Food Vendor Insurance: Cost, Coverage & Best Providers
Food vendor insurance is a policy, or a combination of policies, that food vendors need to protect their businesses from the financial loss of a claim. The average annual cost for the most common policy, general liability, ranges from $350 to $1,000, with a coverage amount of $1 million per occurrence, $2 million aggregate.
Food vendors are a broad category that encompasses concession stands, food carts, coffee carts, and food trucks—and, helpfully, Food Liability Insurance Program (FLIP) offers specialized coverage for all of those businesses. You can get a quote and purchase insurance from FLIP in just minutes.
Who Needs Food Vendor Insurance?
Any business selling food in nontraditional locations should consider insurance. This includes concession stands, street fairs, public sidewalks, and outdoor venues. Typical small businesses needing food vendor liability insurance include:
- Food trucks
- Food trailers
- Food carts
- Caterers
- Concessionaires
- Personal and private chefs
- Restaurants at an event
Most events, even one-day events, require food vendor insurance. Each venue has its requirements and may want to be listed as an additional insured on thecertificate of insurance (COI).If you are participating in an event, find out what type of insurance the venue requires because your regular policy, especially if you are a brick-and-mortar restaurant, may not have any off-premises coverage. In that case, you’ll need some form ofspecial event insurance.
Food Vendor Insurance Costs
The type of coverage you need depends on your business. If you are a food truck owner with employees, then you should considerfood truck insuranceandworkers’ compensation insurance.
Policy |
Annual Premium |
Coverage Amount |
---|---|---|
General Liability
|
$350 to $1,000 |
$1 million per occurrence and $2 million aggregate |
Business Owner’s Policy (BOP)
|
$900 to $3,000 |
$1 million per occurrence, $2 million aggregate. and $5,000 in property coverage |
Business Auto
|
$1,300 to $5,000 |
$500,000 combined single limit for bodily injury and property damage |
Inland Marine
|
$350 to $800 |
Dependent on the value of the business property |
In nearly every state, workers’ compensation is a required coverage for businesses with employees. However,workers’ compensation costis calculated using a formula that includes your industry, claims history, and the number of workers. Given, the price can vary significantly even within the same industry.
Many providers will only offer online quotes for smaller operations with revenue of less than $200,000. If you have a larger business, you will likely receive a higher premium and may need to speak with an agent to get a quote.
Insurance companies use a variety of factors to determine the premium, and the risk exposure your business creates is a big part of its evaluation. Anytime you get a quote, be prepared to answer questions related to the following:
- Claims history:Have you had any previous claims, especially in the last three to five years?
- Operations:What does your business do? Do you grill or fry? Do you regularly use liquified petroleum gas (LPG)?
- Location:What area does your food cart usually serve?
- Employees:How many full- and part-time employees are there? Did you perform background checks on them? Have any ever been accused of any crimes?
- Value:What physical assets do you need to insure, and what is their value?
When beginning the process of finding insurance, start on the right foot and answer the questions as honestly as you can. Truthful answers can help the provider accurately determine which coverage is best for your business.
Food Vendor Insurance Policies & Coverage
General liability insuranceandcommercial property insuranceare the two most common policies a food vendor will need. If the business has more than one employee, workers’ comp is likely required. If you transport your equipment or operate a food truck, then you will needcommercial auto insurance.Depending on how the policy is structured, you may need inland marine coverage to provide first-party protection for your cart and equipment.
This is the most common type of policy a food vendor will need to purchase, and the financial risk a liability poses to a business outweighs the cost of the policy. A general liability policy offers broad protection against claims for which your business is legally liable. This includes four categories: property damage, bodily injury, advertising injury, and reputational harm.
General liability can help you if someone trips on a hose attached to your food cart and then falls and is injured or if your cart becomes unsecured and rolls into another vehicle, causing property damage.
Your food cart, equipment, and trailer cost money. If something happens to one of them, you not only face the cost of repairing or replacing it but also the lost income while the item is not working. Therefore, you want to consider commercial property—it can provide coverage for your equipment. Coverage is usually on a named peril basis, meaning what happens to it has to be specified in the policy. Some named perils are:
- Fire:If your business suffers fire or smoke damage
- 盗窃:If someone steals some or all of your equipment
- Wind:If wind blows your cart over and damages it
大多数保险companies offer what is called aBOP.This is a combination of liability and property insurance, with some additional coverage like lost business income. Some BOPs for food vendors come with equipment breakdown coverage. If not, then look for this endorsement, which can help repair or replace damaged equipment.
