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Have a Fast Food Franchise? Make Sure Your Insurance is Up to Snuff

Aug 21, 2008
For fast food franchise owners and others in the restaurant business, especially where laws are quite different than the rest of the nation in California, fast food insurance is one of the areas you do not want to skimp on.

Insurance can protect your business from many problems including liability lawsuits, broken equipment, and other business problems. You will probably need insurance to satisfy the terms of your business loan, and even if you don't, no fast food restaurant owner should be without fast food insurance.

There are few types of insurance that you should get for your fast food business. Property insurance is important because it protects your building and its contents in case of fire, theft, or other loss or damage. Property damage is required by many types of loans and mortgages, and even if it is not you should still protect your investment.

Property insurance may not cover loss or damage because of natural disasters such as floods, earthquakes, power outages, and storms. You will need special peril insurance to cover these things and it is advisable to carry such a policy, especially if your business is in an area prone to these occurrences.

General liability is essential for your restaurant because it protects you from many types of lawsuits. If a customer slips and falls, gets sick after eating at your restaurant, or injures themselves in another way you will be protected. General liability is a must have in today's world where a lawsuit can bankrupt you unless you are covered.

You should also consider loss of business insurance. This type of insurance is optional, but something to consider. It covers you if you loose sales for a specific reason and can help you to recoup your losses. You will have to weight the benefits of this insurance against the cost of carrying it to determine if it is worth it for your restaurant.

Another type of insurance that is specialized for food establishments is food contamination insurance. If for some reason the food in your restaurant is lost because of a power failure or other occurrence, this type of insurance will cover the cost of replacing it. This type of loss can be devastating to a restaurant owner so it is important to consider this type of coverage.

In all states, but especially in California, fast food insurance is important to protect your business. Some types of insurance are required, and others are optional, so be sure you understand your restaurant's insurance needs and purchase the protection that fits your business best.
About the Author
All Franchise Insurance (http://www.allfranchiseinsurance.com/fastfoodquote.html) is a repository of companies offering California fast food insurance as well as franchise insurance in all other states across the U.S. The author, Art Gib, is a freelance writer.
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