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One-third of Americans eat fast food daily. To keep up with this demand, there are 210,877 fast food restaurants operating in the United States as of 2024.
If you are planning to add your fast food business to the figure above, you need to consider business insurance—specifically fast food insurance. This insurance is required in most states to open a fast food restaurant. However, in addition to being a legal necessity, it is also highly beneficial to your business.
- Fast food insurance covers you when an employee or customer gets injured, your equipment or property gets damaged, you have an unexpected business closure and more.
Types of Insurance Coverage for Fast Food Businesses
There are many different types of insurance for fast food businesses. Your business model may not require all the coverages listed below. Additionally, you should note that you can bundle multiple coverages into a Business Owners Policy (BOP) or a similar policy for a discount.
Commercial Property Insurance
Protects your fast food business’ property and its contents (equipment, inventory, furniture). Covers theft, vandalism, fire, or weather-related damage.
General Liability Insurance
Covers damage to other people’s property—not yours. Also covers if your business causes a customer bodily harm. For example, a customer slips on a spill.
Workers Compensation Insurance
Required in most states for any fast food restaurant with employees. It specifically covers an employee getting injured on the job—employee’s lost wages, rehabilitation and medical costs, and other fees associated with the unfortunate event.
Business Interruption Insurance
This coverage is commonly added to a Business Owners Policy. If your business temporarily closes due to theft, fire, acts of nature, etc, you will be reimbursed for the losses.
“I’m so happy we had business interruption coverage for our 24-hour closure. We thought we were doing a great job training new employees… until one decided to empty the fryer grease into a plastic bucket. What. A. Mess! The bucket melted and there was hot oil all over the floor. We are incredibly thankful no one was hurt because it could have ended up far worse. But we did have to close for a whole day to get the floors cleaned and air out the plastic fumes.” – Brock B.
Additional Coverage Options for Fast Food Restaurants
Food Spoilage & Food Contamination Coverage
Cover food replacement costs if food goes bad due to a power outage, appliance failure, etc. It also assists with costs associated with a foodborne illness outbreak, such as medical testing and equipment cleaning.
Product Liability Insurance
Covers if you get sued due to your food products causing bodily injury or property damage. Some states require fast food places to have this coverage.
Cyber Insurance
You should consider cyber insurance if you have an email list, loyalty program, or simply store customer information electronically. It covers the costs associated with a cyberattack or data breach. This includes but isn’t limited to, hiring a public relations firm for damage control, legal expenses, contacting customers, and more.
Commercial Auto Insurance
Commercial Auto Insurance covers bodily harm and vehicle damage from car accidents or other motor vehicle events. It is required for delivery cars or other commercial vehicles. Run a pizza shop or another eatery where employees use their own cars for deliveries? You need Hired and Non-Owned Auto Insurance, also known as HNOA Insurance.
How to Obtain Fast Food Insurance
You can get fast food insurance online in two easy steps.
1. Apply for Your Fast Food Insurance Quote
Fill out an online insurance application. It is one page and takes only a couple of minutes to complete. We will email you with quotes for the best insurance packages that fit your needs.
To fill out the application, you will need to know your:
- Business Information: Name, start year, description of operations.
- Federal EIN
- Contact Information
2. Purchase Your Insurance Policy
Check your inbox for an email containing insurance options for your fast food business. Ready to purchase? Follow the instructions to buy your insurance online. Once your payment clears, you will receive your Certificate of Insurance.
If you have any questions or want to customize your insurance policy further, don’t hesitate to call one of our insurance agents at 888-592-6631.
How Much Does Fast Food Business Insurance Cost?
The cost of fast food business insurance heavily varies depending on business size, location, coverage requirements, and more. Smaller fast food places may pay as little as $300 monthly, while larger restaurants pay thousands.
Factors that will increase your insurance cost include:
- Coverage: Higher coverage limits cost more. Your limit will depend on what you need covered, as well as how much coverage your state requires you to have.
- Number of employees: Most states require you to have Workers Compensation Insurance for employees. The more employees you have, the pricier the policy.
- Past insurance claims: Past insurance claims mark you as a higher-risk customer (more likely to make a claim). Therefore, you may pay more for insurance.
Benefits of Fast Food Insurance
Fast food insurance ensures you aren’t alone when unexpected events generate costly bills. It can’t stop accidents, injuries, and damage from happening, but it can help pay for them. Fast food insurance can assist with:
Food Spoilage
Say your restaurant loses power for an extended time, or you experience an appliance or mechanical failure. In these cases, your food is at risk of going bad. Food spoilage coverage can reimburse your food costs.
Food Spoilage & Food Contamination Coverage also supports your business if a foodborne illness outbreak occurs. It covers the costs of cleaning your equipment and medical tests for affected employees.
Property
Whether your kitchen equipment malfunctions, or high winds damage your building, there is a type of insurance coverage for that. Other types of insurance, like General Liability Insurance, cover if your business accidentally damages someone else’s property or causes a customer harm.
Lawsuits
Insurance financially frees you from paying fully out of pocket for legal fees, reimbursements, or compensation associated with a lawsuit.
For instance, say a customer gets food poisoning from eating a burger that wasn’t cooked properly, and they get sick. In this case, they may sue your business and request compensation if the sickness caused them to get hospitalized or miss out on work.
Employees
Fast food and counter jobs are the most common positions in the restaurant and food service industry. According to the U.S. Department of Labor’s Bureau of Labor Statistics (BLS), as of 2022, there were 3,410,100 people employed in these positions.
The quick-paced environment of a fast food place presents many safety risks. From hot grease in fryers to spills on tile floors, there are always ways an employee can injure themselves on the job. If this does happen, you want to make sure you’re covered.
Frequently Asked Questions about Fast Food Insurance
How Are Fast Food Restaurant Insurance Costs Calculated?
The cost of fast food restaurant insurance is calculated on an individual basis. The price is affected by many criteria, including business size, location, number of employees, coverage required, and past insurance claims.
Want to know how much your fast food restaurant insurance will cost? Get a free insurance quote today.
How Do I File a Claim If Something Happens?
To file an insurance claim, you will need to contact your insurance provider directly. Most accept phone calls, but others also have claim forms available on an app or online to speed up the process. If you use an online form, you can submit photos, videos, and documents that support your claim.
Can I Bundle Different Types of Insurance into One Policy?
Yes, you can absolutely bundle different types of insurance into one policy. This is a great way to streamline your insurance and save money.
Business Owners Policy Insurance is one the most popular insurance bundles for restaurant owners. It offers a combination of General Liability Insurance and Commercial Property Insurance. Another coverage that is commonly added to this is Business Interruption Coverage.
Learn more about Business Owners' Policies.
Sources
Topic: Fast food restaurants in the U.S. (n.d.). In Statista. Retrieved February 19, 2025, from
https://www.statista.com/topics/863/fast-food
Commercial & Business Insurance Guide. (n.d.). In JW Surety Bonds. Retrieved February 19, 2025, from
https://www.jwsuretybonds.com/business-insurance
Food and Beverage Serving and Related Workers. (n.d.). In Bureau of Labor Statistics. Retrieved February 19, 2025, from
https://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-serving-and-related-workers.htm