You might be looking for food vendor insurance to safeguard your funds from the potential dangers of selling food to clients, whether you run a food truck, a catering service, or sell products at a farmer’s market. We’ll discuss what is covered by food vendor insurance, how much it costs, and where to get the best plan for your requirements. You can quickly and easily obtain coverage from many insurance providers so that you can establish your food business with confidence right away.
Do I Need Food Vendor Insurance?
Yes, if you sell food, you must have insurance for food vendors. Food contamination can happen even with careful handling and preparation. An employee can suffer a workplace injury or unintentionally damage the event venue. If you don’t have the proper insurance coverage, these risks could lead to expensive lawsuits that would force your company into bankruptcy.
Some coverages are even mandated by law, such as the workers’ compensation insurance most states require for food vendors with a certain number of employees and the commercial auto insurance most states require if you operate a food truck or trailer on public roads or deliver food in a vehicle.
The good news is that many businesses provide coverage at reasonable prices. Combining several plans will frequently result in a discount, and picking a bigger deductible will help keep your costs cheap.
What Is Food Vendor Insurance?
A collection of insurance plans known as food vendor insurance are necessary to run a food company, like a food truck or concession stand. These are the most typical insurance coverage requirements for food sellers, while different types of food vendors may have varying needs.
General Liability Insurance
Legal costs and medical expenses associated with allegations that your company is to blame for inflicting property damage, personal injury, or advertising injury are covered by general liability insurance. Product liability insurance, which defends against lawsuits involving food poisoning, is frequently included in general liability insurance. Event planners frequently want general liability insurance from food suppliers.
Commercial Property Insurance
You will require commercial property insurance if you own a business location or if you have pricey equipment installed in a rented facility. This covers the cost of repairing or replacing your equipment or property after a covered loss, such as a vandalism or cooking fire. Commercial property insurance normally does not cover earthquakes and flooding, therefore some business owners may decide to get separate coverage for these risks.
Business Owner’s Policy
A business owner’s policy (BOP), often known as a general liability and commercial property policy, is a practical option for some food providers. Business interruption insurance, which assists in replacing net revenue in the event that your company must shut down due to a covered loss, is frequently included in these plans.
Inland Marine Insurance
Equipment that remains in your place of business may be covered by a commercial property or company owners policy, but it won’t cover items you carry to events. Computers, kitchenware, and other items that need to be repaired or replaced while being transported can be covered by inland maritime insurance.
Businesses that keep client data will need cyber liability insurance, which helps pay to repair your company’s reputation, lost or corrupt data, or lost business income after a cyber attack. This insurance covers several liabilities. Cyber insurance will shield you from legal action if, for instance, you keep credit card information for your catering clients and your company has a breach.
Food Vendor Insurance Cost
The price of food vendor insurance is determined by the coverage options you select, the coverage limits you choose, the size, location, and number of employees of your business. While company owner’s plans, which include property coverage, normally start at $300 to $500 per year and can reach considerably higher depending on your needs, the lowest general liability policy we could locate was $299 per year through FLIP.
Typically, the annual cost of commercial auto insurance for a typical business vehicle ranges from $600 to $2,400. Additionally, according to Next, the annual cost of workers’ compensation insurance might be as little as $146.
Remember that you can combine your insurance policies with some firms to receive discounts. Choosing an insurance provider that provides all the coverage your business requires typically makes the most sense.
Best Food Vendor Insurance Companies
Best for Cheap Package Coverage: FLIP
- bundles of insurance beginning at $299 per year
- includes coverage of tools and equipment
- provides alcohol event coverage
- Free additional insureds indefinitely
- Does not provide commercial auto
- Property coverage is limited.
FLIP offers affordable general liability insurance that covers tools and equipment as well as some limited property damage for rented properties for food sellers without their own physical location. You can purchase it for specific occasions or add liquor liability for as little as $299 a year. Additionally, adding event planners as additional insureds is completely free. FLIP does not, however, provide coverage for common commercial property or commercial auto.
Best for Flexible Coverage: Thimble
Thimble makes it easy to get coverage in just a few minutes. You can choose to buy coverage for a shorter time period or pay for insurance on a monthly basis. You can also put your coverage on hold or change it at any time to account for changes in the weather. Policyholders have nothing but good things to say about the customer service, which includes live chat help, and the coverage is the more robust occurrence form. On the other hand, the company does not offer commercial car insurance or insurance for liquor liability to its clients.
- Buy insurance by the hour, day, or month
- Buy coverage entirely online in minutes
- Occurrence-form coverage
- Doesn’t offer commercial auto
- Doesn’t offer liquor liability
Best Business Owner’s Policy: Nationwide
Nationwide has a good reputation and offers full business owner’s insurance (BOP) that is made for the hospitality industry. This company offers insurance for workers’ compensation, covering for damage, and more, in addition to insurance for business cars. Still, you will need to talk to an agent if you want to know specifics about your coverage or buy insurance.
- Comprehensive BOP includes equipment breakdown coverage
- Highly ranked for customer satisfaction
- A+ (Superior) financial strength rating
- Must speak with an agent to start your policy
Best for Commercial Auto: Progressive Commercial
Progressive policyholders pay an average of $160 per month for business car insurance. The company offers a wide range of coverage options and discounts, such as a telematics program that gives a discount for signing up and free tools for managing a fleet. Commercial car insurance from Progressive costs $160 a month for policyholders.
If you get your liability insurance from a different company that doesn’t offer professional auto insurance, Progressive is a great choice for the cars you use for your business. Along with workers’ compensation and general liability insurance, the company gives food sellers fewer choices for specific coverage.
- Largest provider of commercial auto insurance
- A+ (Superior) financial strength rating from AM Best
- Offers a variety of discounts
- Covers trucks and trailers
- Fewer specialized coverages
How Much Does Food Vendor Insurance Cost?
The cost of food seller insurance will depend on a number of things, such as how risky your business is, the types of coverage you choose and their limits, where your business is located, and how many people work for you. FLIP has a plan that starts at just $299 and includes general liability coverage and some property coverage. However, some food sellers may need higher limits or more coverage, like business auto coverage.
What is insurance for a food vendor?
Food seller insurance is a group of insurance policies that most food vendors need to run their businesses. Almost all food vendors need general liability insurance and workers’ compensation insurance if they have staff. Some businesses may also need inland marine insurance, liquor liability insurance, and commercial car insurance.
How much does food truck insurance cost?
Food truck insurance starts at about $299 per year for a simple set of basic coverages like general liability and products-completed operations coverage (in case your food hurts someone). But food trucks that drive on public roads or park on them will also need business car insurance. Rates can change a lot based on what kind of truck it is, how much its equipment costs, and where it is parked. Some food trucks may also need extra insurance, like workers’ compensation and liability insurance for serving alcohol.
How We Chose the Best Companies to Cover Food Vendors
We compared 19 insurance companies that offer food-specific liability coverage to find the best ones. We looked at cost, availability, customer happiness, coverage, the buying process, and the stability of the company. We liked companies that made it easy and cheap to buy food liability insurance, had happy customers, offered full coverage, and were financially stable. For more information, please look at our full method.