask your agent about these and other types of coverages you may need for your restaurant business. Every business is different and carries unique risks, so working with your agent to discuss the particulars of your operation is important.


What Happens if you do not Carry Restaurant Insurance?

It is risky not to carry the right insurance for your bar or restaurant business.

  • You Could be Fined: If you decide not to carry mandatory insurance coverage, you could face fines or other sanctions or even be forced to close your business until the situation is resolved. These fines can add up and be an expensive nuisance to handle.


  • Your Business Faces Unnecessary Risks: When you purchase commercial insurance, your agent will work with you to help risk manage your business. They can walk through your site with you and help identify risky situations you could remedy – for example, greasy vents that have not been cleaned, poor food handling practices, or uneven and slippery floors. This can perhaps stop a future injury or claim from happening. Managing risk can be a shared responsibility when you carry restaurant insurance.


  • You Could Lose Money: You could lose money that could have been recovered from an insurance policy by not having the proper insurance coverage in place. For example, if your business has to shut down for a few days, but you do not carry business interruption coverage, there is no remedy to seek from your insurer for your loss of income while your business was closed.


  • Your Business Could Close: If your business was sued, it might not be able to recover from the financial hardship of defending and paying the lawsuit and related costs. The effects could be financially devastating, and you could potentially lose your business and livelihood.


Do not risk your business because of a lack of insurance – we can help you to compare rates and find the right coverage to protect your restaurant business. It is easy to ask us for a customized review of your business and coverage needs or to start your quote online. You only need a few basic pieces of information to get started.


How do I Purchase Restaurant Insurance?

You have lots of choices of insurance carriers and policies when it comes to restaurant insurance, so be sure to shop around to compare your options. Different carriers may offer different packages, and your rates can vary.

We can help you to research and find the best option for your restaurant insurance coverage needs.


How do I Learn More?

To learn more about restaurant insurance, contact the experts at Duliban Insurance Brokers. Our licensed experts will be happy to answer any questions you have.


External Links:

  1. https://www.restaurantscanada.org/industry-issues/alcohol-cannabis/
  2. http://www.ibc.ca/sk/business/risk-management/liquor-liability
  3. https://www.canada.ca/en/employment-social-development/services/health-safety/compensation.html
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