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From accidental fire, which leads to bodily injuries and property damage to a lawsuit filed by a customer that has fallen sick from food poisoning - there are many risks that can lead to legal action when running a fast-food restaurant.
Having fast food restaurant insurance will provide the necessary level of coverage so that your business doesn’t suffer financially in the event of a claim or a lawsuit that has resulted from an accident at the restaurant.
Why Do Fast Food Restaurants Need Insurance?
There are many reasons why fast food restaurants need insurance, but the biggest reason by far is to financially free the business from having to pay out any compensation, reimbursements, or costs associated with legal fees in the event of a lawsuit out of pocket.
For instance, if a customer gets food poisoning from consuming food that wasn’t cooked properly and they fall sick, they may sue the business and request compensation if it has caused them to get hospitalized or miss out on work.
In other cases, if a staff member slips, trips, or falls at the property and gets seriously injured as a result - having insurance in place will help cover the employee’s lost wages, rehabilitation and medical costs, and other fees associated with the unfortunate event.
On the other hand, some fast-food restaurants have no choice but to take out fast-food restaurant insurance as it is required by law.
Either way, having an adequate level of cover is essential in protecting your business and its financial standing in the event of an unfortunate accident.
What Are The Different Types Of Insurance Fast Food Restaurants Need?
Fast food restaurants can benefit from a wide variety of insurance coverage. Generally speaking, the policies that you take out will depend on the state you operate out of, the number of employees and company cars you have, the size of your business, and other similar factors.
Please take a look below to see the list of the most recommended insurance policies for fast-food restaurants in the United States.
What Is The Cost Of Insurance For Fast Food Restaurants?
The cost of insurance for fast food restaurants will depend on the extent of coverage your restaurant needs. Generally speaking, the more cover you get, the higher the price will be.
The average fast-food restaurant in the United States pays only $175 monthly or $2080 annually for a business owner’s insurance policy.
If your fast food restaurant has employees, then you’ll also need worker’s compensation insurance, which provides cover for your employees in case they fall sick or injure themselves at the workplace. The average fast-food restaurant in the U.S. pays around $130 per month or $1560 per year for it.
Fast food restaurants that serve alcohol must also get liquor liability insurance to protect themselves from intoxicated customers. This type of insurance costs the average fast-food restaurant around $50 per month or $600 per year.
Finally, general liability insurance for fast food restaurants costs around $70 per month, which adds to a total of $805 annually. This policy will provide your business with general protection from third-party bodily injuries and property damage.
Typical Fast Food Restaurant Insurance Claims
Fast food restaurants, their staff, and customers are exposed to different risks every day which can land the business in trouble in the event of an accident.
The majority of claims made by fast-food restaurant owners revolve around food poisoning, mild to severe bodily injuries as a result of slips, trips, and falls, and property damage.
In more rare cases, fast food restaurants also make claims regarding vandalism, theft, and road accidents that have taken place during a home food delivery service.