Fast Food Restaurant Insurance
All fast food restaurants must have the proper protection against losses due to possible lawsuits, spoiled inventory, vandalism, and more.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Cara Carlone is a licensed P&C agent with 20 years of experience. She has her P&C license in RI and TX and holds CPCU, API, and AINS designations.
There's more to taking care of your fast food restaurant than making sure you always have fresh oil in the fryers. Protecting your fast food restaurant from financial losses is a complex task. Understanding your business insurance options is the first step to choosing the types of coverage that can benefit your restaurant most.
Fortunately, an independent insurance agent can help you find the right coverage for your fast food restaurant and tailor it entirely to your needs. No matter what your restaurant specializes in, an independent insurance agent can help you shop multiple carriers to find the right policy. But first, here's a bit more background on insurance for fast food restaurants.
What Is Fast Food Restaurant Insurance?
Fast food restaurant insurance is a specialized form of business insurance designed to meet the needs of companies in this unique industry. A fast food insurance policy considers various risks owners of these businesses face, such as possible customer injuries on the premises or lawsuits due to claims of various types of harm. An independent insurance agent can help you find the best insurance for fast food establishments.
What Insurance Risks Do Fast Food Restaurants Face?
Fast food restaurants are vulnerable to a number of different risks. While some of these hazards are faced by most types of businesses, some are more unique to the industry. A fast food restaurant needs coverage designed to consider the following potential threats:
- Customer injuries on the premises
- Customer illnesses due to the products sold by your restaurant
- Lawsuits related to advertising injuries
- Accidents or other incidents involving company vehicles like delivery cars
- Loss of inventory due to spoiled ingredients
- Theft and vandalism of business property
These are just a few examples of possible hazards faced by fast food restaurants on a daily basis. A comprehensive fast-food insurance policy will address all of these risks and more.
What Does Fast Food Restaurant Insurance Cover?
A fast food restaurant owner must oversee nearly every aspect of the restaurant's operations. Having the right types of fast food business insurance can help troubleshoot common problems while allowing you and your employees to continue to serve your customers high-quality food. Look for the following coverage options when building your policy:
- Commercial general liability insurance: This covers your fast food restaurant against expenses related to third-party claims of bodily injury or personal property damage on your business's premises or otherwise caused by your business.
- Spoilage insurance: This can reimburse your fast food restaurant if its inventory, such as ingredients used to make the food served to customers, spoils due to a covered disaster like an extended power outage.
- Product liability insurance: This covers your fast food restaurant against expenses related to third-party claims of harm caused by the products sold by your business.
- Advertising liability insurance: This covers your fast food restaurant against expenses related to lawsuits involving third-party claims of harm caused by your business's advertisements.
- Commercial property insurance: This can reimburse your fast food restaurant if any of its business property, such as equipment, buildings, inventory, etc., gets stolen, damaged, or destroyed due to a number of listed perils like fire.
- Commercial vehicle insurance: This type of car insurance for delivering fast food can protect your restaurant against various incidents involving company vehicles, including lawsuits and theft or vandalism.
- Business interruption insurance: This can continue your business's revenue and pay other expenses like rent and employee wages during temporary closures caused by covered hazards such as a break-in.
- Cyber liability insurance: This can reimburse your fast food restaurant for the costs of a data breach or cyber-attack that exposes, distributes, or sells sensitive or private data like employee records or customer payment information.
- Workers' compensation insurance: This can pay for expenses related to incidents of employee injuries or illness caused by the work environment or job tasks.
An independent insurance agent can help you build a full picture of protection in a fast food restaurant business insurance policy.
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How Much Does Fast Food Restaurant Insurance Cost?
The cost of fast food restaurant insurance can vary widely depending on several factors about your unique business. These can include your fast food restaurant's location, size (including if you're insuring just one stand-alone restaurant or a whole chain), and annual revenue.
Other factors, still, including the total amount of equipment and inventory you need to insure, can also affect your policy's premiums. Working together with a local independent insurance agent is a great way to get equipped with the most affordable coverage in your area.
The Benefits of Working with an Independent Insurance Agent
When it comes to finding the best fast food insurance, no one's better equipped to help than an independent insurance agent. That's because independent insurance agents have access to multiple insurance companies, ultimately finding you the best fast food insurance coverage, accessibility, and competitive pricing while working for you. So, instead of searching around from company to company, your agent can help simplify the whole process and let you focus on the business side of things.