Restaurant Insurance: A Guide For Business Owners

Did you know that most injuries in restaurants happen in the kitchen? That is no surprise, considering the dangers involved with the job.

However, if you’re a business owner, then you know that insurance is necessary to protect you, your employees, and your customers. No matter what industry you’re in, there’s always the risk of something going wrong and costing you a lot of money.

That’s why it’s important to have Restaurant Insurance – to protect yourself from potential financial losses.

In this blog post, we’ll discuss some of the different types of coverage that are available for restaurants, as well as how James Inwood can help you get the best rates possible!

What Is Restaurant Insurance and What Does It Cover?

Restaurant insurance is a type of business insurance that helps protect restaurants from financial loss in the event of property damage, liability claims, or other unforeseen circumstances.

We will discuss some of the most common coverages below! However, if you are looking for something specific, feel free to call James at 647-966-7093.

Property Damage Coverage

Property damage can occur any day of the week, which is why it is so important to protect your restaurant from financial loss in the event of damage to your property.

It can also cover the cost of repairs or replacement of damaged and stolen equipment. 

General Liability Coverage

This type of coverage can help protect your restaurant from financial liability. Personal injuries of customers and employees are common in lawsuit cases. 

As we know, lawsuits can cause a lot of debt in lawyer fees, compensation, and other costs. 

It’s important to note that liability coverage does not cover intentional acts, such as assault or battery.

Liquor Liability Coverage

If your restaurant serves alcohol, then you may want to consider purchasing liquor liability coverage.

This type of coverage can help protect your restaurant from financial liability if someone is injured or damages property while intoxicated on alcohol that was served at your establishment.

Business Interruption Coverage

COVID-19 brought on a lot of interruptions, where restaurants were told to shut down without any notice.

This type of coverage can help protect your restaurant from financial loss if you have to temporarily close due to a covered event, such as a fire or severe weather.

It can also cover the cost of lost income if you’re unable to open due to damage to your property.

Workers’ Compensation Coverage

This type of coverage is typically required by law if you have employees.

It can help cover the cost of medical expenses and lost wages if an employee sustains an injury while at work. 

Common Risks in the Restaurant Industry

There are many risks that restaurant owners face on a daily basis, but some of the most common are discussed below.

Let’s take a look!

Foodborne Illness

Restaurant workers handle food all day, which means there’s a risk of contamination and foodborne illness.

While the province has strict rules on food safety, things can still go wrong from time to time. This is why it’s important to have proper food safety procedures in place.

Slip and Fall Accidents

Restaurant floors can get slippery, especially in the kitchen area. This increases the risk of slip and fall accidents.

Workers’ comp can cover any accidents that involve your employees. However, if a customer sustains an injury in your establishment, you will want coverage for that as well. 

Employee Injury

Restaurant employees are at a higher risk of injury due to the nature of their job. Whether it’s a slip and fall in the kitchen or a cut while chopping vegetables, there’s always the potential for an injury to occur.

Fires and Damages

Restaurants are also at risk of fires and damage from severe weather, such as thunderstorms and blizzards. 

However, that is not the only event that can cause a fire. Faulty equipment, unsafe practices, or just simple accidents can cause fires, too. 

Alcohol Liabilities

Restaurants that serve alcohol need to adhere to a strict set of rules. Servers should have Smart Serve, your restaurant needs to be licensed, and you need to have the proper insurance coverage in place.

This is why it’s important to have liquor liability insurance in place, which can help cover the cost of these claims.

How Much Does Restaurant Insurance Cost, and How Can You Save Money on Your Policy?

The cost of restaurant insurance depends on a number of factors, including the size and location of your restaurant, the types of coverage you need, and the amount of coverage you want.

However, there are some ways that you can save money on your policy.

One way to save money is to bundle your restaurant insurance to include all the types of insurance you may need, such as business insurance or property insurance.

Another way to save money is to raise your deductible. This means that you would pay more out-of-pocket if you had to make a claim, but it would lower your monthly premium.

The Current State of Restaurant Insurance in Ontario

The restaurant industry is currently facing a number of challenges, including rising costs, increased competition, and changing consumer habits.

As a result of these challenges, many restaurants are struggling to stay afloat.

Restaurant insurance, unfortunately, is also seeing a change in the industry. Due to the many closures during the pandemic, we are seeing an increase in premiums, which is putting even more strain on businesses.

Additionally, many insurance companies are switching to an online model, which can be difficult for restaurants to keep up with.

How Do You Choose the Right Insurance Company for Your Business?

When you’re looking for Restaurant Insurance, it’s important to choose an insurance company that has experience in the industry and a good reputation.

You should also make sure that the company is licensed to sell Restaurant Insurance in your province.

Another important factor to consider is the financial stability of the insurance company. You want to make sure that the company has the financial resources to pay out claims if you need to make one.

What Insurance Does a Restaurant Need?

Business Insurance may be mandatory for all restaurants, depending on the region you are in.

However, in Ontario, the three types of insurance that are most commonly required are General Liability Insurance, Commercial Property Insurance, and Business Interruption Insurance.

In fact, the insurance policies we mentioned above are often mandatory in most regions of Ontario. If you want to be sure, you should check with your local government to see what the specific requirements are in your area.

Restaurant Insurance is a must for any business in the food service industry. Whether you’re a small mom-and-pop shop or a large chain restaurant, you need to have this type of coverage to protect yourself from financial liability.

What Should You Do if You Experience a Loss or Liability Claim Against Your Restaurant Business?

If you experience a loss or liability claim against your restaurant business, the first thing you should do is notify your insurance company.

You will then need to provide them with all of the necessary documentation, such as police reports, medical bills, and repair estimates.

Once your insurance company has received all of the necessary information, they will begin the process of investigating the claim and determine whether or not you are covered.

If they determine that you are indeed covered, they will begin the process of reimbursing you for your losses.

When to Switch Insurance Companies

There are a few different reasons why you might want to switch insurance companies for your restaurant.

The most common reason is if you feel like you’re not getting the level of coverage you need at a price you can afford.

Another reason to switch is if your current insurance company is not meeting your expectations in terms of customer service or claims processing.

Finally, you might also want to switch if you find an insurance provider that can offer you a better deal on restaurant insurance.

How James Inwood Can Help You

James Inwood understands the challenges that restaurant owners are facing. We are here to help you get the coverage you need at a price you can afford.

We are also experienced in handling Restaurant Insurance claims and can help you through the process if you need to make a claim.

The local brokerage was established in 1991. James has proudly served the restaurant insurance needs of business owners in Oakville, Ontario for over 10 years.

As a full-service insurance broker, we are able to offer our clients a wide range of restaurant insurance options from a variety of different insurers. This means that we can find the right coverage for your specific needs at a price that fits your budget.

Restaurant Insurance: Get Coverage Today

If you’re a restaurant owner, it’s important to make sure you have the right insurance for your restaurant in place. At James Inwood, we can help you find the coverage you need at a price you can afford.

Contact us today at 647-966-7093 to learn more about our Restaurant Insurance options or request a quote here.

James Inwood is a member of Canadian Insurance Brokers Inc. CIBI operates across Canada with more than 40 licensed brokers and is completely independent so our advice is always objective. Representing 14 insurance carriers on the personal side and over 20 insurance providers on the commercial side helps give my clients clear choice and competitive pricing.

James Inwood, Insurance Broker
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