Ontario B&B Insurance

Ontario B&B Insurance 

The experience bed and breakfast (B&B) hosts give their guests can be incredible. While hotel stays can be great, being just one of many people there makes it feel impersonal. The added touch of a bed and breakfast can feel like something made specifically for that guest. Providing this service for people can be a rewarding and profitable experience. 

However, being a business owner comes with a lot of risk. Maybe something happens to the home itself, such as a fire. Maybe one of your guests is allergic to something in your accommodation, and you are held responsible for any medical costs. Some of your most expensive equipment may break down suddenly. Luckily, with B&B insurance, you can protect yourself from financial damage, allowing you to continue pursuing your bed and breakfast dreams and keeping them a reality. 

What Is B&B Insurance in Ontario? 

Bed and breakfast insurance, also known as B&B insurance, is a type of business insurance that provides financial protection to bed and breakfast owners if an insured peril damages the business. These perils often come in the form of damage to the property, theft, and the many liability risks inherent in allowing customers on your property. Given that you are open to each of these exposures daily, the odds of any of these perils becoming the cause of a significant loss add up quickly. Your business could suffer a considerable setback if a loss occurs. However, with the right B&B insurance, your policy will provide you with financial protection, allowing you to continue to grow your business. 

Who Needs B&B Insurance? 

Anyone who owns a bed and breakfast in Ontario needs the coverage that B&B insurance provides. This is due to the many risks involved with owning a bed and breakfast. You have all the risks involved in property ownership, all the risks involved in letting people onto your property, all the risks associated with being a business that deals with food, and more. You also likely have some heavy equipment, and if your information is stored electronically, much of your data is likely exposed to cybercriminals. 

Is B&B Insurance Mandatory in Ontario? 

Although B&B insurance coverage is not legally required in Ontario for owners of these fine establishments, it is highly recommended. In addition to providing financial protection against several perils that you are open to, it is also sometimes needed for things like getting a mortgage. While you can take steps to lower the odds of a terrifying incident, reducing the odds to zero would be impossible due to many factors being out of your control. For this reason, it is recommended that every bed and breakfast owner get the protection that B&B insurance provides. 

What Does B&B Insurance Cover in Ontario? 

Most of the protection that B&B insurance provides for its policyholders is tied to liability coverage and replacements or repairs to damaged or stolen property. Commercial general liability coverage provides liability protection. In contrast, commercial property insurance and equipment breakdown insurance provide financial security for your most valuable items. More specialized coverages, such as commercial cyber insurance, cover more niche situations. It should be noted that this is just a start, and you have many insurance options. If you want to know more about getting coverage for your situation, it is best to speak with your Morison Insurance broker. 

Commercial General Liability Coverage 

Commercial general liability coverage protects you when someone suffers a bodily injury or property damage, that you are held responsible for. One of the most common risks in this category is a slip and fall on your bed and breakfast property, causing harm to the victim. Another would be if a customer’s valuable was damaged by something on your premises, and they hold you responsible. When a claim is made, commercial general liability coverage will cover your defence costs and any fees you face due to these charges. Sometimes, this is combined with a personal general liability insurance policy if guests stay in the home that the bed and breakfast owner lives in. 

Commercial Property Insurance 

Commercial property insurance covers a wide range of perils that your property could see. Most obviously, it covers physical damage to the structure itself. This includes risks such as fire, hail, vandalism, and similar threats. Commercial property insurance also protects any contents you hope to insure, such as beds, tables, electronics, decorations, and similar items you provide for your guests. It protects against damage due to the threats above and possible theft by customers or people who break in. You should track your inventory to help take full advantage of this coverage. This protection covers repairing or replacing anything lost if such a claim occurs. 

Equipment Breakdown Insurance 

Equipment breakdown insurance financially protects you when equipment within your bed and breakfast location ceases to operate for reasons outside your control. This could include sudden mechanical failures or machines becoming inoperable due to power surges. However, please note that this only protects against sudden, unexpected breakdowns, not perils that occur due to wear and tear or poor maintenance. 

Commercial Cyber Insurance 

Commercial cyber insurance gives you financial protection in situations where cybercriminals target your bed and breakfast. It might seem unlikely, but since your bed and breakfast is likely a smaller business, it can be an easy target for cyber-attacks. If they successfully target your business, your company’s and customer’s banking and credit card information can be exposed to cybercriminals. Commercial cyber insurance will pay the costs for you to get your systems back up, get legal advice, cover costs incurred, and get credit monitoring so that your information and your customer’s information are safe. 

Additional Coverages To Add To Your Bed and Breakfast Insurance Policy 

The following types of insurance are not included in a standard Bed and breakfast insurance policy. However, they are still very common, and very much worth considering for anyone who owns a bed and breakfast. If you are unsure if you should add these additional coverages , please speak to your Morison Insurance broker, who will be happy to answer any questions you may have. 

Commercial Umbrella Or Excess Liability Insurance 

Commercial umbrella insurance covers excess liability charges beyond what a policy typically allows. For example, if you are found responsible for a third party’s injury, your policy’s commercial general liability portion covers this particular expense. However, when all fees and court costs are added, you owe over the amount your commercial general liability protection offers. This is where your commercial umbrella insurance policy comes into play and will cover the remaining owed. 

How Much Does B&B Insurance Cost in Ontario? 

There is no set cost for B&B insurance in Ontario. This is due to the large number of factors impacting the level of risk each company faces. Also, if a bed and breakfast owner receives B&B insurance quotes from multiple companies, each will almost certainly be different since each company has a unique way of calculating risks. However, the same factors will impact cost, even when each insurance provider weighs and prioritizes them differently. These factors that impact risk include: 

• The value of the bed and breakfast and all contents within. 
• The claims history of the policyholder. 
• The location of the bed and breakfast. 
• The level of coverage the policyholder desires. 
• Any safety concerns inherent in the property. 
• Any risks inherent in the food being sold, such as possibilities of food poisoning and allergies. 
• Any safety precautions taken by the policyholder. 
• If there is any work outsourced or employees working there. 

Please note that this is not the complete list of factors that could impact your B&B insurance quote. If you would like to know more possible factors, it is recommended that you speak with your Morison Insurance broker. 

How Can I Lower The Cost Of B&B Insurance in Ontario? 

There are a handful of ways to lower the cost of B&B insurance. Most of them involve reducing the level of risk that you expose your insurance company to. Some common ways to lower your B&B insurance quote include: 

• Increasing your deductible. 
• Improving workplace safety. 
• Being proactive in providing special services to customers who require extra care, like allergy-safe foods and assistive devices for people with disabilities. 
• Avoid making claims on small losses to keep your claims record clean. 
• Providing safer equipment, such as stoves, that are less likely to cause a fire. 

Please note that this is not a complete list of ways to lower a B&B insurance quote. 

Where Can I Get An Ontario B&B Insurance Quote? 

You can get a B&B insurance quote from Morison Insurance. Morison Insurance is a family-owned 5-star insurance brokerage that treats our clients like an extension of that family. Please fill out the form on this page or call us at 1-800-463-8074 and get the excellent service and proper coverage you deserve.