What Insurance Do B.C. Restaurants Need?

August 6, 2024

What happens if there’s a kitchen fire in your B.C. restaurant or a customer slips and falls on a wet floor? When you own a restaurant, there's a wide range of potential liabilities that could impact your business.

A restaurant insurance package tailored to your needs protects your investment in your eatery.

Here are the main types of insurance that every restaurant owner in British Columbia should consider:

Commercial general liability (CGL) insurance

CGL insurance is the cornerstone of any business insurance policy, and it's especially important for restaurants. This coverage protects against claims of bodily injury, property damage, and personal injury for your customers and your suppliers.

For example: A customer slips and falls on your B.C. restaurant’s premises or if a staff member accidentally damages a customer's property. General liability insurance can cover the associated costs.

Commercial property insurance

Commercial property insurance covers the physical assets of your restaurant, including the building, equipment, furniture, and inventory. This insurance protects against events like fire, theft, vandalism, and sever weather. Given the expensive equipment and unique decor often found in restaurants, this coverage is a must to ensure your business can recover quickly from unexpected incidents.

Business interruption insurance

Restaurants across B.C. rely heavily on consistent operations to generate revenue. If a fire, flood, or another disaster forces you to close temporarily, business interruption insurance can cover lost income, ongoing expenses, and relocation costs if necessary. This coverage is a lifesaver when unexpected events threaten your business continuity!

Product liability insurance

As a B.C. restaurant owner, you're responsible for the food and beverages you serve. Product liability insurance protects you if a customer becomes ill or injured due to food contamination or improper preparation. This coverage helps cover legal costs and compensation claims, ensuring your restaurant's reputation remains intact.

Liquor liability insurance

If your B.C. restaurant serves alcohol, Liquor liability insurance is essential. This coverage protects you against claims resulting from alcohol-related incidents, such as fights, accidents, or injuries caused by intoxicated patrons.

In the digital age, restaurants often rely on technology for reservations, payment processing, and customer communication. Cyber liability insurance helps financially protect your business from data breaches, cyberattacks, and other technology-related risks. This coverage can cover the costs of notifying customers, recovering compromised data, and defending against legal claims.

Do I need to insure my restaurant delivery drivers?

The use of personal or company-owned vehicles for business purposes introduces additional risks that standard restaurant insurance policies may not cover.

Food delivery drivers face risks associated with driving, including traffic accidents, vehicle damage, theft, and personal injury. If a driver is involved in an accident while delivering food for your restaurant, you could be held liable for damages or injuries.

B.C. businesses that use vehicles for commercial purposes must have commercial auto insurance, which provides coverage for liability, property damage, and bodily injury resulting from vehicle accidents. It can also cover damage to the insured vehicle and protect against theft or vandalism.

If your delivery drivers use their personal vehicles, consider getting non-owned auto insurance, which covers your business's liability if a driver using their own vehicle for business purposes is involved in an accident. It does not cover the driver's personal vehicle; for that, the driver should maintain their own auto insurance.