Restaurant Insurance

Eating out is a nice treat. But while customers get to kick back and relax as they wait for their meal, there’s plenty going on behind the scenes at any restaurant that you, as the owner, need to worry about. Operating a food services business comes with a unique set of risks. Our insurance solutions for restaurants are designed to deal with those risks.

We offer solutions for:

Cafés and coffee shops

Family dining restaurants

Quick services restaurants

Fine dining restaurants

  • Cafés and coffee shops
  • Family dining restaurants
  • Quick services restaurants
  • Fine dining restaurants

Why restaurant owners trust us

Federated Insurance has been protecting Canadian businesses of all sizes for over 100 years. After working with both franchise and independent restaurant operators, we understand the risks you’re exposed to every day.

So whether you run a fine dining restaurant, a quick service location, or a coffee shop, we’re here to help. Take advantage of our industry expertise to get a tailored and comprehensive commercial insurance solution designed specifically for your business.

At Federated Insurance, we provide:

  • Customized insurance solutions designed for restaurants
  • Dedicated advisors who work with you directly
  • Expanded coverage options
  • Flexible payment and deductible options
  • Quick, no-hassle renewals

Common risks restaurant owners face

With so much going on behind the scenes at restaurants, owners have a great deal to keep in mind. It’s important to be aware of the risks you face, and take the right steps to mitigate them. The following are some of the key areas of risk restaurant owners should be aware of:

Fire

Whether fueled by natural gas, propane, electricity, or wood, many of the appliances in restaurant’s kitchens utilize heat. This means they can lead to dangerous (and costly) fire outbreaks. Federated Insurance’s internal claims data found that fires are the sixth most prevalent risk for restaurants across Canada and they tend to be the most severe claim restaurants can have. The data found that the average severity of a restaurant fire claim is around $90,000.*

Premises

Liability is the most prevalent risk in restaurants with slips and falls ranking number one in reported cases of liability, especially on Tuesdays. According to our internal claims data, most slip and fall accidents in restaurants happen on Tuesdays. The average cost of this type of claim is $6,500.* In order to combat this, it’s important to employ certain safety practices both inside and outside of the building, including cleaning food and beverage spills immediately and marking all elevation changes with yellow paint.

Crime

Breaking and entering is the third most common claim for restaurants in Canada, according to our internal claims data, with the average loss at about $8,000.* But it’s not the only type of crime restaurant owners should be aware of. Restaurateurs should also work to prevent employee theft. It’s important to implement measures to prevent any type of crime including a pre-employment screening process, surveillance cameras, and physical barriers.

Alcohol

There are always risks when alcohol is involved, which is why liquor service is highly regulated. Regulations are in place to ensure underage patrons are not served, to ensure intoxicated customers are not served, and to protect the serving establishment from situations that could arise from either of these situations. Most provinces have mandatory responsible service programs for employees who handle liquor. It’s important for owners to ensure that each employee has completed the mandatory responsible service programs before they start working at their establishment.

Food

There’s more risk surrounding food than one might think. While food poisoning immediately jumps to mind, people don’t tend to think about the risk of food items leading to customers breaking or chipping their teeth. In fact, broken teeth as a result of food consumed in a restaurant was the number one food-related claim Federated recieved.*

Cyber

As the world relies more and more on technology, the restaurant industry has been too. But with that reliance, new risks have presented themselves. To prevent cyber-attacks, steps can be taken including making backup copies of important business data and staying up to date with software.

*Statistics are reflective of Federated Insurance’s internal claims data from 2017.

A cook book lining to downloading a white paper about risks restaurant owners face

Do you want to learn more about risks restaurant owners face and the appropriate steps to take against them?

Risk management tips for restaurant owners

Tip #1:
Ensure regular housekeeping duties are completed, maintaining the building both inside and outside. This includes removing and depositing garbage and recyclable items in the proper receptacles.
Tip #2:
Check tables, chairs, booths, stools and counters regularly for broken parts, splinters, rough or sharp edges as well as protruding nails or screws. Make needed repairs immediately.
Tip #3:
A maintenance program that is proactive about identifying and preventing slip and fall hazards can help protect your patrons and your business.
Tip #4:
In the event that a slip and fall incident is reported, an Accident Report Form should be available on site and completed by the claimant and/or any available witnesses outlining the details of the accident. Taking photos of the conditions at the scene of the accident, as well as the footwear the person was wearing on that day are also important pieces of information to collect.
Tip #5:
If night deposits are used, ensure that more than one employee brings the deposit to the bank. Deposits should not be done at the same time each night and different routes should be taken to help deter theft.
Tip #6:
Ensure sprinkler systems, portable fire extinguishers and fire detection systems are maintained on a regular basis and inspected regularly.
Tip #7:
Keep all outdoor areas, including your parking lot, sidewalks and entrances, overhead signs, canopies and awnings in good condition and free of obstacles.

