Restaurants concerned with insurance implications of BYOW

With the introduction in the Ontario legislature of a bill to allow restaurant patrons to “bring your own wine” (BYOW), restaurant owners are expressing concern the legislation will have negative insurance implications. Specifically, the Ontario Restaurant, Hotel and Motel Association (ORHMA) wants to delay the bill until formal discussions are held to resolve issues including the impact on already high liability rates for restaurants. “Details of the government’s proposal are few, and while I have several questions about the implications of such a policy,” the ORHMA writes in a form letter it is asking members to send to Minister of Consumer and Business Services Jim Watson. “I am extremely concerned with the impact that a BYOW policy would have on my exposure to liability. In recent years, operators have struggled to maintain their insurance coverage. Skyrocketing insurance premiums and decreased availability has forced some operators to forgo insurance coverage, placing their businesses and livelihood at risk.”Minister Watson introduced the changes to the Liquor Licence Act which would see special permits granted to BYOW establishments, although participation in the program remains voluntary. Alberta, Quebec and New Brunswick already allow BYOW, although the Canadian Restaurant and Foodservices Association (CRFA) notes that demand from the program has not been significant since its introduction.