Did you know that Toronto is the most diverse city in the world? That means plenty of opportunities for you to shine as a restaurant, bar, or fancy nightclub owner.
If you are a restaurant, bar, or nightclub owner, it is important to make sure that you have the right insurance in place. The requirements for restaurant insurance vary from province to province, so it is important to research and find out what type of coverage you need.
In this blog post, we will discuss the basic requirements for restaurant insurance and provide tips on choosing the right policy for your business.
Liquor Liability Insurance
If you serve alcohol at your restaurant, bar, or nightclub, you will need to have liquor liability insurance. This type of coverage will protect you if a patron becomes intoxicated and causes property damage or personal injury. Most provinces require this type of coverage, so be sure to check with your local laws.
Requirements for Liquor Liability Insurance
In order to qualify for liquor liability insurance, you must have a valid liquor license. The amount of coverage you need will depend on the type of business you have and the size of your premises.
You will also need to prove that you have taken steps to prevent intoxication, such as serving food with alcohol and having a designated driver program.
Additionally, your servers will need to have Smart Serve certification.
Another type of insurance that is important for restaurants, bars, and nightclubs is property insurance. This coverage will protect your business if a fire, theft, or another type of damage occurs.
Requirements for Property Insurance
To qualify for property insurance, you must have a valid business license. The amount of coverage you need will depend on the value of your property and the type of business you have.
You will also need to prove that your property is up to code and that you have taken steps to protect it, such as installing security systems and alarms.
Business Interruption Insurance
Another important coverage for restaurants is business interruption insurance. This type of insurance will reimburse you for lost income if your business is forced to close due to a covered event, such as a fire.
Requirements for Business Interruption Insurance
The requirements for business interruption insurance are similar to those for property insurance. In addition, you must have a valid business license, and the amount of coverage you need will depend on the value of your property and the type of business you have.
Product Liability Insurance
You will also need product liability insurance if you sell food or drinks at your restaurant, bar, or nightclub. This type of coverage will protect you if a customer becomes ill or injured after consuming your products.
These are just a few types of insurance you should consider for your restaurant, bar, or nightclub. Be sure to speak with an experienced broker to discuss your specific needs.
Requirements for Product Liability Insurance
Much like general and business insurance, you will also need a business license for product liability insurance.
However, to qualify for product liability insurance, you will also need to adhere to the food safety standards of your local area.
In Ontario, the food safety standards include:
- Certified Food Handlers Course
- Grease trap
- Proper ventilation
- Monitored temperatures
- And more
Make sure you check your local regulations for food safety standards.
Premises Liability Insurance
In addition to the types of insurance mentioned above, you will also need premises liability insurance. This type of coverage will protect you if a patron is injured on your property.
Requirements for Premises Liability Insurance
Of course, with this type of insurance, you will need everything up to code.
However, you will also need to provide the proper safety measures for your guests.
- Warning signs
- Proper lighting
- Fenced in areas
- And more
Depending on your business, there may be other insurance requirements. Be sure to speak with your broker to ensure you have the coverage you need.
What Insurance Is Required in Ontario?
Looking at this long list, you might become a bit discouraged by the amount of work you will need to put into your business. Of course, adhering to the codes and regulations of your local government is a must, but are all of these insurance policies necessary?
The truth is, some of them are mandatory while others are not. The types of insurance that are generally required in Ontario include:
- Worker’s Compensation
- Business Interruption Insurance
- Liquor Liability Insurance
- General Liability Insurance
- Product Liability Insurance
- Property Insurance
As you can see, there are quite a few insurance policies you will need to take out for your restaurant, bar, or nightclub.
While it may seem like a lot of work, these insurance policies will protect you and your business in an accident or disaster.
How to Lower the Costs of Restaurant Insurance
Now that you know the types of insurance you need for your restaurant, bar, or nightclub, you might be wondering how you can lower the costs. The good news is that there are a few things you can do to lower your insurance premiums.
Here are a few tips:
Bundle your insurance policies: Many insurance companies will offer a discount if you bundle your policies together. This means you will have one policy for your property, liability, and product insurance.
Increase your deductible: The higher your deductible is, the lower your monthly premium will be. However, you need to be careful with this one. Make sure you have enough money set aside if you have to make a claim.
Choose James Inwood: James Inwood understands the specific needs of restaurants, bars, and nightclubs. As a result, we can help you find the right insurance policy for your business at the right price.
The Requirements for Restaurant Bar and Nightclub Insurance: Get Started Today
There you have it, a quick guide to the requirements for restaurant, bar, and nightclub insurance. Be sure to speak with an experienced broker to discuss your option!
Get in touch with us today to learn more about our restaurant insurance policies or get a free quote. We would be happy to answer any questions you have!
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.