A restaurant business insurance review is easier when you work through the operation in a fixed order. Start with the legal business and premises, then list assets, customer activities, equipment dependencies and financial obligations. This approach helps Ontario owners see gaps that can remain hidden when a renewal is treated only as a price decision.
The checklist below is designed for an annual review, a move to new premises or a substantial change in services. It does not mean every restaurant needs every available coverage. It gives you a practical set of questions to take to your broker so choices can be made using your own business facts.
1. Confirm the insured business and address
Check the legal entity, operating name, location and contact information. Explain whether the premises are owned or leased and whether more than one business operates there. If you have recently incorporated, changed ownership or added a location, do not assume an older policy automatically reflects the new structure.
Collect leases and relevant contracts before the review. Identify required liability limits, additional insured requests and responsibilities for damage to the premises. Ask your broker to compare those obligations with the proposed insurance. Seek legal advice for contractual responsibilities that extend beyond what the insurance wording can promise.
2. Describe every service offered
Write down opening hours, seating, cooking methods, alcohol service, takeout, delivery, catering and private events. Include patios, entertainment and any off-site work. Provide the sales information requested by the insurer and explain planned changes. A quotation based on a limited description may be difficult to assess when actual activities are broader.
Use a manager’s walk-through to catch overlooked services. Does the restaurant prepare food for another brand? Is a separate operator using the kitchen? Do staff transport equipment to events? Record those details and ask which affect the insurance program rather than deciding on your own that they are too small to mention.
3. Update equipment and contents values
Prepare an inventory of cooking equipment, refrigeration, furniture, electronics, signs, stock and tenant improvements. Note which assets are financed, leased or owned by another party. Ask how property is valued under the proposal and whether the limit reflects current replacement and installation costs.
Use invoices, photographs and supplier estimates to support the review. Keep copies away from the premises in case the restaurant becomes inaccessible. Revisit the inventory after major purchases rather than waiting until renewal. An attractive new kitchen can represent a substantially different property exposure from the equipment listed when the business first opened.
4. Review customer and product liability
Discuss covered allegations involving customer injury, property damage and food products. Explain who maintains entrances, parking areas and shared spaces. If alcohol is sold or served, ask specifically about appropriate liquor liability and relevant conditions. Different liability terms should not be treated as interchangeable simply because they appear on the same quotation.
Review per-occurrence and aggregate limits with your broker, along with the treatment of defence costs. Keep incident reporting procedures accessible to shift managers. Staff should know how to preserve facts and notify management without admitting liability or promising a settlement before the insurer has reviewed the matter.
5. Examine breakdown and spoilage
Ask whether equipment breakdown is included and which systems are addressed. Discuss refrigeration failure, electrical problems and the treatment of resulting stock losses. Clarify any utility interruption extension and the difference between a failure inside your premises and an outage originating elsewhere.
Record equipment service arrangements, monitoring and the response to an after-hours alarm. Ask what evidence should be retained after an incident. A maintenance contract, warranty and insurance policy perform different jobs; knowing where each applies helps you plan repairs without assuming every failure is an insured breakdown.
6. Test the business interruption arrangement
Work through a serious covered loss that closes the restaurant. Ask what triggers the coverage, how the income loss is calculated, which continuing expenses are addressed and how long protection may continue. Review waiting periods, limits and the selected indemnity period instead of focusing only on a headline amount.
Estimate realistic reopening time, including equipment lead times, repairs and required approvals. Consider whether a temporary kitchen or limited takeout operation is feasible. Ask how extra expenses are treated and what consent is required. Keep financial records organized so income and expenses can be explained accurately if a claim occurs.
7. Review delivery, crime and cyber exposures
Identify whose vehicles are used for deliveries and who employs or contracts with the drivers. Ask about the appropriate auto and non-owned vehicle arrangements. A third-party platform or an employee’s personal policy should not be assumed to cover every restaurant-related vehicle exposure.
Then review payment systems, supplier transfers and access to customer information. Ask which cyber and crime options are relevant, including fraudulent payment instructions and employee dishonesty. Document verification procedures for banking changes. These questions are particularly useful when one busy manager both approves invoices and makes payments.
8. Check people and outside contractors
Clarify workplace injury obligations and any employment-related insurance questions with the appropriate advisers. General customer liability should not be assumed to address every claim involving staff. Keep staffing information accurate and explain any unusual arrangements, such as shared employees or contracted event teams.
For trades, cleaners and other contractors, clarify responsibilities before work starts. Request appropriate evidence of insurance and retain service reports. If construction or renovation is planned, tell the broker before it begins so the work, occupancy and property arrangements can be reviewed rather than inferred from the finished result.
9. Compare deductibles and outstanding conditions
- List the deductible for each important coverage.
- Identify sublimits and exclusions that affect your activities.
- Record inspections, documents or changes the insurer still requires.
- Confirm the effective date and payment arrangements.
- Keep reporting instructions and emergency contacts current.
- Save the broker’s written explanation of material differences.
Choose deductibles using available cash and the potential effect of a shutdown. If a lower premium involves retaining a larger loss, make that decision consciously. Resolve outstanding requirements promptly and keep proof of completion so important conditions are not lost among ordinary restaurant paperwork.
Turn the checklist into a yearly routine
Assign a manager to update the checklist before renewal and after significant changes. A short, accurate record is more useful than a long questionnaire copied unchanged from last year. Review the business as it operates today and discuss expansion before committing to it.
Explore Sterling’s restaurant business insurance options and request a coverage review using your completed checklist.
General information only. Coverage is determined by policy terms and underwriting. Background: IBC business insurance guidance.