There's more to taking care of your 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 insurance coverage that will benefit your restaurant most. For that, an independent insurance agent is just what you need in your corner.
An independent insurance agent can help you find the insurance coverage for your fast-food restaurant and tailor it entirely to your needs. No matter what your restaurant specializes in, an independent insurance agent will help you shop multiple carriers to help find the right insurance so that your business and livelihood are protected. But first, here's a bit more background on the types of insurance coverage you need to keep in mind.
What Types of Insurance Should a Fast-Food Restaurant Have?
A fast-food restaurant owner must oversee nearly every aspect of the restaurant's operations. Having the right types of insurance can help troubleshoot common problems while allowing you and your employees to continue to serve your customers with high-quality delicious food.
Depending on where your restaurant is located, there may be rules and regulations about the types and amounts of insurance you must carry.
Commercial liability insurance
Commercial liability insurance helps protect you from paying out of pocket for claims made by others. It protects you from the financial consequences of common occurrences like a customer injuring themselves on your property. This is the most common type of insurance sought out by small restaurant owners.
Commercial property insurance
Commercial property insurance pays for costs associated with replacing your restaurant's structure, fixtures, and contents. If your landscaping or signage is damaged, your property insurance policy will pay to fix it in most cases.
Talk with your independent insurance agent about the difference between insuring your fast-food restaurant for replacement value or cash value. Replacement value insurance may cost more, but it also provides enough coverage for you to rebuild your place of business so you can reopen as fast as possible after a covered event.
Business interruption insurance
Business interruption insurance helps protect you from losing revenue if you are forced to close your restaurant for a variety of reasons.
It helps provide money to keep your fast-food restaurant's bills paid even when you aren't servicing customers if a covered event prevents you from remaining open.
Cyber liability insurance
Restaurants that maintain a database of customer information and take payment via credit card should consider getting cyber liability insurance. This coverage helps pay for loss of income if you are temporarily unable to do business because your computer system is under attack by hackers.
One of the biggest dangers to restaurant owners is a breach of the system they use to process credit cards. Although the systems are encrypted, if someone hacks the network to gain access to sensitive customer data, it may represent a big loss for a restaurant.
Cyber liability insurance pays for credit monitoring for customers affected by security breaches, and it may even cover necessary security system repairs and upgrades.
Are Fast-Food Restaurants Required to Have Certain Types of Insurance?
Fast-food restaurant owners are responsible for maintaining certain insurance to protect their lienholders. It's smart to insure your building, equipment, and business vehicles, of course. You also must stay in compliance with lenders and your franchise.
Insurance required by the franchise
Some franchises include specific insurance requirements as part of their franchise agreement. It's crucial to be able to customize insurance coverage to meet the needs of your fast-food restaurant while following the guidelines in the franchise agreement. Have your franchise agreement close at hand when you speak with your independent insurance agent about essential coverage.
Bank and mortgage insurance requirements
Depending on your bank or credit union's insurance requirements, you may need to meet minimum amounts of coverage to help protect financed assets. If your restaurant offers delivery and owns vehicles, you may also have to prove that you have the required insurance policies in place.
Owners of leased property
If you don't own your building, your landlord may require you to maintain certain insurance coverage. Your lease may include specific language about the types of amounts of insurance you must maintain while you rent the property.
How to Find the Best Insurance for Your Fast-Food Restaurant
Insurance policies can be complex, and searching through options can be confusing, time-consuming, and frustrating. An independent insurance agent's role is to simplify the process.
When it comes time to purchase insurance, they’ll break down all the jargon and explain the nitty-gritty so you understand exactly what you're getting.
And should you need to file a claim, you’re not alone. Your agent will be right there to help guide you through every last step and get your life back to where it all was. How great is that?
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Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best 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.
Find an independent insurance agent in your community here.
TrustedChoice.com Article | Reviewed by Alexander Dopazo - Insurance Agent
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