Catering businesses hire commercial kitchens to meet customers' demands. On the other hand, cottage food businesses use commercial kitchens because a home kitchen might not satisfy government health requirements. It’s also possible for restaurants to hire a commercial kitchen as they renovate their cooking space.
Commercial kitchen insurance protects against unique risks and liabilities associated with operating a commercial kitchen. From accidents, property damage, foodborne illnesses and employee-related claims, the right insurance coverage can provide financial protection and peace of mind. This article will explore the different types of insurance policies available for commercial kitchens and optional add-ons to enhance your protection.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $500,000/$1,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | No |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Yes |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
General liability insurance is a type of coverage that protects your business from third-party claims for bodily injury, property damage, or personal injury. It provides financial protection in case someone sues your commercial kitchen for accidents or injuries occurring on your premises.
General liability insurance offers a $1 million-$2 million per occurrence and aggregate limit.
Product liability insurance–This additional coverage extends protection to claims related to products you sell or serve, such as contaminated food or faulty packaging
Liquor liability insurance–If your commercial kitchen serves alcohol, this add-on covers incidents related to alcohol consumption, such as accidents caused by intoxicated customers
As a commercial kitchen owner, you understand the importance of delivering safe and quality food products to your customers. However, accidents can happen, and product liability insurance can help protect your business in case of unforeseen events. This commissary kitchen insurance covers claims arising from injuries or damages caused by products you sell or serve.
Product liability insurance offers a $1 million-$2 million per occurrence and aggregate limit. You might find this policy included in general liability insurance.
Yes, even if you use high-quality ingredients, accidents can still happen. Product liability insurance is essential for any business that sells or serves food products. It provides financial protection in case of unexpected incidents, such as allergic reactions, contamination, or packaging defects.
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $25,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $25,000 | $25,000/$500,000 | $15,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Included | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Included | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Included | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Your commercial kitchen is a valuable asset that needs protection against unforeseen events such as fires, theft, or natural disasters. Commercial property insurance is designed to safeguard your physical property and ensure that you can quickly recover from potential damages.
Commercial property insurance offers $25,000-$60,000 worth of coverage for the building and $15,000-$25,000 for the contents.
Equipment breakdown coverage–This add-on protects against the costs of repairing or replacing damaged equipment due to mechanical or electrical breakdown.
Food spoilage coverage–This provides coverage for the cost of food that has been contaminated or spoiled
Commercial property insurance is not legally required in all states. However, if you own the building or have invested in expensive equipment and inventory, protecting your assets with commercial property insurance is highly recommended. Without it, you could face significant financial losses in the event of property damage or theft.
| CoverWallet | NEXT (Best) | Hiscox | Thimble | The Hartford | |
|---|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $500,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $25,000 | $25,000 | $25,000/$500,000 | $75,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
To streamline your commercial kitchen insurance coverage and ensure comprehensive protection, a business owner's olicy (BOP) can be an ideal solution.
It combines multiple insurance coverages into a single package, providing comprehensive protection for your commercial kitchen. It typically includes general liability insurance and commercial property insurance, with the option to add additional coverages based on your specific needs.
A business owner’s policy has a $1 million-$2 million general liability coverage and $25,000-$60,000 commercial property coverage.
Employment practices liability insurance (EPLI)–This add-on provides coverage for claims related to employment practices, such as wrongful termination, discrimination, harassment, or other employment-related issues
Professional liability insurance–Covers claims arising from professional mistakes, negligence, or inadequate services provided by your commercial kitchen. If a customer alleges financial loss, property damage, or bodily injury due to your professional advice or services, this coverage can help cover legal costs and potential settlements
This commercial kitchen insurance policy is often an excellent option for small-scale commercial kitchens. It combines essential coverages into a comprehensive package, providing cost-effective protection tailored to the needs of your business. However, it's important to assess your specific risks and consult with an insurance professional to determine if a BOP is the right choice for your particular circumstances.
| NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
In a bustling commercial kitchen, your tools and equipment are vital for smooth operations. Protecting these valuable assets ensures uninterrupted service and minimizes financial losses. Tools and equipment insurance tailored for commercial kitchens can provide the necessary coverage.
Tools and equipment insurance provides $2,500-$25,000 you can use to cover the repair or replacement of each item covered.
Equipment rental reimbursement–If a covered event renders your equipment unusable, this add-on can help cover the cost of renting temporary replacements
To determine the value of your tools and equipment, conducting a comprehensive inventory of all items is important. Take note of the purchase price, age, condition, and any relevant receipts or documentation. You may also consider consulting with a commercial kitchen insurance professional to help assess the value and ensure adequate coverage.
Ensuring the safety and well-being of your employees is a top priority in any commercial kitchen. Workers' compensation insurance is essential to protect your employees and your business from the financial burdens associated with workplace injuries.
Employer's liability coverage–This add-on provides additional protection in case an employee files a lawsuit against the employer for negligence or unsafe working conditions
Return-to-work program–Implementing a return-to-work program as an add-on to your workers' compensation insurance can help facilitate the smooth transition of employees back to work after an injury, reducing downtime and productivity losses
This insurance protects employers from employee lawsuits related to work-related injuries or illnesses. However, there may be exceptions in cases of intentional harm or gross negligence. Maintaining a safe working environment and following all safety protocols are important to minimize the risk of accidents and potential liability.
If your commercial kitchen involves delivery services or goods transportation, adequate commercial auto insurance is crucial. This commercial kitchen insurance covers vehicles used for business purposes, protecting against potential accidents, property damage, and liability.
