The insurance review should follow the restaurant’s operation
Seating capacity, cuisine, cooking methods, alcohol sales, delivery, catering, entertainment and operating hours all affect risk. A coffee shop without frying faces a different property exposure from a late-night restaurant with deep fryers, a patio and licensed events.
Tell the broker about every revenue stream and service. Insurer acceptance can change when takeout becomes delivery, a dining room adds live music or the business begins catering off premises.
Coverage areas to bring together
A restaurant program may include:
- Commercial property for tenant improvements, equipment, stock and contents
- Commercial general liability for covered guest injury and property-damage allegations
- Product liability for food and beverages sold
- Liquor liability when alcohol is sold, served or supplied
- Equipment breakdown for insured mechanical or electrical failure
- Crime, cyber and employment-related coverage where appropriate
- Business interruption insurance following a covered loss
Review sewer backup, overland water, food spoilage, refrigeration, glass, signs, outdoor property and property belonging to others.
Fire, food safety and maintenance affect resilience
Ontario’s Food Premises Regulation addresses sanitation, equipment, ventilation and pest-control requirements. Cooking protection, hood and duct cleaning, suppression-system inspections, grease handling and refrigeration logs should be documented. The applicable fire, public-health and building requirements remain separate from insurance.
Alcohol and events change the exposure
Ontario’s Liquor Licence and Control Act establishes the province’s licensing and permit framework for selling and serving liquor. Confirm the licence, endorsement or permit that applies, server training and any conditions with the Alcohol and Gaming Commission of Ontario. Give the broker alcohol sales, hours, entertainment, security and prior infractions. Also disclose festivals, catering and private events away from the restaurant.
Plan for interruption, not only repairs
A covered fire or equipment loss can close the premises while rent, payroll and financing continue. Estimate how long rebuilding, permits, equipment replacement and inspections could take. Review extra expense, ordinary payroll, food spoilage and dependency on key suppliers under the offered wording.
Information to prepare
Bring the lease, annual sales split by food, alcohol, delivery and catering, seating, hours, equipment values, licences, inspection history and loss runs. Contact Westoak when opening, renovating, adding a patio or materially changing the menu or service model.