Insurance Menu for Fast-Food and Quick-Service Restaurants
Fast-food and quick-service restaurants carry many of the same risks as other restaurants and businesses — for example, property damage, employee theft, and cyberattacks. A typical commercial policy generally will cover these common types of risks for a fast-food restaurant. However, if a restaurant is part of a franchise, leases its premises, or seeks a bank loan, it may be required to purchase additional insurance to cover risks that are specific to the fast- and quick-service food industry.
If you own or operate a fast-food or quick-service restaurant and are concerned about whether you are properly insured, talk with your local Trusted Choice Independent Insurance Agent®. As a trained professional, your agent is there to help you determine which insurance coverages your business is required to maintain as well as those it would be prudent for you to consider.
Here’s a look at typical coverages that the owner of a fast-food or quick-service restaurant might need:
General commercial insurance
General commercial insurance, including property and liability, provides standard coverages that all restaurant owners need. Commercial property insurance covers damage from fire and weather events and generally replaces damages to a building, its fixtures, and contents. For restaurants, commercial property usually extends to exterior signage and landscaping for the business as well.
Commercial liability is needed for claims that others can make against a quick-service food business. Two types — product and premises — are available to help protect businesses against risks like food poisoning, hot coffee spills, and slip-and-falls, to name a few.
Business interruption insurance
If your fast-food or quick-service restaurant ever is forced to close temporarily, business interruption insurance can help you replace lost income. Different types of business interruption insurance can also cover income losses due to events like food spoilage. Your Trusted Choice agent can help you determine what would be most suitable for your restaurant.
Cyber liability insurance
Any business in the modern age needs cyber liability insurance. For quick-service restaurants, cyber liability is essential to replace lost income in the event that a business is temporarily unable to do business because a computer system is under attack by hackers. Depending on the policy, cyber liability can also cover security system repairs and upgrades. If customer data is affected by a cyber breach, cyber liability insurance also covers credit monitoring for those customers.
Workers’ compensation
Even the safest fast-food and quick-service restaurants can be dangerous for employees. You provide your employees with the best safety training possible, but working in kitchens still comes with risks of fires, burns from hot food, injuries from knives, and slips and falls. A workers’ compensation policy is not only recommended but often required by law depending on the state where your restaurant does business. Your Trusted Choice agent will know the local insurance laws and regulations you must meet.
Commercial vehicle insurance
Does your restaurant offer a delivery service? Does your restaurant own those vehicles? Do employees use their own vehicles? Commercial vehicle insurance is necessary to cover any cars, trucks, or vans used for business purposes.
Insurance requirements
You will need to check with your Trusted Choice agent to ensure that your coverage meets the requirements of those your restaurant is under obligation. For example, if you are a franchisee, your franchises will have specific insurance requirements. When you meet with your independent agent to discuss coverage, be sure to have your franchise agreement on hand to make sure all requirements are met.
Similarly, banks and mortgage companies can also have insurance requirements for the businesses they work with. To protect its own financed assets, your financial institution may require you to meet minimum amounts of coverage for your restaurant.
Oftentimes, fast-food and quick-service restaurants lease the property they operate in. Those landlords may require specific insurance coverage for your restaurant. Once again, make sure to review your lease with your Trusted Choice agent.
Work with a reliable expert
From general commercial coverages to specific coverage requirements, your restaurant has unique insurance needs that aren’t always easy to navigate. Working with your Trusted Choice agent today can save you time, frustration, and potential legal difficulties. And you’ll be a happier restaurateurwhen you have the assurance that you’re properly protected and insured.