Commercial general liability, often shortened to CGL, covers claims from people outside your business who say your premises, your food or your operations caused them bodily injury or damaged their property. It pays for your legal defence and for settlements or judgments up to the policy limit. For most restaurants it sits at the centre of a broader package, which our overview of how a food business package fits together explains.
The policy does not protect your own building, equipment or income. It protects you from what other people say you did to them. Because insurers price restaurant liability very differently, we shop your application across several insurers that actively write food businesses rather than sending it to just one.
Premises liability: what happens on your floor
A restaurant is a busy public space with wet floors, hot plates, stairs to washrooms, patios and narrow aisles between tables. Premises claims are among the most common liability claims food businesses see, and Ontario winters add snow and ice to the list.
- A guest slips on a spilled drink near the bar.
- A child pulls a hot coffee off a low table.
- A patio umbrella blows over in a gust and hits a diner.
- A delivery driver falls on an icy back step you were supposed to salt.
General liability also covers damage you cause to someone else’s property, such as a server spilling red wine on a guest’s coat or a catering crew scratching a client’s hardwood floor.
Example: A diner trips on a torn mat at the entrance of a busy Toronto brunch spot and fractures a wrist. The guest’s lawyer claims the mat had been damaged for weeks. General liability pays a lawyer to defend the restaurant and, if the claim succeeds or settles, pays the damages up to the policy limit. Our brokers help the owner report the claim and gather the incident notes the adjuster needs.
Products liability: food illness
Products and completed operations coverage is normally part of the same policy. For a food business, the product is the meal. If a guest says your chicken gave them salmonella, or a batch of catered sandwiches leaves a wedding party ill, this is the part of the policy that responds.
Insurers will ask about food safety practices: who on staff holds food handler certification, how you log cooler temperatures, and how you store and rotate stock. Good records help with underwriting and help defend a claim, and we present them to insurers as part of your application.
Allergens
Allergen claims deserve their own attention. A server who forgets to pass along a nut allergy, a sauce made with a shared fryer, or a menu that does not list sesame can lead to a serious reaction and a significant claim.
Most general liability policies treat allergic reactions as a form of bodily injury under products liability. What varies is how insurers view your controls. Practical steps that help:
- A clear process for flagging allergies from order to kitchen ticket.
- Written recipes and ingredient lists that front-of-house staff can check.
- Separate prep tools and surfaces where you advertise allergen-free items.
- Training records for new hires.
We check whether any allergen or contamination exclusions apply to the options we bring you and explain them before you choose.
Additional insureds and certificates
Landlords, mall managers, festival organizers, event venues and corporate catering clients usually want two things before you start: a certificate of insurance and to be named as an additional insured. The certificate proves you have coverage. Additional insured status extends your policy’s protection to them for claims arising from your work.
Requests often come with short deadlines, especially for caterers and food trucks booking events across the GTA in patio and festival season. We handle certificates for landlords and venues for you, so a request does not hold up a booking. If you cater off-site, our page on liability for caterers working in other venues covers the details that matter there.
Choosing your limits
| Limit per occurrence | Who typically chooses it |
|---|---|
| $1 million | Very small operations with no lease or contract requirements |
| $2 million | The common starting point for restaurants, cafés and bakeries |
| $5 million | Locations in malls or office towers, larger venues, caterers serving corporate events |
| Umbrella above $5 million | Multi-location groups, large venues, operations with heavy alcohol service |
Your lease and your contracts usually set the floor. Above that, think about your worst realistic day: a crowded room, a serious injury, a claim that names your business and you personally. Our brokers will talk this through with you in plain language.
What general liability does not cover
- Alcohol-related claims. Many policies limit or exclude claims arising from serving alcohol. If you hold an AGCO liquor licence, read about liquor cover for licensed premises.
- Your own property and income. Fire damage to your kitchen and the income you lose while closed are handled by property and business interruption cover.
- Employee injuries. These go through the WSIB.
- Vehicles. Accidents involving delivery vehicles need commercial auto or hired and non-owned auto coverage.
- Professional advice and cyber incidents. These need separate policies.
Getting a quote for restaurant liability
Fill in the short form on this page or call us at (416) 346-6886. One of our brokers asks about your lease, contracts and operation, then we take your application to insurers that suit your business and recommend a limit that fits. We walk you through the options, set up the policy, and stay with you for certificates, changes, renewals and claims. For a sense of budget first, see our guide to what drives restaurant premiums.
Common questions
How much liability coverage does a restaurant need?
Limits of $2 million per occurrence are common for restaurants. Landlords, mall managers and event venues often require $2 million to $5 million, so check your lease and contracts and we will help you choose a limit that fits.
Does general liability cover a customer who gets food poisoning?
Usually, yes. Products and completed operations coverage, which is normally part of commercial general liability, can respond when a customer says food you served made them ill. Exclusions and conditions vary by insurer, and our brokers will walk you through the wording.
Does general liability cover my own employees if they get hurt?
No. In Ontario, employee injuries are generally handled through the WSIB, not through general liability.
What is an additional insured?
An additional insured is another party, such as your landlord or an event venue, added to your policy so they are protected against claims arising from your operations. We add them and issue the certificate for you.
Will general liability cover a fight or an over-served guest?
Claims tied to alcohol are often limited or excluded under general liability. Licensed premises usually need separate liquor liability coverage for those situations.