People love to drink coffee when the weather is cold. People also love to drink coffee and debate issues with others. This makes Canada the perfect breeding ground for coffee shops and cafes. Given Canadian’s propensity for drinking coffee and debating topics, there is a huge potential for major earnings in the area. The only problem is all the risks that come associated with going into the industry. You might not realize it, but the risks are immense when it comes to the cafe business. What are these risks and how can you protect yourself against them?
The Risks Of A Cafe
There is no denying that opening a cafe in Canada could be lucrative for the right individual. Of course, there are risks associated with such businesses as well. One of those risks and probably the biggest one is a lawsuit. In fact, a cafe can be sued over a variety of events and claims. Whether you are responsible for the claims or not, just the fact that the case goes to court could hurt your business. Not only will it hurt your name, but it’s hurt you financially. Every time your lawyer appears in court, hiring a lawyer, getting advice from your lawyer, and deposition fees, these are all going to cost you.
And, they’ll end up costing you thousands. Luckily, there are policies that can protect in these specific situations. The trick is finding the policies that you need to protect against such risks. Some of the risks that cafes are exposed to are slip and falls, damaged customer property, injured customers, slander, libel, liquor liability cases, and more. What policies protect you in these situations?
Bundling General Liability With Business Owner’s Policy
Any good foundation for a business insurance package starts with the business owner’s policy and general liability insurance. Why? Because these policies bundled together will not only protect you from slip and falls, but they’ll protect you from other customer-related injuries, damaged business property, business interruptions, libel, slander, and damaged customer property. These policies will not only cover your medical and damage-related expenses, but they’ll cover any court-related costs.
If a customer wants to sue you after falling in your place of business, they have the legal right. If a customer is burnt by hot coffee in your shop, they have the legal right to sue. You’d be surprised at all the events that a customer can sue over. And unfortunate as it might seem, there are people out there that take advantage of these situations whenever and wherever they can.
While you might not even be at fault, these events can end up costing you thousands. Thousands that you likely don’t have. Luckily, these are thousands that you won’t need to spend when you bundle general liability and business owner’s policy.
Workers’ Compensation Insurance
If you are going to bring on employees in Canada, you are going to be required by law to protect them with what is known as workers’ compensation insurance. Even if this insurance wasn’t required, you’d want to invest. Why? Because it not only protects your employees, but it protects you from your employees. You might be wondering why you need protection from your employees, but there are plenty of situations.
Even in the cafe business, there is a real risk for employees to get injured. Employees can slip and fall while at work just as a customer can. Employees can get burnt with coffee just like a customer could. Even the slightest movement could end up in an injured back. Whatever the situation, all of these events are going to lead to medical expenses and time off work. Medical expenses that you’ll have to cover and lost wages that you’ll have to pay for.
This is exactly what workers’ comp was designed for. It’ll cover the medical-related expenses with such incidents. Not only will it do this, but it’ll pay for the rehab-related costs to help get the customer back to work. More importantly, it’ll protect you in the event that the employee wants to sue. And, they oftentimes do, as unfortunate as it might seem. Once again, even an unfounded lawsuit could end up costing you thousands in profits. Luckily, that won’t have to be the case with workers comp insurance because it’ll cover all this, Heck, with providers like ProfessionalsCoverage, these policies can even pay for some or all of the settlement.
Commercial Auto Insurance
It might not be often, but as a cafe owner, you’ll find yourself on the road from time to time. You might even find yourself on the road more often than not if you choose to offer a delivery service. Heck, with COVID out there, you might not have any choice but to deliver. Whatever the situation is, commercial auto insurance will be pertinent. If you are on the road, operating your business, and get into an accident, you’ll need commercial auto insurance. Regular vehicular insurance won’t provide the protection that you need if there is an accident.
Not only this, but it won’t protect your employees either. Only commercial auto insurance will offer the protection that is needed in these specific situations. It, just like the other policies, can provide a variety of unique protections. It can protect you from the medical expenses, any property that is damaged during the incident, and any court-related costs that might ensue.
Liquor Liability Insurance
Sometimes cafes also like to serve liquor and alcohol. There is nothing wrong with this, as it opens you and your business up to a whole new client base. People like to drink and let loose some and there is nothing wrong with this. The only problem is, some people don’t know when to stop or take it too far. When this happens, it can potentially hurt you and your business. For instance, if you serve a customer liquor, he gets drunk and destroys property on his way home, you can be blamed for the incident because you served the individual alcohol.
As unfathomable as it might seem, these are situations that happen all the time. And, just like the other incidents mentioned here, they usually end up in lawsuits. Luckily, this is where liquor liability insurance helps. It’ll pay for the injuries caused by the intoxicated patron. It also pays for any property damage caused by intoxicated patrons. What’s even more important is that it’ll protect you in the event that the injured parties want to sue.
These policies will cover your court costs, hire your lawyer, and even cover the settlement if you are found liable by the Canadian court system.
How Much These Policies Cost
You can clearly see by now just how pertinent these policies are. The real question comes down to how much these policies will cost your business. Regardless, you don’t want to skimp. That being said, you need to be aware of the fact that food business insurance costs can be tricky. This is because each different provider bases its rates on specific factors. For instance, a provider like ProfessionalsCoverage might base their rates on the number of employees you have as well as the number of years you’ve been open.
Other providers might base their rates on the types of services that you offer coupled with the physical location of your cafe. Whatever the situation, this is why when getting quotes, you’ll notice that different providers charge different rates for the same policies. Be sure to get multiple quotes so that you can find the best rates possible, but just remember, the cheapest isn’t always the best route.
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Other Types of Food Business Insurance We Provide:
If your business is not mentioned below, have no worries. Our insurance markets can provide liability coverage for the majority of food related industries.