Why Get Hospitality Insurance?
Insurance tailored for the hospitality industry protects your business from exposure to risks such as liquor liability, food contamination and forcible ejection.
Hospitality Insurance Claims Examples
Property Coverage
Incident: A fire breaks out at your restaurant overnight causing damage to your owned building, equipment and stock costing $800,000 in property damage.
Result: Your property coverage provides reimbursement for the cost to repair the building and replace the equipment and stock so that you can continue to operate as soon as possible.
Business Interruption
Incident: Your restaurant suffers an insured loss that will require 6 months to completely repair before you can operate again costing you $500,000 in lost income.
Result: The business interruption coverage within your hospitality insurance policy covers the lost income for the 6 months so that you can retain employees and pay rent while the building is being repaired.
Liquor Liability
Incident: A customer at your bar becomes intoxicated and is told they can no longer be served and must leave your establishment. They decide to drive home instead of taking a taxi even though your staff has ordered one for them. The drunk customer gets involved in an accident resulting in $200,000 in damages and names your bar as being liable because they were served the alcohol there.
Result: The liquor liability coverage on your policy pays for the legal fees associated as well as the damages suffered if found liable.
Hospitality Insurance, Explained
Who needs hospitality insurance?
The hospitality industry is a broad category that involves numerous businesses within the service industry that include food and drink, lodging, etc.
All businesses that provide these services should protect their livelihood with hospitality insurance to limit the business’ exposure to financial loss.
Why does the hospitality industry need insurance?
Businesses within the service industry have a large number of exposures they often face when doing business on a day to day basis. It is crucial to limit the risks to your business, from loss of your equipment and stock to the health and wellbeing of your customers. Personalized insurance coverage is essential to making sure that the business continues to run smoothly in the event of a loss.
What does hospitality insurance cover?
- Property Coverage – Can be broken down into more specific coverages however in general will insure property and contents that you own. Examples can be the building, equipment including leased/rented equipment, and stock.
- Business Interruption – Protects your business from financial instability by covering lost income in the event of a covered loss.
- Commercial General Liability – Protects you against third party claims of property damage or bodily injury
- Products & Completed Operations Liability – Protects you against third party claims of property damage or bodily injury that may occur due to your products or operations
- Liquor Liability – protects you against third party claims of damages or injuries when alcohol is deemed to be a contributing factor in an incident
- Boiler and Machinery – Covers the cost of repair or replacement for the sudden and accidental mechanical breakdown of your equipment
- Crime – Secures your business from financial loss either by employees or third-parties
Full List of Business Insurance Types
Why Choose Pacific Insurance?
Our staff are trained Registered Insurance Brokers of Ontario (RIBO) which is the self-regulatory body for insurance brokers in Ontario.
We have been regularly featured in the media as insurance experts and asked to speak at events like the ‘CRV Radio International’.
1 on 1 Service
Speak directly with an expert instead of dealing with a faceless call centre.
40+ Years in Business
We provide the results of a large agency while giving you the agility and service level of a boutique agency
Fluent in Many Languages
Speak to our brokers in English, Cantonese, Mandarin, French, Korean, or Hebrew.
