Last Updated: February 21, 2024, 3:53 pm by TRUiC Team

Healthy Fast Food Restaurant Business Insurance

Getting insurance for your healthy fast food restaurant is essential.

Healthy fast food restaurants need to be protected against things like claims of breaches of contract, property damage, and personal injury.

For example, a customer could slip and fall in your restaurant or get food poisoning and file a lawsuit.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Healthy Fast Food Restaurant

General liability insurance is — generally speaking — one of the most important insurance policies for healthy fast food restaurants. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Besides general liability insurance, your healthy fast food restaurant probably needs some or all of the following:

  • Commercial property insurance: This covers all of the property your healthy fast food company uses, such as computers, printers, etc.
  • Commercial auto insurance: You need to have a commercial auto insurance policy if your company owns a vehicle, as any accidents you or your employees get into on the job won’t be covered by your standard auto insurance.
  • Business income coverage: If an event like a natural disaster or a major power outage causes a significant business interruption, this type of insurance provides financial protection. It covers expenses such as lost income, relocation costs, and extra expenses incurred during the recovery period.

You will also need to choose the right business insurer for your healthy fast food restaurant. Both traditional and online providers offer high-quality coverage, but we recommend small businesses opt for an online insurer. 

This is because online insurances (i.e., Tivly and Next) are faster, cheaper, and often more flexible than their traditional counterparts. Online insurers use AI to match the quality of traditional insurers.

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Cost of General Liability Insurance

On average, healthy fast food restaurants in America spend between $500 - $1,200 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a healthy fast food restaurant to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Healthy Fast Food Restaurant

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Example 1: One of your employees spills food on a client’s expensive purse, damaging it beyond repair. General liability insurance would pay to replace the patron’s damaged property.

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Example 2: While an employee collects supplies to clean up soda spilled by a guest, another patron slips on the wet floor and injures himself. Even though your employee displayed a warning sign near the spill, the injured patron sues your restaurant. General liability insurance would pay for your legal fees and any damages awarded in the lawsuit.

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Example 3: After you rebrand your business as part of a new marketing campaign, a local competitor files a lawsuit against you. He claims your new slogan is too similar to his and that he’s lost business as a result. General liability insurance would cover your legal defense costs and any awarded damages.

Other Types of Coverage Healthy Fast Food Restaurants Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Property Insurance

You made a major investment in the real estate, build outs, and equipment necessary to establish your restaurant. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.

You can typically purchase commercial property insurance as part of a business owners policy (BOP). 

Product Liability Insurance

Product liability insurance offers protection to businesses that manufacture, supply, or sell products — including food. If a patron names your business in a lawsuit because they claim they became ill after eating at your restaurant, product liability insurance would cover your legal fees and any required settlement.  

You can typically purchase this coverage as part of a business owners policy (BOP).

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident. For extensive injuries resulting in lawsuits, this type of policy also covers a business owner’s legal defense costs.  

Most insurers offer workers’ compensation insurance as a standalone policy.

Business Interruption Insurance

If you need to close your restaurant temporarily after a fire, severe storm, or other covered events, it could take weeks, months, or even years to complete the necessary repairs. Business interruption insurance helps cover your expenses and lost revenue until you can reopen.  

You can typically purchase this coverage as part of a business owners policy (BOP).

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your healthy fast food restaurant:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Healthy Fast Food Restaurant Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes. In many cases, the law will require your healthy fast food restaurant to own at least some form of business insurance (e.g., commercial auto or workers’ compensation).

However, even in places where insurance is optional, it is still important to acquire adequate business insurance for your healthy fast food restaurant in order to shield it from its many inherent risks.

Not necessarily. Certain exceptions may be written directly into your healthy fast food restaurant insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.