Insurance for Ice Cream Shop Owners in Ontario

Ice cream is absolutely a necessity in many people’s lives—we’re screaming for it, after all! But running an ice cream shop is not as simple as just spending all day scooping delicious frozen treats and trying to balance those scoops on a cone. As a business owner, you need to balance much more than that. From managing your employees and pleasing your customers to ensuring your ice cream shop has the financial protection necessary to withstand the cost of disasters that could damage your property and inventory, as well as lawsuits that could arise from liability risk exposures. That’s why Ontario ice cream shop insurance is so important.

The right Ontario ice cream shop insurance policy from the qualified brokers at Morison Insurance gives you the peace of mind that comes with knowing you won’t be forced to pay out-of-pocket for expenses such as damage restoration, stock replacement, legal defence fees and settlement costs.

What is Ontario Ice Cream Shop Insurance?

An Ontario ice cream shop insurance policy is a specific type of business insurance policy that is tailored to the needs of your particular business—not just for ice cream shops in general, but for your one-of-a-kind ice cream parlour. When the right Ontario ice cream shop insurance backs them, business owners can get financial assistance to cover a wide range of unexpected expenses. The expenses range from recovery after a disaster such as a fire or a flood to the cost of medical expenses and property damage restoration should you be found liable for third-party bodily injury or damage.

Without Ontario ice cream shop insurance coverage, the costs associated with a lawsuit or property loss from natural disasters and theft could be devastating to your business and your personal finances. It doesn’t matter how cautious you are and how carefully you follow all the rules, regulations and best practices—sometimes disaster still strikes. When it does, you’ll be able to rest easy knowing you’ll have the financial support you need from your insurance company to recover quickly and get your business up and running again.

Who Should Have Ontario Ice Cream Shop Insurance?

Anyone operating an ice cream shop or another similar type of food service business should invest in a business insurance policy such as Ontario ice cream shop insurance. That includes businesses such as:

• Sandwich shops
• Cafés
• Bubble tea shops
• Juice bars
• Delis
• Bakeries

When you call our experienced Morison Insurance brokers, we’ll take the time to learn more about how you choose to operate your business. This allows us to seek out the ideal types of coverage for your Ontario ice cream shop insurance and ensure you are covered against all the perils you are most likely to encounter during your business operations.

What Types of Coverage Are Recommended For Ontario Ice Cream Shop Insurance?

Your ice cream shop isn’t exactly like any other business out there, and your Ontario ice cream shop insurance policy needs to be unique as well to ensure you can run your business as you see fit without worrying about the financial consequences of risk exposure. Here are some of the key types of insurance you will likely need or want to include on your Ontario ice cream shop insurance policy.

Commercial Property Insurance

It doesn’t matter whether you have a chain of shops or just one cozy location that you operate out of—it’s crucial to have commercial property coverage on your Ontario ice cream shop insurance policy. From vandalism and theft to extreme weather patterns and fire, there’s a long list of possibilities for damaging events that could cause serious trouble for your commercial building and the contents inside, including freezers, equipment and even dining room fixtures. If something happens to cause damage or property loss, it will cost a significant amount of money to repair or replace the damaged or missing components of your building, equipment and more. Your insurance carrier will provide the funds to do that, up to the property insurance limits on your policy.

Commercial property insurance can include a wide range of more specific insurance coverages, depending on what you need for your Ontario ice cream shop insurance. For example, suppose you are in a location that is prone to flooding. In that case, it makes sense to get flood protection as part of your property insurance that will get you compensation for water incursion damage caused by factors such as heavy rain or an overflowing river or lake.

Equipment Breakdown Insurance

What if your biggest (or only) freezer broke down overnight and you came into the shop the following day to discover that all the ice cream inside was melted and destroyed? You certainly wouldn’t be open for business that day—or any day after that until you could get that critical equipment repaired and replace all that damaged stock. That’s when equipment breakdown coverage really comes in handy. Basic property insurance won’t typically cover mechanical failures, but you’re in luck when you’ve added equipment breakdown insurance to your policy. Your Ontario ice cream shop insurance company will supply funds to cover the cost of repairing your broken-down freezer and financial support to replace the ice cream that was destroyed when the failure occurred.

This coverage also applies to certain building functions, such as HVAC that may experience mechanical failure. This is useful—if it’s a hot summer day and your air conditioning isn’t working, customers are unlikely to linger in your shop, and your employees may not be able to continue working if they can’t take the heat.

