Restaurant Insurance

Restaurant Insurance

Protect your restaurant from property damage, equipment breakdown, client injuries and liquor liability claims with Restaurant Insurance.

Join thousands of Canadian businesses that are already protected!

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Zen Man protected by restaurant insurance

Hi, my name is Max, and I’m a commercial insurance broker who specializes in coverage for restaurants and bars.

As a restaurant or bar owner in Canada, I’m sure you’re well aware of the risks faced by your business. Allegations of food poisoning, a client that has too many drinks and drives home, even a client that falls and slips on his way to the bathroom. These are just a couple of examples of situations where you could be the target of a lawsuit.

Some common types of food and drink businesses that seek insurance are bars, pubs, takeout restaurants, coffee shops, caterers, and more. Regardless of your restaurant type or how careful you are to avoid an accident, the fact of the matter is that accidents happen, and the costs can be so high that they could actually put you out of business.

So, what types of insurance do restaurants or bars need?

Starting with Commercial General Liability as to the most basic coverage. This is what provides protection for bodily injury and property damage caused to a third party. If you’re looking to enhance your package, you can also look at adding property coverage. This could provide protection for your equipment and inventory in the event of an insured accident. Further, business interruption coverage. This coverage is extremely important and pays you for the loss of income that could be incurred due to an insured disaster, such as a fire or flood. Additional coverage can always be added to your basic policy, and I suggest you chat with your commercial insurance broker for further advice and options.

A common concern for restaurant owners is often the cost of insurance. So, let me tell you about a few of the factors that come into this. Firstly, the number of years of experience in the restaurant, bar, or food services industry, as well as the projected revenue, the location of your restaurant, and of course, the coverage and limits requested.

To get an accurate price for your restaurant or bar insurance, hop on over to www.zensurance.com, press ‘Get A Quote,’ answer a couple of questions, and you’ll be well on your way to securing insurance for your restaurant or bar.

What is Restaurant Insurance?

Restaurant Insurance is a policy package that is designed to provide financial protection for those working in the food services industry by covering the costs associated with common risks, such as property damage, equipment breakdown, client injuries, and liquor liability claims.

Restaurant Insurance Coverage

What does Restaurant Insurance cover?

The most common policy types for restaurant owners are:

Commercial General Liability Insurance (CGL): CGL is a basic form of business insurance that protects you and your business from the most common risks you may face as a restaurant owner, such as third-party bodily injury (including food poisoning) and property damage. 

Commercial Property InsuranceCoverage for loss or damage to your property caused by external events, such as fire, theft, or vandalism.

Equipment Breakdown Insurance: Coverage for costs to repair or replace equipment that is broken or damaged as a result of an internal event, such as a mechanical or electrical issue.

Business Interruption Insurance: Financial compensation for income lost (including overhead costs) during the time it takes to restore business operations following an unforeseen event.

Restaurant Insurance Requirements

Who needs Restaurant Insurance?

If you serve or sell any form of food or drink, you should consider protecting your business with a restaurant insurance policy package.

Some of our clients in the food services industry include:

  • Nightclubs and Bars
  • Takeout and Delivery Companies
  • Caterering Companies
  • Cafes and Coffee Shops
  • Food Trucks
Restaurant Insurance Costs

What is the cost of Restaurant Insurance?

We’ve partnered with over fifty insurance providers to offer you different options that suit your business needs at the best price.

When you fill out our online application, we will ask some questions about your business to help better understand your needs.

The following factors are taken into consideration when determining the best policy options for you: 

  • Years of Experience 
  • Business Size and Location
  • Annual and Projected Gross Revenue
  • Number of Employees
  • Previous Insurance Claims

Getting insured is quick and easy!

If restaurant insurance is what you need, request a free quote now

Common scenarios where Restaurant Insurance is useful

customer falls in restaurant

Problem: A customer slips on a spilled drink and injures their wrist.

Outcome: The customer sucessfully sues your for bodily injury. Your Commercial General Liability (CGL) policy covers both the legal fees and medical expenses, totaling $7,500.

restaurant guests negligence

Problem: Following a kitchen fire, you have to temporarily close your restaurant during repairs.

Outcome: Your Commercial Property Insurance covers the cost to restore the kitchen and your Business Interruption Insurance covers the income lost during the time you were closed, in addition to your staff’s wages, totaling $55,000.

Salad gone bad

Problem: A power surge at your restaurant causes the refrigerator system to shut down, spoiling all of the produce.

Outcome: Your Equipment Breakdown Insurance covers the cost to repair the refrigerator system and replace the produce, totaling $24,000. 

Frequently Asked Questions about Restaurant Insurance

Is liquor liability an important coverage for my restaurant?

If you serve alcohol at your restaurant, you may consider adding liquor liability to your insurance policy. You may be held liable if you serve alcohol to a customer who causes an accident and the alcohol is deemed to be a contributing factor in the incident. Restaurant employees are also required to ensure that they do not serve alcohol beyond the point of intoxication, which is an extremely difficult requirement to keep track of.

Do I need equipment breakdown coverage?

Yes. This is an extremely important coverage for restaurant owners. It protects your business from cases of mechanical and electrical breakdown of major pieces of equipment (e.g., boilers, coolers, refrigerators, air conditioners). The policy covers the repair or replacement of the equipment, and there is also a limit associated with food/drink spoilage. Note that equipment breakdown is not included under property coverage.

Are employee theft and regular theft covered under Crime Insurance?

Crime Insurance protects your business from employee theft including stolen cash and credit card forgery as well as loss of money and securities inside and outside of the premises. Regular theft, however, is included under the property portion of a policy. Ensure that you have both added to your Restaurant Insurance policy.

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