As an owner of a fast food business, you may provide anything from burgers, fries and milkshakes to tacos and burritos, or a combination of different types of fast food cuisine. But like any business, you not only need to think about your profit margins and advertising, but also the potential risks of running your business. Some risks to be aware of include injuries to your employees, liabilities pertaining to customers who may become ill from the food you sell, and spoilage risks. Protect these and other risks by choosing the right type of fast food business insurance.
Types of Fast Food Business Insurance
To fully protect your quick serve restaurant, you should choose from the following insurance policies, as they cover multiple types of risks.
Your fast food business will have a lot of risks, many of which are covered under general liability insurance. Here are the most important parts of this policy:
- Premises liability – With premises liability, you have coverage from accidents occurring in your restaurant. If a customer slips on a spilled soda on your restaurant floor, her injuries will be covered by this policy.
- Products liability – You also need protection from your products, which are the food and drinks you sell. If a customer becomes ill from your food, the medical and legal ramifications are covered according to the terms of products liability policy.
- Completed operations – Lastly, there is completed operations, which is for any services you provide, such as damages caused by providing customers with catering services.
Business auto insurance is a commercial policy that covers your vehicle and employee’s vehicles. If an employee needs to drive to the post office to send off some legal paperwork and they get into an accident on the way, the vehicle damage, property damage and bodily injuries are covered by this policy.
Fast Food Business Business Owner’s Property (BOP)
If you want to include multiple coverages into a single package policy, consider the business owner’s property (BOP) policy. This lets you choose what to get coverage for, such as electronic data, business income, buildings and contents, dishonest employees or newly constructed buildings.
It is essential that your business property be in working order, including the contents inside. If something happens that you least expect, like a fire, it could be disastrous. Fires are a significant risk in a fast food business, so that makes business property that much more important to get. If a fire or other disaster occurs, you have coverage for repairs and replacing what was ruined.
Cyber crimes are those that occur online and are very common. If you have a website that promotes your latest specials or menu items at your fast food restaurant, you should have cyber liability insurance. Not only is your business at risk for cyber crimes like viruses, spyware and fraud, but so is anyone who visits your website.
Fast Food Business Spoilage Insurance
Your fast food business deals with food, therefore it needs spoilage insurance. After paying for the food and ingredients used in your establishment, the last thing you want to do is throw food away. But if food isn’t used by the expiration date or your refrigerator or freezer breaks down, it could mean spoiled food. With spoilage insurance as a vital part of your fast food business insurance, you have financial protection against the loss from food spoiling.
Workers’ compensation is required by law in most states and for good reason. It protects employees from work-related injuries or illnesses, both of which can occur with workers at a fast food restaurant. Your employees are dealing with hot oil, sharp utensils and slippery floors, which could mean an injury when you least expect it. Workers’ compensation will step in and help pay for medical costs, recovery and lost income if any of these occur.
Fast Food Business Crime Insurance
If a crime has been committed, such as money stolen from your cash register or your restaurant being vandalized in the middle of the night, it could be devastating to your business income. With crime insurance, the loss and damages are covered so you don’t need to worry about the ramifications.
Your liability policies for your fast food business offer great coverage, but they have coverage limits. Commercial umbrella insurance therefore raises your liability limits for these risks under one policy to protect your fast food business for claims that exceed your primary policy limits.
As you can see, your fast food restaurant has many risks, but there are also business insurance policies available for each of them. By protecting your business with fast food business insurance, you avoid possible financial suffering as a result of unexpected events.