Quick-Service Restaurant (QSR) Insurance

A quick-service restaurant may need general liability, commercial property, business personal property, business interruption, workers' compensation, commercial umbrella, cyber liability, employment practices liability, commercial auto, and hired and non-owned auto coverage.

The right insurance program depends on your restaurant's service model, property, equipment, food inventory, online ordering, delivery relationships, drive-thru exposure, lease requirements, franchise requirements, and number of locations.

The cost of QSR insurance depends on factors such as sales, payroll, number of employees, property values, equipment values, location, lease requirements, delivery exposure, auto exposure, prior claims, coverage limits, and the policies included in the program.

A single independent location will usually be reviewed differently than a multi-location restaurant group or franchisee with higher sales, more employees, more equipment, and more customer traffic.

Cyber liability should be reviewed if your restaurant relies on online ordering, payment processing, POS systems, loyalty programs, delivery platforms, vendor accounts, scheduling software, payroll systems, or customer communication tools.

A cyber event can interrupt more than customer data. It can affect ordering, payments, payroll, delivery coordination, vendor access, and daily operations.

A drive-thru accident may involve general liability, property coverage, workers' compensation, umbrella liability, or more than one policy.

The answer depends on what happened, who was involved, whether there was damage, whether someone was injured, and how the insurance program is structured.

Business interruption insurance does not automatically cover every shutdown or loss of sales.

Coverage depends on the policy, the cause of the loss, and whether a covered event forces the restaurant to close or operate in a limited way. Some policies may also have waiting periods, exclusions, or limits that affect how lost income is handled.

Online ordering can create another issue. Your restaurant may still be physically open, but lose sales because online ordering, payment processing, delivery coordination, or a third-party platform is down. That type of loss is not always handled the same way as a property-related shutdown, so it should be discussed with your insurance agent before there is a claim.

A power outage does not automatically mean the lost income, spoiled food, or extra expenses will be covered.

The answer depends on the policy, the cause of the outage, where the outage occurred, how long the restaurant was affected, and whether the policy includes coverage such as utility interruption, food spoilage, equipment breakdown, business interruption, or extra expense coverage.

Your policy should be reviewed before a loss so you understand how power outages away from your property are handled.

Spoiled food may be covered under certain property, spoilage, equipment breakdown, utility interruption, or food contamination coverage, depending on the policy and the cause of loss.

Restaurants should review refrigerated inventory, prepared food, ingredients, and any coverage limits before assuming a spoilage claim will be covered.

Third-party delivery can create insurance questions even when your restaurant does not employ the driver.

Your own insurance program may still need to address delivery-related claims, auto accidents,  food issues, and contract requirements tied to the delivery platform.

Commercial auto insurance is usually reviewed when the business owns or leases vehicles.

If employees use their own vehicles for deliveries, supply runs, bank deposits, catering orders, or other work-related driving, hired and non-owned auto coverage should also be reviewed.

Multiple QSR locations may be able to be organized under one insurance program, depending on the business structure, locations, carriers, policies, and coverage needs.

This can help align renewals, limits, entities, property values, equipment, vehicles, employees, claims history, and coverage changes.

Yes. Concklin can help review insurance for QSR franchisees not included in our featured programs.

The review can include franchise requirements, lease requirements, property, employees, equipment, food inventory, delivery relationships, auto exposure, cyber systems, business income, and future growth.

Helpful information may include the restaurant address, business entity, lease requirements, franchise requirements, estimated sales, payroll, number of employees, building ownership, property values, equipment values, food inventory, delivery details, vehicle information, current policies, and prior claims.