Restaurant insurance in Ontario

The Alcohol and Gaming Commission of Ontario (AGCO) issues liquor sales licences and sets the conditions you operate under: capacity, licensed areas, hours and any patio extensions. Insurers will ask what kind of licence you hold, how much of your revenue comes from alcohol and how late you serve.

Staff who sell or serve alcohol in licensed establishments are expected to complete Smart Serve, Ontario’s responsible service training. Keep a list of each staff member’s certification and the date they earned it. When we ask about your training, you can answer in minutes, and after an incident the records help show you took overservice seriously.

Liquor liability is the coverage that responds when a guest you served is involved in an accident and someone claims your business contributed by overserving. For Ontario operators with a busy bar or a late licence, it is often the single most important part of the package. Read how liquor liability for Ontario bars and dining rooms works and what limits owners typically carry.

The Workplace Safety and Insurance Board (WSIB) runs Ontario’s workplace insurance. Most restaurants with workers must register and pay premiums based on payroll. WSIB is separate from the commercial policy we place for you, and brokers do not sell it. Insurers may still ask about your WSIB status and your workplace injury record, because a kitchen with frequent burns and cuts tends to be a kitchen with other problems too.

Urban density in Toronto and other cities

A restaurant in downtown Toronto, Ottawa or Hamilton often shares walls, ductwork and plumbing with other tenants. A fire that starts next door can close your dining room, and a leak from the unit above can ruin your inventory. Shared buildings also mean leases with strict insurance clauses. Landlords commonly require $2 million to $5 million in general liability and want to be named as an additional insured. Send us the insurance section of your lease so the limits match what you signed.

High foot traffic adds liability exposure. More people at the door means more slips on wet tile, more trips on uneven sidewalks you are responsible for, and more chances for a dispute to turn into a claim.

Patio season

Patios are central to the summer economy in Toronto, Ottawa, London and cottage country towns. They also add risk. Furniture on uneven ground, heaters, umbrellas in the wind and alcohol served outdoors all create new ways for a guest to get hurt. A patio on a public sidewalk or a curb lane usually runs under a municipal permit, and the municipality may ask for proof of insurance and to be named on your certificate. Tell us about the patio, its seating and its liquor service so it is properly included, and we will issue the certificate the city needs.

Winter slip and fall

Snow and ice are behind a steady stream of claims across the province, from Thunder Bay to Windsor. Entrances, steps and parking areas that you are responsible for need to be cleared and salted, and a written log of when that happened is one of the best defences against a slip and fall claim. If you hire a snow contractor, ask for their certificate of insurance and keep it on file. Your liability cover for slips and falls responds to these claims, but a strong record makes them easier to defend.

Freezing and bursting pipes

Older buildings in many Ontario downtowns have pipes in exterior walls or unheated spaces. A deep cold snap, especially over a long weekend when the restaurant is closed, can split a pipe and flood the kitchen. Property coverage can pay for the damage, but often only if reasonable heat was maintained, so we will walk you through your policy’s freezing conditions.

Example: A café in Kingston closes for three days over the holidays. A supply line in an exterior wall freezes and bursts, flooding the back of house. Property coverage pays to dry out the space and replace damaged stock, and business interruption covers lost income during the two weeks of repairs, subject to the waiting period and the policy’s conditions on heating a vacant building.

Ontario risk	Coverage that responds
Guest injured after drinking at your bar	Liquor liability
Slip on ice at your entrance	General liability
Fire in a neighbouring unit closes you for weeks	Business interruption (check for civil authority and contingent extensions)
Walk-in cooler fails during a heat wave	Equipment breakdown and spoilage
Burst pipe floods the kitchen	Property and business interruption

If your income depends on staying open through every season, it is worth understanding how lost income is replaced after a closure. Licensed sit-down restaurants with a bar, a patio and a full kitchen carry most of these risks at once, so our page on coverage for full-service dining rooms is a good next read. If your operation is mostly a bar, see coverage for pubs and taprooms.

Fill in the form on this page or call us at (416) 346-6886. One of our brokers will ask about your AGCO licence, sales, patio and building, then take your application to insurers that suit your operation. We walk you through the options in plain language and set up the policy, and we stay with you for certificates, changes, renewals and claims. Our guide to estimated premiums can help you budget before the call.