Fast food insurance

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Fast food establishments streamline the sometimes lengthy restaurant and dining experience. Still, they are held to just as high safety and sanitation standards as any other place that serves food. This is because just as much, if not more, types of damage can occur. It’s especially the case with fast food restaurants’ heavy foot traffic and quick pace set in the kitchen. These can increase the odds of injuries and damages occurring to customers and employees.

Of course, the restaurants’ assets and appliances used for preparing food need a fair share of financial protection. Even though fast food restaurants can be small, their insurance policies can seem big and overwhelming –never mind considering the cost.

Insurance Navy is here to help with the latest in affordable and cheap commercial premiums for any business in an accessible way that enables anyone to become a sort of expert in insurance.

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Why do Fast food restaurants need Business insurance?

Fast food restaurants either tend to be locally managed franchise locations or entirely locally owned. An injury or damage claim from a customer or employee is enough to put any business in the red and even out of service without the proper insurance.

While most commercial or business insurance types aren’t required by law, it’s more than a good idea for fast food restaurants to be insured based on the following risks and hazards they have to be aware of on a daily basis:

Accidental injuries to customers during their visit, in most fast food settings, it’s usually the typical slip-and-fall injuries caused by wet floors
Underprepared or contaminated food that causes customers illness or an allergic reaction after not disclosing ingredients
Food spoilage due to a fridge or freezer malfunction
Property damage caused by fire, weather, and criminal hazards
An employee getting injured on the job and having to miss work while recovering
Cyber attacks and data breaches on the restaurant’s computer and payment system
Kitchen and food prep equipment and appliances that breaks and needs to be repaired or replaced
Criminal damage and malicious activity from employees
Lawsuits brought on by any third party or entity

These are just some of the things that a fast food business insurance policy will cover

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How much does Fast food insurance cost?

While on the topic of affordability, the cost of fast food insurance varies on the location size, number of employees, location, and several other varying personal factors. This is why finding average total insurance costs is difficult.

However, it’s been reported that fast-food restaurants spend anywhere from $500 to $1,200 annually on commercial liability insurance. If you’ve been reading along, that alone is the tip of the iceberg if you plan on adding more types of insurance to the policy.

Fast food restaurants aren’t the most expensive business to insure, but they also aren’t the cheapest.

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Essential Fast food restaurant insurance

Like any business, a fast food restaurant’s financial security is as good as its insurance policy. With several of the aforementioned risks of running an establishment, knowing what coverage to insure your business for can seem like a lot.

It doesn’t take an insurance genius to put together a fast food policy, as it only requires surface-level knowledge about business and commercial insurance. The following are the foremost fast food establishments.

Commercial liability insurance

When a customer is injured on a business’ ground while they are buying a product or receiving a service, any resulting medical fees, ensuing legal fees, and lost wages of the injured are the responsibility of the establishment.

As said before, fast food restaurants see much more foot traffic throughout the day compared to regular service restaurants, with much fewer customers sitting down. Wet floor signs are especially important here for the all-too-common slip-and-fall injuries.

Commercial liability for a fast food restaurant can also cover any medical costs and lawsuits if a customer gets ill from underprepared or contaminated food.

While specialized product and service liability insurance may be recovered for this, it’s still libel on the fast food restaurant, nonetheless. While general liability isn’t required by law, it’s essential for any business to protect itself and its customers.

Commercial property insurance

Then comes the matter of insuring the restaurant or location itself with commercial property insurance. Fast food restaurants cans afford to be versatile with their locations, given their compact sizes and speedy services.

Property insurance isn’t required like liability insurance but is just as important since every location has fire, weather, and criminal risks of varying levels.

Fires and criminal damage tend to be the largest factors when it comes to fast food property damage. Grease fires are a regular risk, while theft and vandalism can occur in areas with high crime rates.

Property damage insurance is iffy when it comes to nature-related damages, but it should cover any debris that falls on the building or structure as a result of a fierce storm.

Specialized property insurance for damages caused by more specific forces of nature, like earthquakes or twisters, can be bought if needed.

Workers compensation insurance

Fast food workers make up a large percentage of the workforce. Like any other hired set of hands, it’s required that the business has workers’ compensation insurance.

Everyone working part-time and full-time is entitled to workers’ compensation protections. If injuries were to occur while on the clock, then the workplace is responsible for any medical costs and lost wages if work has to be missed.

There are several ways that fast food workers can and do get injured. Thermal burns, knife cuts, and some medical conditions can arise from their shifts, especially if they work multiple.

Even disability and death benefits are covered should something severe happen. Workers’ compensation is not unique to fast food restaurants; every business providing a product or service must carry it according to federal law.

Cyber liability insurance

What makes fast food so fast is how automated the ordering and purchasing systems have become. Some big-name establishments employ the use of a touch screen or kiosks to fulfill orders and process payments.

Like any other computer system, these ones are just as vulnerable to cyber-attacks and data breaches with customers’ sensitive information –credit card info, to be exact.

There is also the matter of employee or company files that are kept digitally on-site in the manager’s office, for example. Cyber liability insurance comes to the rescue to cover any ensuing damages and losses along with the recovery effort. It may also cover any modifications and repairs to cyber security systems.

It’s been reported that the loss of a single customer’s info can mean about $150 in losses. Data breaches typically multiply this by at least tenfold.

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Additional types of Insurance for Fast food restaurants

It’s important to at least consider the aforementioned insurance coverages for a fast food location because at least one of them will need to be on the policy. These makeup what could be described as basic coverage for a commercial location.

That being said, there are some additional insurance types that you can insure on the policy for more in-depth coverage for the more specific and overlooked damages that can occur.

Food spoilage insurance

Only the freshest food and ingredients should be served at restaurants; this can go up in flames if the freezer or the fridge suffers something like a power surge or loss that causes them to spoil.

If such food were to leave the kitchen, then it would surely result in a liability claim like the ones previously mentioned. If it’s a large amount of food, then it can cost a lot to replace. Food spoilage insurance comes in to cover the replacement and replenishment cost of fresher food and ingredients.

Commercial car insurance

Some local fast-food establishments may offer catering services. The vehicle used for transporting all those burgers, pizza, or chicken should have commercial car insurance.

This is required just like standard car insurance is for personal vehicles, and just like personal car insurance, there are plenty of add-ons like comprehensive and collision coverage that go beyond the damage and injuries your or an employee can cause to other drivers and their cars.

Business interruption insurance coverage

If major damages were to occur to a business property that forces it to close until repairs and renovations are complete, then the business can miss out on some income.

This insurance is worth considering for any business that relies heavily on its income, which is nearly every business on the planet. Since fast food restaurants tend to be locally owned or managed, a business owner’s policy (BOP) can more than benefit them as it bundles commercial liability, property, and business interruption insurance.

The best part about a BOP is that it comes with pretty affordable premiums, given that it’s made up of three different insurance coverages.