Check out ourcomparison of BOP vs General Liability Insuranceto learn about how they stack up against each other.
食物卡车,拖车,和操作使用vehicle for business purposes regularly are going to need commercial auto. Just like a personal auto, you’ll be required to carry liability insurance that will handle property damage and bodily injury for accidents when it is your fault. Depending on the value of your vehicle, or if you have a loan, you’ll want to look into the first-party coverages collision and comprehensive.
Inland marine is coverage for equipment that moves around a lot. While most property policies will have some sort of coverage for equipment, the amount may be limited to either a specific location or listed locations on the policy. So, if your food cart or concession stand is in a different location regularly, then check your property policy to see if there is coverage and, if not, then get quotes for inland marine insurance.
Nearly every state requires you to carry workers’ comp if you have at least one employee. This important policy takes care of your employees if they are injured or become ill because of work-related activities by paying for medical bills and replacing their lost wages. It can also provide some protection for your business if the injured employee decides to sue.
Best Food Vendor Insurance Providers
- FLIP:Best overall provider
- Simply Business:Best for owner-operator vendors
- Next:Best for food carts
- CoverWallet:Best for concessionaires
- Progressive Commercial:Best for food trucks
FLIP: Overall Best Food Vendor Insurance Provider
FLIP developed an insurance program for caterers, concessionaires, market vendors, and food cart owners. You can purchase a policy online in 10 minutes or less, with premiums starting at $25.92 monthly. Because of the wide range of food vendors it insureds, multiple packages to choose from, ease of quoting, and immediate availability of policy documents, it is our best provider for food vendor insurance.
Simply Business: Best for Owner-operator Vendors
Online insurance brokerage Simply Business specializes in finding insurance for owner–operator vendors and microbusinesses, such as those with one to three employees. Helpfully, it works with many top-rated carriers to provide you with multiple options for insurance, making it easy for solopreneurs to compare insurance costs and find the right provider.
For detailed information, read ourreview of Simply Business.We cover use cases, insurance partners, and the quoting process among other things.
Visit Simply Business for a Quote
Next: Best for Food Carts
Food cart business owners don’t necessarily need as much coverage as other food vendors because their business is narrower in focus. Through Next Insurance’s quick quoting process, the provider offers affordable coverage options that are customized to fit different needs. If you are working at a special event or selling on the street and need immediate proof of insurance, Next makes that possible online or through its app.
OurNext Insurance reviewdiscusses the provider’s policies and coverages, costs, policyholder services, and more.
CoverWallet: Best for Concessionaires
Food vendors can often be found at special events, such as craft shows, farmers markets, and trade shows—and each show may require a different type or level of coverage for the event. If you are a concessionaire, you likely have several employees working for you. Online broker CoverWallet makes finding concession stand insurance easy by letting you select which coverage you need and by offering multiple carrier options for a business of your size.
You may be interested in reading ourreview of CoverWalletto learn more about the broker’s insurance options, quoting process, and use cases among others.
Progressive Commercial: Best for Food Trucks
Progressive is the number one insurer for commercial vehicles, per NAIC’s 2022 Market Share Report. It can insure nearly any type and size of food truck and, through its auto policy, provide coverage for installed kitchen equipment. Through its advantage program, it can provide general liability and other coverages for your business, making it the best insurance provider for food trucks.
Frequently Asked Questions (FAQs)
General liability costs can range from $350 to $1,000. Costs will vary depending on the size of your business, your cooking operations, and the type of food vendor.
If you have any employees, workers’ compensation will be required—unless you are in Texas or South Dakota. Beyond that, general liability may be required depending on how your business operates because most venues will require proof of general liability to let you sell on their premises.
Whether located in a brick-and-mortar building or operating as a mobile enterprise, food businesses require a license to operate. You will want to check with your local government to find out what is required and how to go about getting a license to operate. If you are starting out, you can review our guide onhow to start a food truck business.
You can purchase insurance directly from a provider, like Next Insurance, via a broker, like Simply Business, or from an agent. There is no right way—it depends on what works best for your business.
Bottom Line
Food vendor insurance is a policy, or combination of policies, that protects your business from losses you may face as a result of liability of first-party property claim. The core policies are general liability and property. You know, as a food vendor, that every day is different and presents unique challenges that require quality insurance tailored to your business. FLIP is the overall best provider for food vendor insurance and has the policy, coverage, and services you need.
User rating reference:
1Trustpilot | Simply Business