Hired and non-owned auto coverage–This add-on extends coverage to vehicles that are rented, borrowed, or used for business purposes but not owned by your commercial kitchen
Umbrella coverage–Umbrella insurance provides additional liability coverage that goes beyond the limits of your primary commercial auto insurance policy, offering extra protection in high-cost liability claims
If your employees frequently use their personal vehicles for business purposes, relying solely on their personal auto insurance may not provide adequate coverage. Personal auto insurance policies often exclude coverage for business-related activities. Commercial auto insurance is designed to specifically cover vehicles used for commercial purposes, providing comprehensive protection for your business and employees.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $42 | $504 | $0-$500 |
| Commercial property insurance | $70 | $840 | $1,000-$2,000 |
| Business owner's policy | $105 | $1,260 | $1,500 |
| Tools and equipment insurance | $49 | $588 | $500-$1,000 |
| Commercial auto insurance | $60 | $720 | $500-$1,000 |
| Workers compensation insurance | $92 | $1,104 | $2,500-$5,000 |
The average commercial kitchen insurance cost is $42 per month or $504 per year for a $1 million general liability policy. Here are some factors that affect premiums:
Coverage types–The specific types of insurance coverage you choose for your commercial kitchens, such as general liability, property, workers' compensation, and auto insurance, will impact the overall cost
Coverage limits–Higher coverage limits result in higher premiums. Consider your business's unique needs and assess the appropriate coverage amounts required for adequate protection
Kitchen size and operations–The size and scale of your commercial kitchen and the complexity of your operations can influence the insurance cost. Larger kitchens or those with specialized equipment may require higher coverage levels
Claims history–If your commercial kitchen has a history of frequent claims or incidents, it can affect the insurance premium. Insurance providers may consider your claims history as an indicator of risk
Location–The location of your commercial kitchen plays a role in insurance pricing. Factors such as crime rates, local regulations, and the prevalence of natural disasters in your area can impact insurance costs
In connection, here’s a table showing the cost of a $1 million general liability insurance from the best companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance for commercial kitchens |
| CoverWallet | $27 | $324 | Comparing commercial kitchen insurance quotes online |
| The Hartford | $29 | $348 | Workers compensation insurance for commercial kitchens |
| Tivly | $32 | $384 | Comparing commercial kitchen insurance quotes over the phone |
| Thimble | $35 | $420 | On-demand insurance policies |
| Hiscox | $37 | $444 | Commercial kitchen insurance with automatic renewal |
Get all the best quotes from leading providers in a click of a button!
Here are the best commercial kitchen insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability policy:
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance for commercial kitchens
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is a technology-driven insurance provider that covers various industries, including commercial kitchens. They aim to provide customizable insurance solutions to small businesses with options. Policies you can purchase are general liability, commercial property, workers compensation, BOP, and more.
Best for: Best overall; Fastest general liability insurance for commercial kitchens
Average cost: $25 per month
Our rating: 10/10
Wide choice of insurance carriers
User-friendly online platform
Proficiency in comparing quotes from multiple providers
Not an insurance company but an insurance broker
CoverWallet is a digital insurance platform that simplifies the insurance process for small businesses. They work with multiple insurance carriers to offer customized coverage options. While they can provide general liability, property insurance, and workers' compensation for commercial kitchens, reviewing their policies, coverage limits, and exclusions is important to ensure they meet your specific needs.
Best for: Comparing commercial kitchen insurance quotes online
Average cost: $27 per month
Our rating: 10/10
Established and respectable company
Comprehensive understanding of commercial insurance
Customizable commercial kitchen insurance programs
Limited add-ons to general liability insurance
The Hartford is a well-known insurance company that has been in operation for a long time. They offer a range of insurance products for businesses, including commercial kitchen insurance. Their coverage may include general liability, property insurance, and business interruption insurance. It's recommended to review their policies and consult with their representatives to determine the suitability for your commercial kitchen.
Best for: Workers compensation insurance for commercial kitchens
Average cost: $29 per month
Our rating: 10/10
Custom coverage for commercial business
Devotion to customer satisfaction
Provides personalized assistance to help you navigate your insurance requirements.
You need to talk to a representative to get quotes
Tivly is a digital insurance platform specifically providing tailored coverage options, a seamless quote process, and a user-friendly online platform for policy management. Tivly's focus on the food industry ensures they understand the unique risks commercial kitchens face. Call now to compare quotes over the phone.
Best for: Comparing commercial kitchen insurance quotes over the phone
Average cost: $32 per month
Our rating: 9/10
Coverage can be bought for specific durations, delivering flexibility.
Affordable pricing rates.
No long-term commitment
You can’t reach customer service by calling
Thimble is an insurance provider specializing in flexible, on-demand coverage for small businesses. They offer short-term policies customized to specific time periods and coverage needs. While Thimble can provide general liability insurance that may be suitable for commercial kitchens, reviewing their terms, conditions, and coverage limits is essential to ensure they meet your specific requirements.
Best for: On-demand insurance policies
Average cost: $35 per month
Our rating: 9/10
Expertise in risk management
Has a reliable economic foundation.
Efficient and responsive claims handling process.
Limited availability in certain states
Hiscox is a global insurance provider that offers specialized coverage for various industries, including restaurants and commercial kitchens. They provide coverage for property damage, general liability, and other specific risks food service establishments face. It's recommended to review their policies, coverage limits, and pricing to determine if they meet your commercial kitchen insurance needs.
Best for: Commercial kitchen insurance with automatic renewal
Average Cost: $37 per month
Our rating: 9/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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