What Kind of Insurance Does a Restaurant Need?

Canadian Restaurant Insurance Explained

In Canada, all restaurants must carry business insurance. Restaurant insurance coverage will be of great value if the restaurant sustains damage during a natural disaster or fire. Without coverage, the restaurant owner will be forced to pay out-of-pocket to cover the damage. And, this is not to mention the health care costs and lost wages of employees and customers who sustain injuries due to those mishaps.

Risks Restaurants Face Daily

Like any type of business, restaurants face a broad range of risks on a daily basis. These risks include:

  • Grease fires
  • Food poisoning claims
  • Over serving alcohol claims
  • Third-party on-site accident claims
  • Product liability claims
  • Employee dishonesty
  • Natural disasters

All of these risks are covered under business insurance. However, the types of coverages needed will depend on the risk exposures and the owner’s preferences. For example, one owner may determine that natural disaster insurance is unnecessary for his/her restaurant. So, the customized policy will not cover damage caused by natural disasters.

You Can Never Have ‘Too’ Much Insurance

Many owners are under the impression that too much insurance is a waste. This is a major misconception because you can never have too much coverage. In this case, it is better to have ample coverage even if you believe your restaurant is not at risk of some of the things that are covered under the policy.

Right Types Of Coverage

While there is no such thing as too much insurance, it is very important to carry the right types of coverage. Without the right types of coverage, you will be at risk of a huge monetary loss. This especially true if something happens and your insurance policy does not cover the expenses. All restaurants need several types of coverage, including:

  • Worker’s Compensation
  • Business Interruption Insurance
  • Liquor Liability Insurance
  • General Liability Insurance
  • Food Contamination Insurance
  • Property Insurance

Another type of insurance that you will need to carry if your restaurant provides delivery services is Commercial Auto Insurance. This policy covers employees and all the company vehicles, regardless if they are owned outright, leased, or rented.

Cost Of Restaurant Insurance

The cost of restaurant insurance will vary depending on several factors. These factors include risk exposures, location, deductible amount, and services offered. In most cases, owners will choose a customized insurance policy for their restaurants. This way, they can opt-in and -out of different types of coverages at will. A customized policy is always going to be your best option. But, it is still crucial to work with your insurer to ensure you build a policy that will cover every potential risk exposure.

Obtain A Free Quote

The best way to ensure you get the best deal on your restaurant insurance policy is to conduct a price comparison. This is a process that is offered by most insurers. You simply input the requested information in the quote form while being as honest and accurate as possible. Once you submit the form, it will only take a few seconds or minutes for the results to be available.

The results will show several insurers and the price quotes for the type of insurance you have requested. You can choose from these options but keep in mind that the lowest price quote is not always the best. Instead of making a rash decision, you should access each option carefully. Base your decision on several factors, including coverage types and deductible amount.

Depending on your finances, you may find it more feasible to choose a policy with a zero to $500 deductible. But, before you choose such a low deductible, you need to know that the lower the deductible the higher the premium.

You can also obtain a free insurance quote via phone or in-person at any local insurance company. This is the best way to find the best deal on restaurant insurance. It will also be in the best interest of your business to work with an insurance agent that is familiar with restaurant insurance.


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