Hospitality Insurance

Hospitality Insurance

Protect your hospitality business with comprehensive business insurance designed for Canadian hospitality owners, so you can focus on delivering unforgettable guest experiences with confidence.

Trusted by 100,000+ Canadian Small Businesses

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Trusted by 100,000+ Canadian Small Businesses
Save up to 35% on your insurance
Get the best insurance quote in a few clicks!
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Zensurance - Hospitality Business Owner

Partnerships with over 50 leading Canadian insurance providers

Partnerships with over 50 leading Canadian insurance providers

Hospitality Worker

Business Insurance for Canadian Hospitality Businesses

As a small business owner in the Canadian hospitality industry, you’re focused on creating welcoming, memorable experiences for your guests. Their safety, comfort, and satisfaction are central to your reputation and your success.

But hospitality businesses face some of the highest risk exposure of any industry in Canada. From slip-and-fall injuries and foodborne illness to liquor-related incidents, cybercrime, equipment failures, extreme weather, and third-party lawsuits, even one unexpected event can disrupt operations or threaten your business financially.

A tailored hospitality insurance policy is a core part of your risk management strategy, helping protect your assets, income, staff, and long-term viability – no matter what happens.

Hospitality insurance is a specialized form of business insurance designed for hospitality businesses operating in Canada.

From restaurants, cafes, and bars to hotels, motels, bed and breakfasts, spas, golf courses, and event venues, hospitality insurance bundles multiple essential coverages into one customized policy to protect against financial losses, legal claims, and operational disruptions.

A hospitality insurance policy from Zensurance is built to address the full spectrum of risks Canadian hospitality businesses face, including liability claims, property damage, liquor exposure, and cyber threats.

  • Commercial General Liability (CGL) Insurance: Protects your business against third-party bodily injury and property damage claims.Example: If a guest slips, falls, and is injured on your premises, general liability insurance may cover their medical costs, and your legal fees and settlements.

    General liability coverage typically includes product liability insurance, which is essential for businesses that prepare, serve, or sell food and beverages.

    Liquor liability insurance is critical if alcohol is served. You may be held legally responsible if alcohol consumed at your establishment by a customer contributes to injury, property damage, or death.
  • Commercial Property Insurance: Covers repairs to or the replacement of your building, equipment, furniture, inventory, and contents following insured events such as fire, theft, vandalism, or severe weather.

    Many policies also include business interruption insurance, which can replace lost income and help pay ongoing expenses – like rent and payroll – while your business is temporarily closed due to a covered loss.
  • Equipment Breakdown Insurance: Covers sudden mechanical or electrical failures such as power surges or system malfunctions.This is especially important for hospitality businesses relying on HVAC systems, refrigeration units, freezers, kitchen appliances, and point-of-sale systems. 
  • Cyber Liability Insurance: If your business processes payments, takes online bookings, or stores customer data, cyber liability insurance is increasingly essential.It can help cover costs related to data breaches, ransomware attacks, phishing scams, legal claims, and regulatory notifications. 
  • Commercial Crime Insurance: Protects against employee theft, fraud, forgery, and other dishonest acts, including theft of cash during bank deposits. Commercial property insurance is required to add this coverage.
  • Commercial Auto Insurance: Required if your hospitality business owns or uses vehicles for work purposes, such as catering deliveries or guest transportation. Personal auto insurance typically does not cover business use.
  • Legal Expense Insurance: Provides affordable access to legal advice and representation, helping with employment disputes, contract issues, debt recovery, and Canada Revenue Agency audits – ideal for hospitality businesses without in-house legal teams.

The cost of hospitality insurance depends on factors such as:

  • The type of hospitality business
  • Your business’s location
  • Your years of experience as a business owner
  • How many people you employ
  • Whether alcohol is served on your premises
  • Your annual and projected gross revenue
  • Your insurance claim history

Many Canadian hospitality businesses are surprised to learn that comprehensive coverage can be more affordable than expected – especially when policies are properly tailored.

Any business operating in Canada’s hospitality industry should carry hospitality insurance, including:

Restaurants, cafes, bars, pubs, lounges, hotels, motels, inns, bed and breakfasts, caterers, food trucks, delis, concession stands, spas, salons, golf courses, ski resorts, campgrounds, music venues, gift shops, and recreational facilities.

Getting insured is quick and easy!

Complete our 5-minute online application for a free hospitality business insurance quote.

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Common Hospitality Insurance Claims

Commercial Insurance Canada Scenario

Problem: A severe windstorm damages your gift shop’s roof, causing water damage and forcing a temporary closure.

Outcome: Commercial property insurance may cover repairs, while business interruption insurance may replace lost income during downtime.

Beauty Insurance

Problem: A customer becomes ill after eating food from your deli and sues for damages.

Outcome: Commercial general liability and product liability insurance may cover legal costs and medical expenses.

Commercial Insurance for Contractors

Problem: Your hotel’s HVAC system fails during peak season due to a mechanical issue.

Outcome: Equipment breakdown insurance may pay for repairs or replacement.

Frequently asked questions

Will my hospitality insurance policy cover me if one of my employees falls for a phishing attack via email?

Provided you have cyber liability protection as part of your overall policy it will. You can prevent that from happening, however, by training your employees on how to spot and stop any kind of phishing attack.

Will a commercial auto policy cover me if my business’s cargo van is damaged in a collision?

If you include optional collision or upset coverage as part of a basic commercial auto policy, yes, you are covered for damage or loss of your van if it’s determined you are at fault for the accident. Without collision coverage, you are responsible to pay for damages to your vehicle in an at fault accident. If you are partially at fault or not at fault for a collision with another vehicle, the direct compensation-property damage (DCPD) portion of a basic commercial auto policy is designed to cover the cost of damages.

What coverage limit is best for commercial general liability coverage?

The amount of coverage you require for your policy depends upon what your business does and how much risk you face. You can choose between $1 million and $2 million worth of coverage for general liability. Most hospitality businesses err on the side of caution and select a $2 million coverage limit.

Why choose Zensurance?

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Ready to Protect Your Hospitality Business?

You’re focused on delivering exceptional service and unforgettable guest experiences. Let Zensurance help protect everything you’ve built.

Complete our online application to get a free quote. 

Our licensed Canadian brokers will recommend the right coverages, explain your options clearly, and compare quotes from over 50 insurers to find the best policy for your business and budget.

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