Food is Big Business But Fast Food Insurance Costs Can Always Be Small
Busy lives but less cash to splash have collided and takeaways have taken off when it comes to sales. 2015 data from the UK’s largest takeaway ordering app Just Eat, suggests takeaways constitute 12.5% of the food services industry. And it’s a sector that is worth a massive £9 billion a year.
The reasons? Mobile ordering makes it easier than ever and we’re too busy to cook, but can’t afford to eat out. Ordering a takeaway online provides the perfect solution to the time and cash poor British public.
It’s a massive area of growth. If you’re running a takeaway business or thinking of setting one up, it can be lucrative. But as with all businesses, it’s not without risk. Luckily these risks can be mitigated with the right fast food insurance …and it won’t have to cost a fortune.
What fast food insurance do I need for my business?
Employer’s liability insurance
When it comes to takeaways, speed is key. Mix that rushing around with spilled liquid, knives and hot oil and you’ve got a recipe for accidents. Put effective health and safety procedures in place and take out appropriate Employer’s liability insurance to limit risk.
It pays your legal expenses if a member of your team makes a claim against your business for injury or damage. As well as protecting you financially, employer’s liability insurance is a legal requirement. You’ll need to have it if you employ any member of staff, even if they are part-time. Without it, you could be fined.
Public liability insurance
Any business that deals with the public is at risk of being sued by them for injury. If you’re running a food-related business, this risk becomes even greater. Even with the best health and safety procedures in place, mistakes can happen and food poisoning can occur. And claims arising from allergic reactions to mislabelled food are also a very real threat to takeaway businesses. Both food poisoning and allergic reactions can result in pay-outs totting up into the tens of thousands of pounds. Public liability insurance also protects you from other claims against you from the public for example slips and trips or damage to their property.
Legal insurance
This covers the costs of your legal fees if you need to take action against someone, such as an employee or supplier.
Commercial vehicle or fleet insurance
From vans to Vespa’s, If you run your own fleet of delivery vehicles you’ll need comprehensive insurance to keep you road legal and to get you back on the road with the minimum fuss if something does go wrong. It’s worth considering breakdown cover at the same time, as there are savings to be had by purchasing it with your insurance as well as the reassurance that if you do breakdown, you’ll be back on the move as quickly as possible.
Buildings insurance
You’ll need commercial premises insurance even if you live at the same address as your business. Running a business from an address puts it at greater risk of things like fire and theft.
Contents insurance
Tot up the cost of replacing the specialist equipment that you use for your takeaway business. From commercial fryer to industrial ovens, these things don’t come cheap, so make sure it’s insured. Don’t be tempted to skimp here. Takeaway businesses are at increased risk of fire, and if you’re unable to replace your equipment, you could find your business is unable to continue.
Stock cover
How much of your stock is kept in a fridge or freezer? What would happen if this equipment suddenly failed or there was a power cut. Stock cover will pay out the value of stock lost, so you can quickly replace it and continue trading with no impact on your cash flow.
Business interruption insurance
Severe fire or flood stopped you trading? If your business has to shut down for a period of time, business interruption insurance will help take care of the essential bills. That means you can still pay the wages and suppliers even if you’re left with no source of income.
Cutting the costs for fast food insurance
Premiums vary from insurance provider to insurance provider, so it’s worth comparing a few to get the best deal you can without compromising on your cover. At Park Insurance we have 30 years of experience in the catering industry and close links with insurance providers. We can do the searching for you and know exactly what questions to ask to make sure you don’t leave your business underinsured and open to risk.
Get a quote today.