Risk management tips for restaurant owners

Tip #1:
Ensure regular housekeeping duties are completed, maintaining the building both inside and outside. This includes removing and depositing garbage and recyclable items in the proper receptacles.
Tip #2:
Check tables, chairs, booths, stools and counters regularly for broken parts, splinters, rough or sharp edges as well as protruding nails or screws. Make needed repairs immediately.
Tip #3:
A maintenance program that is proactive about identifying and preventing slip and fall hazards can help protect your patrons and your business.
Tip #4:
In the event that a slip and fall incident is reported, an Accident Report Form should be available on site and completed by the claimant and/or any available witnesses outlining the details of the accident. Taking photos of the conditions at the scene of the accident, as well as the footwear the person was wearing on that day are also important pieces of information to collect.
Tip #5:
If night deposits are used, ensure that more than one employee brings the deposit to the bank. Deposits should not be done at the same time each night and different routes should be taken to help deter theft.
Tip #6:
Ensure sprinkler systems, portable fire extinguishers and fire detection systems are maintained on a regular basis and inspected regularly.
Tip #7:
Keep all outdoor areas, including your parking lot, sidewalks and entrances, overhead signs, canopies and awnings in good condition and free of obstacles.

Restaurant insurance coverages

Our toolbox is filled with options designed to ensure that your restaurant is properly protected:

Liability:

We cover your owned and non-owned liability as well as innkeepers liability and food poisoning and infectious disease coverage. So, for instance, if someone slips or trips on your property, you’re protected.

Business Interruption:

You can take advantage of our business interruption insurance to help protect your business from a loss of income. Say your front door is vandalized, preventing customers from entering your restaurant, and you have to close down for a few days to fix it. This coverage will help with your loss of net income, and allow you to continue paying your normal operating expenses to help expedite your return to business!

Cyber:

We’ll help to keep your business cyber safe with costs coverage for data recovery, customer breach communications and e-commerce threats. As a restaurant owner, your business likely processes numerous credit card transactions every day. If someone worked to steal your customers credit card information or their personal information from your system, this coverage would help you deal with that.

Company Vehicles:

We’ll make sure you have the right coverage for all of your company vehicles, whether you have just one or a whole fleet. Standard commercial auto insurance can also provide replacement car coverage, if you must rent a temporary car for day-to-day operations after an accident.

Commercial Property:

We cover your building, equipment, furnishings, inventory and supplies with specific protection for flood, earthquake, property away from scheduled locations and enhanced wine valuation. So, for example, if you experience a flood which damages your property, we may help cover the repair costs.

Crime:

We offer insurance coverage to help protect you from employee dishonesty, credit card forgery and other types of theft by employees and others. Say you leave your restaurant for the night and return the next morning to find the front window broken and the property vandalized. Our coverage will help with the costs associated with that.

Employees:

Solutions are available to help protect your employees and their families with group benefits and accidental death and dismemberment protection.

Work with us directly

Federated Insurance works directly with you. Whatever your needs, our team of industry-trained experts will ensure that your restaurant is properly protected.

We take the time to understand your business today and in the future, so that as your business evolves, we’ll be there to help ensure that your coverage is aligned to meet the needs of your operations.

Value-added services for your restaurant

Once you become a customer, you’ll have access to an array of value-added services for your restaurant that include:

Superior claims handling

Our claims professionals are skilled in handling claims in the food service industry. They’re available 24/7 to resolve your claim and get your restaurant back up and running as quickly as possible.

Dedicated advisors

Our Commercial Insurance Specialists have the expert knowledge and experience required to develop tailored insurance programs to fit the unique needs of your restaurant, while also providing expert advice and support along the way.

Loss prevention expertise

Access to our highly-trained loss prevention consultants to answer your questions and provide you and your employees with valuable safety advice.

Safety programs

Tools to help you create, implement and maintain safety programs, with a focus on identifying, communicating and mitigating risks.

Trauma assistance

Confidential one-on-one counselling services to help you through traumatic loss.

Superior claims handling: Our claims professionals are skilled in handling claims in the food service industry. They’re available 24/7 to resolve your claim and get your restaurant back up and running as quickly as possible.

Dedicated advisors: Our Commercial Insurance Specialists have the expert knowledge and experience required to develop tailored insurance programs to fit the unique needs of your restaurant, while also providing expert advice and support along the way.

Loss prevention expertise: Access to our highly-trained loss prevention consultants to answer your questions and provide you and your employees with valuable safety advice.

Safety programs: Tools to help you create, implement and maintain safety programs, with a focus on identifying, communicating and mitigating risks.

Trauma assistance: Confidential one-on-one counselling services to help you through traumatic loss.

Latest blog posts for restaurants

Check out our latest blog posts for some tips on business, customer, employee and operational safety for restaurants: