Insuranks
Insuranks

Food Liability Insurance: Cost & Quotes From $7

For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!


For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

AND then, get even more quotes over the phone!icon

Speak with a Representative Now Call 866-929-3479

One of the crucial steps you have to take when starting or managing a restaurant, catering, food cart, food truck, food trailer, deli, or cookery business is getting liability coverage-an inclusion in food insurance. There are many types of liability insurance. But note that all serve the same core purpose-protect you from specific claims third parties file.


Liability insurance is a common inclusion in tailored insurance for different businesses in the food industry whether they be a brewery, ice cream truck, wine retailer, winery, pizza delivery, food delivery, juice bar, grocery store, or a coffee shop.


This guide will take you into the specifics of food liability insurance that’s commonly found in tailored food service insurance. Know how it works, how much it costs, and know which carriers provide the best coverage at the most reasonable rates.


Also read:

Food Liability Insurance

As said earlier, liability coverage in food insurance for small business such as farmers’ markets, bakeries, bars, distilleriesvendors, vending machine businesses, concessions, and liquor stores comes in different types. Nonetheless, the most common food liability insurance coverages available are:


General Liability Insurance for Food Business

Underwriters offer food liability insurance in the form of general liability coverage as the primary inclusion in food and beverage insurance.  This food business insurance  provides protection against the following perils:

  • Third-party personal injuries-Your food business’s operations might inflict injuries-cuts, lacerations, burns, foodborne illnesses, or even death to other food vendors, customers, visitors, and other third parties. If aggrieved parties decide to file a claim, general liability insurance will cover medical expenses and other associated costs 

  • Third-party property damage-Not only injuries but your food business’s operations can also cause property damage to third parties. If a claim is filed, this food service liability insurance will recompense the affected parties on your behalf 

  • Legal expenses-When aggrieved third parties decide to sue after experiencing property damage or personal injuries due to your food business’s fault, general liability insurance for selling food will shoulder attorney fees, administrative costs, settlements, and other legal expenses 


General liability insurance is very comprehensive. Note that this small food business insurance coverage doesn’t only protect you from personal injury claims or property damage claims. Optional policies are included in the language of general liability coverage. These are:

  • Rented premises liability coverage-General liability insurance made part of a tailored food catering insurance plan comes with rented premises liability coverage. Rented premises liability coverage will reimburse the owner if a rented or leased venue is damaged or destroyed due to a food business’s fault

  • Advertising injury coverage-Advertising injury coverage will cover lawyer fees, administrative costs, compensatory payments, and other legal expenses  if your food business is sued for slander, libel, copyright infringement, and other types of advertising or reputational harm 

  • Products and completed operations coverage-This optional food handlers insurance coverage will take care of attorney fees, administrative costs, settlements, and other legal expenses when a past customer claims a completed product or service of your food business caused personal injuries or property damage 


Note that general liability insurance will only take care of the above-mentioned claims filed by customers, vendors, and other third parties. This will not cater to claims filed by employees and other similar business entities. 


Public Liability Insurance for Food Business

Some food businesses find general liability insurance too much for the risks they face. You might see the coverage the same way too and look for another available protection. In this case, go for public liability insurance. 


Just like general liability insurance, public liability insurance for food business covers personal injury claims and property damage claims filed against your food business. However, its scope is more limited because you can’t add optional advertising injury coverage, rented premises liability coverage, and products and completed operations coverage to it. 


Food Product Liability Insurance

Customers might experience allergies upon consuming the product of your food business. It’s also possible for them to experience foodborne illnesses and sue your business for improper food preparation or food poisoning. This peril falls out of the scope of general liability insurance. You need another food product insurance coverage-particularly product liability insurance.


Food product liability insurance will take care of attorney fees, settlements, administrative costs, and other legal expenses if your food business caused or allegedly committed food poisoning or food mishandling. But note that in other industries, this insurance also covers claims filed because a delivered product has:

  • Errors in design

  • Errors in labeling

  • Manufacturing defects


Product liability insurance is available as a stand-alone policy. But note that this is sold by food processing insurance companies as additional coverage to general liability insurance. 


Professional Liability Insurance for Food Service Businesses

Insurance companies will offer professional liability insurance if your business doesn’t only sell food but also offer food-related services. Professional liability insurance’s job is to cover attorney fees, settlements, administrative costs, referral fees, retainer fees, contingency fees, and other legal expenses when a customer sues for:

  • Misrepresentation

  • Violation of fair dealing

  • Breach of confidentiality

  • Violation of good faith

  • Negligence

  • Other acts constituting errors and omissions


Liquor Liability Insurance for Food Business

Liquor liability insurance is useful if your food business sells alcoholic products. This will cover attorney fees, settlements, administrative costs, and other legal expenses if an intoxicated guest holds you responsible for personal injuries or property damage. Coverage also applies if your business is sued for serving liquor to minors. Note that not only businesses but professionals such as bartenders purchase liquor liability insurance. 


How Much Money Can You Get from Food Liability Insurance Policies?

General liability insurance for food business provides $1 million - $2 million coverage for personal injury claims, property damage claims, and legal defense costs. But note that you can find insurance companies underwriting general liability insurance having $500,000, $3 million, or $5 million coverage. 


Advertising injury coverage, rented premises liability coverage, and products and completed operations coverage has a $100,000-$1 million limit depending on the insurance company.


Professional liability insurance provides $1 million coverage. But note that you can ask the carrier to increase limits to tailor the coverage to the exposures your food service business is facing. 


Product liability insurance can provide $500,000-$1 million minimum coverage.

Compare Cheap Food Liability Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

AND then, get even more quotes over the phone!icon

Speak with a Representative Now Call 866-929-3479

Other Food Business Insurance Policies Underwritten by Carriers

Liability policies don't only comprise tailored food insurance for small businesses. Other business insurance policies are included such as commercial auto insurance, commercial property insurance, and more.


Commercial Property Insurance for Food Businesses 

Insurance companies encourage food businesses owning, renting, or leasing a commercial space to include commercial property insurance in their tailored coverage for selling food. Commercial property insurance provides protection against:

  • Building damage-When your food business’s commercial space (e.g. warehouse, office, etc.) becomes damaged due to fire, theft, vandalism, and other covered perils, commercial property insurance will cover the repair or replacement of roofing, windows, doors, flooring, siding, etc. 

  • Building destruction-Fire or extreme weather will destroy your food business’s building and nothing will be left. In this situation, commercial property insurance will cover reconstruction expenses so that you can recover and resume business operations 


Commercial property insurance doesn’t provide help if your food busness’s commercial space incurred damage or got destroyed due to floods, earthquakes, and mudslides. To get coverage, you need to purchase mudslide insurance, earthquake insurance, and flood insurance as stand-alone policies or endorsements. 


Stocks and contents coverage as well as business equipment and tools coverage are additional inclusions in commercial property insurance. Here’s how they work:

  • Stocks and contents coverage-Stocks and contents coverage will cover losses if furniture, fixtures, lightings, business documents, and other valuable items become lost or damaged due to fire, theft, vandalism, extreme weather, and other covered perils

  • Business equipment and tools coverage-When stoves, mixers, slicers, and other food preparation equipment or tools become lost or damaged due to fire, theft, vandalism, and other covered perils, business equipment, and tools coverage will take care of losses 


Note that commercial property insurance and its inclusions don’t automatically provide coverage for all of your business’s tangible assets. Coverage applies only to business properties you name or schedule in the policy’s terms. Also, the cost of premiums is determined by how many business assets are covered. 


Food Business Workers Compensation Insurance 

Your food business will employ people. The thing is work-related injuries and diseases are very common. Workers will sustain cuts, burns, lacerations, fractures, and other injuries. If not these, your employees can get sick due to salmonella, campylobacteriosis, listeria, and other foodborne illnesses


When employees or an employee suffers from a work-related injury or disease, your food business must provide help. This is a mandate of law and you need to provide compensation no matter how costly. To avoid using business funds or personal funds when doing so, get workers' compensation insurance that covers the following:


  • Medical treatment/procedure-Workers compensation insurance will take care of the expenses for surgeries, therapies, and other medical treatments/procedures your food business’s employee need to fully recover from a work-related injury or disease 

  • Hospitalization-Workers' compensation insurance will cover bills if doctors ask your employee to stay in the hospital for days, weeks, or months for intensive care 

  • Medication-Work-related injuries or diseases won’t heal fast by themselves. Your employee will need medicines to heal faster. Workers' compensation insurance covers this by providing money for the purchase 

  • Rehabilitation-Workers' compensation insurance also functions to cover rehabilitation costs if your employee experiences bodily impairment due to a work-related injury or disease

  • Lost income compensation-Your employee will ask you to cover lost income if he or she can’t work due to a work-related injury or disease. Workers' compensation insurance shoulders the responsibility on your behalf. This insurance provides a weekly allowance as coverage for lost wages. The amount is equal to two-thirds or 67% of your food business’s employee’s average weekly wage. 

  • Death benefits-When your employee dies due to a work-related injury or disease, workers' compensation insurance will cover funeral expenses and provide a financial aid to dependents 


The coverage of workers' compensation insurance applies to full-time and part-time employees. Contractors are also covered depending on which state your food business is operating. Individuals, excluded from the coverage, are volunteers.


Not getting workers' compensation insurance is punishable by law. Punishment can be fines or penalties depending on your food business’s location. That said, here are some examples:

  • Food businesses in Arizona not having workers comp face a class 6 felony punishable by one-year imprisonment. Authorities also impose a $1,000 or $10,000 fine. 

  • Food businesses in Maryland that do not purchase workers' compensation insurance face a fine not exceeding $10,000

  • Nevada authorities issue a stop-work order and a $15,000 fine on food businesses that fail to cover employees with workers' compensation insurance 

  • Food businesses not getting workers' compensation insurance for employees face civil and criminal charges. The civil penalty is a $250 fine multiplied by the days of non-compliance (cannot exceed $50,000). On the other hand, criminal penalty is a $1,000 fine, six-month imprisonment, or both 


Commercial Auto Insurance for Food Business

Commercial auto insurance is a coverage for the vehicle registered under your food business’s name. You can also use this to cover a personal vehicle used for your food business’s activities. Basic commercial auto insurance provides the following protections:

  • Auto liability coverage-Auto liability coverage in commercial auto insurance will cover medical expenses or reimbursements if your food business’s vehicle caused an accident resulting in injuries or property damage to third parties 

  • Physical damage coverage-Physical damage coverage is available as a collision or comprehensive coverage. Collision physical damage coverage will take care of parts repair or replacement if your food business’s commercial vehicle incurred damage after crashing into another vehicle or object. As for comprehensive physical damage coverage, this covers costs if fire, theft, vandalism, and other covered perils damaged your food business’s vehicle 

  • Non-owned/hired auto liability coverage-Non-owned/auto liability coverage will cover the accidents caused by a vehicle your food business hired. If employees are using their personal vehicle on your business’s behalf and an accident happens, non-owned/hired auto liability coverage may also provide help. 

  • Emergency roadside assistance coverage-Emergency roadside assistance coverage will reimburse what you spend on tire rental, battery replacement, battery jump-start, and other related services 


Equipment Breakdown Insurance

Equipment breakdown insurance will cover repair or replacement if the equipment used in food production and preparation is destroyed due to use. 


Employer’s Liability Insurance

Employer’s liability insurance covers attorney fees, administrative costs, and other legal expenses if an employee sues you for negligence after sustaining a work-related injury or disease. You don’t have to get this if you have workers' compensation insurance and conduct business operations in a state providing an “exclusive remedy” to employers. 


Business Interruption Insurance

If perils force you to suspend business operations, business interruption insurance covers employee wages, taxes, loans, mortgages, and other operational costs while revenue isn’t generated.


Food Manufacturing Insurance

Tailored insurance for food manufacturing businesses has general liability insurance, commercial property insurance, workers compensation insurance, product liability insurance, and commercial auto insurance having bobtail, non-trucking liability, and unladen insurance coverages as inclusions. Businesses that can be covered through food manufacturing insurance are candy factories, chocolate factories, large bakeries, etc. 


Cottage Food Insurance

Home-based food manufacturers such as small candy makers, chocolate makers, pastry professionals, and others can get coverage through cottage food insurance. Liability insurance policies for cottage food businesses included are general liability insurance with product liability coverage, and professional liability insurance. Aside from cottage food liability insurance, there are also commercial property insurance with equipment breakdown coverage, and workers compensation insurance. Though usually available as a long-term plan, you’ll find insurance companies selling cottage food insurance as a monthly or weekly coverage. 


Restaurant and Bar Insurance

Insurance policies specially underwritten for restaurants and bars offer general liability insurance with liquor liability coverage as a primary inclusion. Additional policies available in restaurant and bar insurance are commercial property insurance with stocks and contents coverage, workers compensation insurance with employer’s liability coverage, and business interruption insurance. 


Commercial Kitchen Insurance

Commercial kitchen insurance has general liability insurance with rented premises liability coverage and products and completed operations coverage. Other recommended coverage is commercial property, workers' compensation, and commercial auto. Equipment breakdown coverage can be added as a stand-alone policy. 


Food Distributor Insurance

Food distributor insurance is composed of general liability insurance with stocks and contents coverage and advertising injury coverage, commercial property insurance, workers compensation insurance, and motor carrier policy having non-trucking liability and bobtail insurance. 


Home Food Business Insurance

Insurance especially made for home food businesses allows the policyholder to enjoy the protection general liability insurance provides. Equipment breakdown insurance can be added to home food business insurance as additional protection.

Rank and Review Insurance Companies

Help others make better decisions

Show more

Food Business Insurance Cost 

Food business insurance cost depend on your location, revenue, number of employees, business history, claims history, and other factors. But still expect your food liability insurance cost ( a general liability insurance, that is) to be $27 per month or $324 per year for a $1 million coverage. Below are the rates of the best food business liability insurance companies. 


Cost per MonthCost per YearBest for
FLIP$24.92$299.04Food business insurance with dedicated custom limits
CoverWallet$25$300Food liability insurance quotes comparison online
NEXT$26$312Food businesses looking for liability insurance having foodborne illness coverage
Hiscox$28$336Food businesses looking for worldwide liability coverage
Thimble$30$360Short-term food liability insurance


best way to get an estimate of your rates is to compare quotes. Start here by clicking the "Get Quotes" button and filling up the form. 

Compare Cheap Food Liability Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

AND then, get even more quotes over the phone!icon

Speak with a Representative Now Call 866-929-3479

Best Food Liability Insurance Companies 

Here are the best food liability insurance companies that provide the best coverage for food businesses. Read to know their pros, cons, and monthly pricing for a $1 million general liability coverage. 


CoverWallet Food Liability Insurance

 

Pros

  • Get insured online immediately

  • Compare quotes from different carriers for an informed purchase

  • Stable rates

  • Provides more than 20 types of  coverage for more than 10 kinds of food businesses 

Cons

  • CoverWallet doesn’t underwrite the insurance it sells

 

CoverWallet is an insurance broker with an online quotes comparison platform you can use to find carriers providing general liability insurance and other coverages for food businesses. Just provide some basic business information and this company’s platform will send you the quotes of carriers. Note that CoverWallet allows you to add clients or landlords as additional insureds, pay premiums online, and get a certificate of insurance for free:

 

Best for: Food liability insurance quotes comparison online 

Average cost: $25 per month 

Our rating: 10/10


Hiscox Food Liability Insurance

Pros

  • Over 400,000 businesses choose Hiscox

  • Worldwide coverage

Cons

  • Many complain that Hiscox doesn’t do much when it comes to resolving customer disputes 


Hiscox offers general liability coverage for food trucks and other related businesses. You can decide to get a business owner’s policy to enjoy the protection commercial property insurance provides. Note that this company provides worldwide coverage - meaning that your food business is covered no matter which country it is located.

Best for: Food businesses looking for worldwide liability coverage

Average cost: $28 per month

Our rating: 10/10


Food Liability Insurance Program (FLIP)


Pros

  • Get insured instantly online

  • Unlimited additional insureds 

  • Covers many types of small food businesses

Cons

  • Customer service can be unresponsive sometimes 


Food Liability Insurance Program (FLIP) covers food carts, concessions, caterers, farmers' markets, bakers, private chefs, and more. Coverage starts at $24.92 a month for general liability coverage. This company’s insurance for food businesses already comes with inland marine coverage. Also, you can add as many additional insureds as you want, have 24/7 access to policy documents, and enjoy customized dedicated limits.


Best for: Food businesses looking for coverage with dedicated limits 

Average cost: $24.92 per month 

Our rating: 10/10


NEXT Food Liability Insurance

 

Pros

  • Free live certificate of insurance

  • Bundle general liability insurance and workers comp insurance in a BOP

  • Get a 10% discount upon bundling two or more policies 

Cons

  • NEXT doesn’t offer coverage for all types of food businesses 

 

NEXT’s general liability insurance comes with a foodborne illness coverage, which is a substitute for product liability insurance the company doesn’t sell. You can choose to bundle this with workers' compensation insurance in a business owner’s policy. NEXT allows you to add additional insureds, pay premiums online, and get free certificates of insurance. 

 

Best for: Food businesses looking for liability insurance having foodborne illness coverage

Average cost: $26 per month 

Our rating: 9/10



Thimble Food Liability Insurance


Pros

  • Short-term liability insurance for food businesses

  • Instant coverage online

  • Insures customers in 60 seconds 

Cons

  • Not available in all states 


Thimble’s general liability insurance is available for grocery stores, restaurants, food stands, food trucks, and other related businesses. It is available as an annual or short-term policy lasting for only hours, weeks, days, or months.  Coverages you can buy together with Thimble’s general liability insurance are workers' compensation and commercial property insurance. 


Best for: Short-term food liability insurance

Average cost: $30 per month 

Our rating: 8/10



Recent Reviews

Recent Posts


Speak with a Representative Now Call 866-929-3479