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Fast food restaurant owners in California, as with the rest of the nation, know that liability risk now is greater than ever. In today’s legal climate, where people will often sue for little or no provocation or simply to try for an easy buck, it’s important to be protected so that your business is not put at risk.

Business loans frequently require insurance, but that doesn’t mean that you should necessarily opt for the minimum coverage. California fast food owners typically have only a few franchises, making them vulnerable to a large-stake legal case or other loss. To protect from suits from customers, general liability insurance is absolutely critical. Take for example the famous case of the McDonalds hot coffee which burned a customer. While widely mocked, the case was due to keeping coffee at slightly higher than normal temperatures – 180 degrees instead of the average 140 for coffee – in order to stay fresh longer. In the end, the plaintiff was awarded $160,000 in the case in compensatory damages, and $2.7 million in punitive damages. This would be enough to bankrupt many California fast food restaurant owners.

Other types of insurance are also important. Property insurance may cover some damages, but damages from disasters – such as the common California wildfires – may require supplemental insurance. Loss of business insurance is optional, but may save a business which loses sales due to being forced to close. Likewise, food contamination insurance can help by replacing food lost to spoilage, such as one caused by a power failure – a common event in California earthquakes. Consult with your insurance company for more information in meeting your needs for California fast food insurance.

by Phil