Business Interruption Insurance

Suppose your commercial building was damaged due to a covered loss. In that case, you can count on your commercial property insurance for financial assistance to recover—but damage mitigation, replacement and repair work can sometimes take a lot longer than you’d like. While you’re waiting for all that to happen, you’ll have no choice but to close up shop, which will most likely seriously impact your bottom line. As we all know, most food service businesses operate on fairly thin margins. A long disruption could be enough to ruin a small business that doesn’t have business interruption coverage on its Ontario ice cream shop insurance policy. Business interruption insurance is critical coverage that will provide financial help so you can recoup your loss of business income and manage other expenses, such as employee wages. Hence, you can get your business back to normal as quickly as possible and bring in revenue. It’s worth noting that business interruption coverage does not typically apply to government-mandated closures for infectious disease control.

Commercial General Liability (CGL)

Along with property insurance, commercial general liability is a cornerstone of almost every commercial insurance policy. It protects your business against claims that you or an employee caused third-party bodily injury or third-party property damage. The classic example of a commercial liability claim is if someone comes into your shop and is injured when they slip on a wet, freshly-mopped floor. They could choose to sue you to recover their medical expenses and potentially additional compensation for pain and suffering. Needless to say, settlement costs for bodily injury and property damage claims can be eye-wateringly high—and there is also the cost of your legal defence in court to consider. Your Ontario ice cream shop insurance provider will support you with payments for settlements and legal defence fees should a lawsuit be brought against you for causing third-party property damage or bodily injury.

Product Liability Insurance

It’s common for ice cream shops to get their product from a supplier rather than manufacture it themselves, and if that’s how you operate, you don’t need to worry about product liability coverage. But if you make the ice cream you sell, including product liability on your Ontario ice cream shop insurance is an absolute must. Manufacturing your own unique ice cream is a significant draw for connoisseurs who appreciate the very best. But it also leaves you vulnerable to potential lawsuits based on claims that your product caused personal harm or injury. That could include issues caused by defects in manufacturing, design or marketing, mislabeling, advertising injury, etc.

An example is if you sell pre-packaged pints of your ice cream and need to include a list of possible allergens on the label. Suppose a customer ate it and suffered a severe allergic reaction. In that case, you could be liable for covering their medical bills and legal expenses, as well as the cost of your own legal defence, and get financial support from your Ontario ice cream shop insurance provider.

Commercial Automobile Insurance

If you run an ice cream truck business as a complement to your ice cream shop, you already know you need a mandatory commercial auto insurance policy. But some business owners need to realize that they need commercial auto insurance even if they use their personal vehicle for business purposes. For example, suppose you deliver a few boxes of packaged ice cream to local restaurants using your personal vehicle, and you get into a fender bender. In that case, your personal auto insurance may not cover the damage because you were using the vehicle for commercial purposes. If you’re not sure whether commercial auto insurance is necessary in your case, speak with your knowledgeable Morison Insurance broker so they can check that your Ontario ice cream shop insurance fully covers you.

Additional Ice Cream Shop Insurance Coverage

• Product recall insurance
• Employee dishonesty coverage
• Cyber liability insurance
• Additional business contents coverage 

Is Ontario Ice Cream Shop Insurance Required?

No, Ontario ice cream shop insurance is not required—aside from commercial auto insurance, business insurance coverage is not mandatory in Ontario or the rest of Canada. That being said, going without it would be a costly mistake. No one can avoid every last misfortune that could cause financial loss. Mistakes happen, and problems arise that couldn’t be prevented. When your business is threatened by damage, loss or litigation, you need the protection afforded by the right Ontario ice cream shop insurance.

How Are Ontario Ice Cream Shop Insurance Premium Costs Calculated?

When an insurance provider evaluates your business for Ontario ice cream shop insurance coverage, they look at a wide range of factors that help to paint a picture of the risks you are most exposed to and the perils that are most likely to befall your business as a result. They then use that information to determine how much of that risk they are willing to take on and come up with a quote for the cost of your Ontario ice cream shop insurance coverage. Some of the information they look at to do that includes:

• Your business location
• How long you’ve been in business
• Your experience in the food service industry
• Your product suppliers
• Your business safety plan
• Coverage limits
• Building condition
• Value of building contents
• Number of employees
• Previous insurance claims history

If you want to learn more about how much you should expect to pay for Ontario ice cream shop insurance, the best course of action is to call your broker at Morison Insurance and tell them more about your specific business. Once we have more information about how you operate, we can review the factors that will impact your premiums in greater detail.

Where Can I Get a Quote for the Right Ontario Ice Cream Shop Insurance?

If you’re ready to get started on your Ontario ice cream shop insurance quote, give the friendly team of Morison Insurance brokers a call at 1-800-463-8074, or request a quote online. You can count on our experienced brokers to find the right coverage for your unique business. We work for you, not the insurance companies, so you can rest assured that your best interests are our top priority.