Business Owner’s Policy (BOP) BOP coverage bundles general liability, commercial property, and business interruption insurance into a single policy. For quick service restaurants, the average BOP premium is typically $188 per month ($2,261 annually), substantially less than purchasing policies separately. 

This foundational coverage addresses slip-and-fall claims, property damage from kitchen fires, and lost income during forced closures. Equipment protection under BOP includes fryers, grills, refrigeration units, and point-of-sale systems which is the infrastructure that keeps service flowing during rush periods.

Workers’ Compensation Insurance QSR employees face elevated injury risks from hot oil, repetitive motions, and fast-paced environments. Workers’ compensation insurance typically averages $110 per month ($1,321 annually) for fast food restaurants, with rates calculated at $1.06 per $100 of payroll.

Deep-fat fryers remain the leading cause of kitchen burns according to OSHA, making this coverage essential for protecting staff and shielding businesses from workplace injury lawsuits. Coverage extends to medical expenses, lost wages, and rehabilitation costs when employees suffer burns, cuts, or slip-and-fall injuries.

General Liability Insurance General liability protection within BOP addresses third-party bodily injury and property damage claims. The average premium is usually about $108 per month ($1,296 annually) with standard limits of $1 million per occurrence and $2 million aggregate. 

Coverage responds when customers slip on wet floors, suffer allergic reactions, or sustain injuries from hot beverages. Product liability protection is typically included with general liability. This defends against foodborne illness claims, with the CDC receiving approximately 800 foodborne illness reports annually from restaurants.

Commercial Property Insurance Property coverage protects equipment and inventory from fire, theft, vandalism, and weather damage. With more than 5,000 restaurant fires reported annually resulting in an estimated $116 million in property damage, and cooking accounting for about 64% of restaurant fires, this protection proves critical. 

Equipment breakdown coverage is essential for QSR operations because it addresses sudden failures of fryers, refrigerators, and grills that can halt service and spoil inventory. The average annual premium for this is around $740.

Product Liability & Food Contamination Insurance Product liability coverage defends against claims that food products caused customer illness or injury. This protection extends throughout the supply chain, addressing contamination, allergen exposure, and food poisoning allegations. The premium range for this is $200 to $500 annually depending on menu complexity and volume.

Commercial Auto Insurance For QSRs offering delivery services, commercial auto insurance is mandatory for business-owned vehicles. The average cost is about $111 per month ($1,329 annually). 

Coverage addresses property damage and medical expenses from accidents involving delivery vehicles, plus theft, vandalism, and weather damage. For restaurants where employees use personal vehicles for deliveries, hired and non-owned auto (HNOA) insurance provides liability protection.

Equipment Breakdown Insurance Specialized equipment breakdown coverage protects against sudden failures of essential kitchen equipment, electronic data processing systems, and production machinery. This endorsement to BOP addresses power surges, mechanical failures, and electrical system malfunctions that standard property coverage excludes.

Employee Dishonesty Coverage Cash-handling risks in high-volume QSR operations require employee dishonesty protection. This coverage can be added to BOP to defend against cash register theft and fraudulent activities.