What Kind of Restaurant Insurance Do I Need?

What Kind of Restaurant Insurance Do I Need?

November 3, 2022 / 5 mins read

Victoria is known for its many delicious restaurants and eateries, attracting both tourists and locals.

As a B.C. restaurant owner, you need to protect your investment with a restaurant insurance package that suits your dining establishment and how it operates.

Ask your Western business insurance expert about what you need in your restaurant insurance package for your Victoria restaurant or eatery.

What is restaurant insurance?

Restaurants face a variety of risks, including food poisoning, kitchen fires, on-site accident claims, employee theft, and claims of over-serving alcohol.

Restaurant insurance is designed to protect you against specific risks that come with running a restaurant, serving food and beverages, operating equipment, and accidents and injuries.

We will help tailor your insurance to your restaurant, whether you are in Victoria, Oak Bay, Saanich, Esquimalt, Fernwood, or in other neighborhoods and suburbs in the area.

What kind of restaurant insurance package do I need?

1. Commercial General Liability (CGL) Insurance: Commercial General Liability Insurance covers claims such as bodily injury such as a customer who slips or falls, medical costs, property damage, and slander and false advertising related to restaurant operations.

Without commercial liability insurance, you would be responsible for paying any liability costs out of your own pocket as the restaurant owner. It’s important to have enough coverage to protect your restaurant. You can always increase your CGL coverage.

Ask your Western business insurance expert, what level of CGL coverage your Victoria restaurant or eatery needs.

2. Commercial Property Insurance: Many restaurant claims are due to water and fire damage. Commercial Property Insurance covers both these damages and covers theft and vandalism.

As a restaurant owner, it’s critical to insure your contents, stock, and equipment to their full value under commercial property insurance to make sure you are covered in the event of a claim.

3. Liquor Liability Insurance: If your Victoria restaurant or eatery sells, serves, or distributes alcohol, you could be held liable if an intoxicated person claims bodily image or property damage after serving them.

Liquor Liability Insurance provides coverage for bodily injury or property damage if your business has been found legally liable as a contributor to a person’s intoxication. This type of insurance covers such things as settlements, legal costs, medical bills, and repair costs for property damage.

Be sure to discuss your responsibilities as a restaurant owner serving alcohol with your Western business insurance expert. We can guide you to make sure you get the coverage you need.

4. Product Liability Insurance: This type of coverage protects you against claims that allege third-party property damage or bodily injury caused by a product you make, distribute, or sell, which includes the food you make, serve, and sell. If your food makes one of your customers sick or they have an allergic reaction, this type of insurance can cover legal and medical costs if you are sued.

5. Equipment Breakdown Insurance: Equipment Breakdown Insurance covers the costs to repair or replace professional equipment, for example in your kitchen, that is broken or damaged due to a mechanical or electrical issue.

6. Business Interruption Insurance: If your Victoria restaurant or eatery is forced to close due to an insured loss, your business interruption insurance will help pay for your business expenses. It helps cover the net income you are missing out on while you take steps to reopen.

It can help with expenses such as: Payroll, rent, utilities, property taxes, alarm monitoring and the relocation of your business.

Not all business interruption insurance is the same. Ask your Western business insurance expert how this type of insurance will benefit your restaurant. It can mean the difference between reopening and going out of business.

7. Commercial Auto Insurance: If you have a business car, truck, or van that you use for your Victoria restaurant, it needs commercial coverage as part of your restaurant insurance package. Your personal car or truck insurance usually won’t cover your business.

8. Cyber Insurance: Your restaurant has credit card transaction information and customer relationship management (CRM) that makes you vulnerable to a cyberattack, data breach, phishing, or ransomware attack. This type of insurance can help recover stolen data and repair damaged computers and networks and it can help restore stolen customer and employee identities. Depending on the size of the breach and the information that was taken, the customers who are affected can sue your business for damages.

How much will my insurance package cost?

Restaurants are not all the same in size or what they serve. Your insurance premiums and coverages will be unique to your restaurant.

Factors when calculating your premium can include:

  • Percentage of alcohol sales relative to total gross sales at your restaurant will be an important factor
  • Type of restaurant
  • The size of your restaurant and number of staff
  • Annual and projected revenue
  • Claims history
  • The coverage limits you need

Your Western insurance expert will go over in detail what coverages your restaurant needs.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your Victoria restaurant or eatery the right restaurant insurance package. Our experts are available now to help you navigate the business insurance journey to protect your restaurant or eatery.

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