What Is Restaurant Insurance A Guide For Restaurants In The Northwest Territories

What Is Restaurant Insurance? A Guide For Restaurants In The Northwest Territories

All businesses need insurance, and there’s no one-size-fits-all insurance plan for any business. Restaurants, in particular, need all kinds of insurance to protect their buildings, staff, and diners. 


Whether you’ve got a restaurant in Yellowknife, Hay River, Inuvik, or anywhere else in the Northwest Territories, this guide will help keep you protected. 


Restaurant Insurance Coverage: The Types of Insurance You’ll Need


Commercial General Liability (CGL) Insurance


Commercial general liability (CGL) insurance is one of the three major types of insurance you’ll need to purchase for your business, along with property insurance and auto insurance.


CGL insurance protects you from liability claims—if a person or property is damaged as a result of your business operations, CGL insurance can help protect you. From the slip-and-trip accidents that are all too common in the winter to damage caused by coffee that was served too hot, CGL insurance can help pay for court fees and lawyers and even pay damages levied in court if your business is found guilty. 


Commercial Property Insurance


Commercial property insurance is another one of the most essential types of business insurance: It protects your property, including your building, its appliances and fixtures, your food, utensils, cookware, and other items essential to running your restaurant. 


When a property is damaged due to risks (like fire or a storm) covered by your insurance, your property insurance policy can kick in, providing you with the money you need to repair or replace the damaged property. 


Business Interruption Insurance


  • Business interruption insurance is insurance coverage that replaces income lost if business is halted due to direct physical loss or damage, such as might be caused by a fire or a natural disaster.
  • Business interruption coverage includes business income coverage, extra expense coverage, contingent business interruption coverage, and/or civil authority coverage.
  • This type of insurance also covers operating expenses, a move to a temporary location if necessary, payroll, taxes, and loan payments.
  • In rare cases, business interruption insurance can apply if a civil authority shuts down a business due to physical damage to a nearby business, resulting in a loss for a firm.
  • Standard business interruption insurance does not reimburse policyholders if the business is closed due to a pandemic. Even some all-risk insurance plans have specific exclusions for losses due to viruses or bacteria.

Commercial Auto Insurance


Commercial auto insurance isn’t necessary for all restaurants, but it’s an essential part of restaurant insurance if you plan on doing deliveries. Commercial auto insurance includes liability insurance, accident benefits, and more—it’s an essential form of small business insurance if you need to deliver food to your customers. 


Liquor Liability Insurance


Liquor liability insurance is a form of restaurant insurance that restaurant owners should consider purchasing if they serve liquor at their establishments. As a form of liability insurance, it provides coverage that supplements the coverage offered by your commercial general liability insurance, helping protect your restaurant if patrons are injured or damage property after drinking at your restaurant. 


Food Contamination Insurance


Food contamination insurance is another form of restaurant insurance that can protect the restaurant owner and staff if food becomes contaminated, and food poisoning or foodborne illnesses lead to liability claims against the restaurant. Like liquor liability insurance, it’s a type of insurance you should consider purchasing in addition to your commercial restaurant liability insurance policy. 


How Can I Reduce My Insurance Costs?


Take Precautions To Reduce Risk


Installing fire suppression devices and security alarms, limiting slip-and-fall accidents through proper snow and ice removal, and taking other steps to reduce the risk of accidents and damage can all lower your restaurant insurance costs. 


Find the Right Insurance Company


Commercial insurance coverage for restaurants will vary depending on the insurance company you choose. Different policies have different coverages—and different costs. You can often lower your monthly premium by shopping for the right company. You may also find important coverages like business interruption insurance available for less.


Here at Nation North, we find Northwest Territories insurance on your behalf—we’re insurance brokers who will sort through hundreds of policies from dozens of insurers to find the perfect match for your restaurant. Get in touch with us today!