Do I even need fast food insurance? The fact that your customers choose to eat at home does not mean that takeaways are less risky when it comes to the safety of these customers. In fact, like other food businesses, takeaways need to provide adequate insurance coverage to protect their business from potential risks.
The main types of insurance that should be considered by those who own takeaway products range from public liability, business interruption, employer liability to content and inventory coverage. Each of these different types of fast food business insurance will protect you and your employees, and of course, those who decide to order food from you. So whether you’re making a sneaky burger or maybe know how to top up a pizza, make sure your business is covered by a specialist in fast food and takeaway insurance.
Why do I need fast food insurance when I already have business insurance?
Fast food is all here and now, but if the meat in the pizza is not cooked yet, it may be more than the food you deliver to a sick customer. If someone reports food poisoning, you will be covered by civil liability insurance. Even if you do not believe that it is your fault, you will still have to defend yourself, so we will cover the costs of litigation and any settlement.
Several types of insurance are advisable for a fast food restaurant. Employee compensation requirements for your employees vary depending on the state where you work. If your restaurant has commercial vehicles, you need insurance. The restaurant must provide protection against theft of property or cash. You can also purchase extended insurance coverage that protects against employee theft, arson, power outages, or sewer backups.
Will my car insurance cover me if I deliver fast food?
It is important to note that standard car insurance does not cover food delivery or takeaway food, even if your policy has a “business use”. For proper coverage under the law, you need a form of employment insurance and remuneration, which can be called hot fast food delivery insurance. Why? Because providing a delivery service, especially one that depends on time, increases your risk profile in the eyes of the underwriter. This additional risk is not covered by the standard insurance policy. If you are going to use your car for food delivery within the UK, you will need a policy that extends the validity of your car insurance for fast food delivery.
What are the types of fast food insurance?
· General risk insurance
Risk insurance will replace your restaurant building, equipment and facilities. Risk insurance usually covers losses from fire, weather, etc. Coverage should apply to your outdoor signage and landscaping. You can purchase insurance that covers the replacement value of your property or the fair market value of your property. If you choose to insure at market value, your insurance costs will be lower, but your contribution to the replacement of the property will be higher.
· Liability insurance
Liability insurance protects against other people’s claims to your property. The two main types are product liability insurance and premises liability insurance. Product liability insurance covers claims related to the products you sell, such as food poisoning claims. Liability insurance covers events in the restaurant, such as injuries from slipping and falling.
· Cyber liability insurance
Restaurants that maintain a customer database and accept credit card payments should consider cyber liability insurance. This coverage helps compensate for the 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 for restaurant owners is breaking the system they use to process credit cards. Although the systems are encrypted, if someone breaks into the network to access sensitive customer data, it can be a big loss for the restaurant.
· Business Interruption Insurance
Several types of insurance replace the income that your restaurant loses if you have to temporarily close the business. Loss of income insurance, business break insurance and food spoilage insurance all fall into this category of coverage. Many of your operating expenses, such as rent and deductibles, continue regardless of whether your restaurant is open. Business interruption insurance provides the funds to pay for these costs.
What does fast food insurance cover?
- Damage you or your employee do to other people’s things in your fast food restaurant (remember, if you have staff, you must have employer’s liability insurance – this is a legal requirement)
- Injuries that you or your employee inflicted on someone else while working or as a result of your work
- An illness suffered by a customer as a result of eating or drinking in your fast food restaurant
- Accidents and injuries related to food delivery (including theft, damage to the client’s property, slipping and travel), but not vehicle-related incidents
Where does fast food insurance come in handy?
- A customer slipped on a ketchup spill on the floor of your restaurant and broke his wrist during a fall
- Your staff member accidentally spills hot tea on a customer who is waiting to receive an order
- The customer is suing you for giving him spoiled food, or because he had an allergic reaction to your takeaway