Question 1

Do restaurants need CGL insurance in Ontario?

Accepted Answer

Yes. CGL insurance is essential for restaurants, cafés, and food-service businesses because they combine high foot traffic, food products served to the public, and often a commercial lease that requires proof of coverage. It's usually the first insurance policy a landlord or franchisor asks for.

Question 2

How much does CGL insurance cost for a restaurant in Ontario?

Accepted Answer

Most Ontario restaurants and cafés pay $1,500 to $3,000 per year for $2 million in CGL coverage. Full-service restaurants with alcohol service, larger seating capacity, or a history of claims are typically at the higher end; small cafés and takeout counters are usually lower.

Question 3

Does CGL insurance cover food poisoning claims?

Accepted Answer

CGL includes Products Liability coverage, which responds to claims that a customer was harmed by food or a product your business served or sold — including foodborne illness claims — subject to your policy's terms and the circumstances of the claim.

Question 4

Does my restaurant's CGL policy cover liquor liability?

Accepted Answer

Not automatically. If you serve alcohol, most CGL policies require a separate Liquor Liability (Host Liquor Liability) endorsement to cover claims arising from an intoxicated patron — for example, if they cause an accident after being over-served. This is one of the most commonly missed gaps in restaurant coverage, so confirm it's included before you open.

Question 5

Will my landlord require CGL insurance for my restaurant lease?

Accepted Answer

Almost always. Commercial leases for restaurant space typically require proof of $2 million in CGL coverage before you can sign, and many landlords ask to be named as an additional insured on your policy for the duration of the lease.

Question 6

What's the most common CGL claim for restaurants?

Accepted Answer

Slip-and-fall injuries are the most frequent restaurant liability claim — a customer slipping on a wet floor, spilled food, or an uneven surface. CGL's bodily injury coverage handles the resulting medical costs and any legal claim, which is why it's considered essential rather than optional for food-service businesses.

Scenario	What CGL Covers
Customer slip-and-fall	Medical costs and legal defense — the most common restaurant claim type
Food-borne illness claim	Products Liability coverage for injury caused by food served
Kitchen fire damages neighboring unit	Property damage liability to adjacent tenants or the building
Allergic reaction from mislabeled item	Bodily injury and legal defense costs
Intoxicated patron causes harm (with endorsement)	Requires separate Liquor Liability endorsement — not automatic

CGL Insurance for Restaurants & Food Service in Ontario

Why Restaurants Need CGL Insurance

Common Restaurant Liability Claims

Serving Alcohol? Check Your Liquor Liability

Restaurant CGL Insurance — Frequently Asked Questions

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