If you are a food vendor, you need to understand what food vendor insurance is and why it is needed. Without the right food vendor insurance, you expose your business to insurmountable risks which might lead to the closure of your food vending business. In this guide, we break down all there is to know about food vendor insurance.
There are different types of food vending insurance. In the event that you run a mobile food business, you are going to need commercial auto insurance as part of your food vendor insurance policy. Suppose you secured a short-term contract to service an event. In that case, you will need one day food vendor insurance. Further, suppose you are serving your food at a multi-day event. In that case, you could purchase temporary food vendor insurance to cover you for the duration of the event.
Also read:
Today's business environment is exceptionally litigious. It is for this reason that you will require liability insurance for food vendors. This general liability insurance for food vendors prevents your business from going under in case there is a claim filed by a disgruntled visitor, malicious customer, or unsatisfied client. Seeing as legal fees could potentially be devastating financially, getting vendor liability insurance is a great place to start.
If you are a food vendor at a farmers' market, you are going to need farmers market liability insurance. As you serve your customers meals made from homegrown produce, you will be protected from both personal injury claims and property damage claims by liability insurance for farmers market vendors. Some insurers will also provide you with optional product liability coverage in their farmers market insurance for vendors.
The allure of getting a food truck for a food vending business is obvious. You get to be mobile and take your business to where the crowds are. Unfortunately, this business model has many risks attached to it, especially since you will be on a commercial automobile. The general liability insurance for food truck vendors covers you from any claims made against your food truck business. If there were any injuries, illnesses, or damages that were to occur due to your business operations, you should be covered from any of the resulting expenses by liability insurance for food truck vendors.
As a food vendor at a festival, you deal with a sea of customers. The risk you and your business are exposed to is directly proportional to the magnitude of the festival. While you could get festival insurance as a participant, you ought to specifically get food vendor insurance for festivals. The latter protects your food vendor business through general and product liability coverage. Food vendor insurance for festivals might also come with rented premises liability coverage.
Street food is currently in. As a food vendor, you stand to make a killing. Unfortunately, things might not go as dandy as you expect. As such, it would be best to get street food vendor insurance. You get protection against claims made by the public with liability insurance for street food vendors. Further, suppose one of your customers suffers food poisoning after partaking in your food. In that case, you get protection as part of your product liability coverage.
Get all the best quotes from leading providers in a click of a button!
Are you a vendor using a food cart or food stand? If this is the case commercial property insurance will be very useful. Suppose there is an occurrence of exposures and if you were to suffer losses, commercial property insurance ensures that your business continues to function by covering the following:
Business property damage-When the food cart or food stand you’re using as a vendor is damaged by fire, theft, vandalism, and other covered perils, commercial property insurance provides the money you can use to cover repair expenses
Business property destruction-Commercial property insurance will cover reconstruction or replacement costs if your food cart or food stand is destroyed by fire, extreme weather, and other covered perils
Note that just like the commercial property insurance of other businesses such as restaurants, food delivery businesses, food trailers, delis, cooking businesses, caterers, breweries, and ice cream shops, commercial property insurance for food vendors contains the following optional inclusions:
Stocks and contents coverage-Stocks and contents coverage will recoup your losses if fire, theft, vandalism, extreme weather, and other covered perils cause the goods that you’re selling to perish. Items not considered as business equipment and tools are also covered
Business equipment and tools coverage-Business equipment and tools coverage will recoup losses if the tools or equipment you’re using to make and provide goods to customers becomes lost or damaged due to fire, theft, vandalism, and other covered perils
Just like the commercial property insurance for wine retailers, wineries, pizza delivery businesses, juice bars, grocery stores, and coffee shops, your commercial property insurance doesn’t cover floods, earthquakes, and mudslides. You need to purchase an endorsement to have protection against these perils.
Another thing to remember is that commercial property insurance doesn’t automatically cover all tangible business assets. Commercial property insurance only covers business properties listed on its terms.
Food vendors using a vehicle to sell goods need commercial auto insurance. Well-written commercial auto insurance has the following:
Auto liability coverage-As a mobile food vendor, it’s a strict legal requirement for your vehicle to have auto liability coverage. Auto liability coverage will cover expenses if your vehicle causes an accident and injures third parties or destroys properties. Particular costs covered are medical expenses of injured persons and reimbursements for damaged properties. Administrative costs, settlements, attorney fees, and legal expenses are also taken care of
Physical damage coverage-Physical damage coverage covers the parts repair or replacement of the vehicle you’re using as a food vendor. This mobile food vendor insurance coverage has two forms; collision and comprehensive. Comprehensive physical damage coverage will take care of parts repair or replacement if fire, vandalism, theft, hail, winds, and other covered perils damage your commercial vehicle. As for collision physical damage coverage, this will cover your vehicle’s parts repair or replacement if the damage is caused by a collision with an object or another vehicle
Rental reimbursement coverage-Rental reimbursement coverage will cover rental or lease expenses if you need to use another commercial vehicle because the one you own is getting fixed
Medical payments/personal injury protection-Medical payments coverage covers the funeral or medical expenses of your commercial vehicle’s passenger and driver who got injured in a vehicular accident. Personal injury protection functions the same way but also takes care of after-hospital visits, lost income compensation, and other related expenses
If you only have personal car insurance on the vehicle you’re using for business purposes, it’s best to replace that with commercial auto insurance. Using personal car insurance in a commercial vehicle will result in the following:
Expensive rates
Policy cancellation
Problems when applying for car insurance in the future
Similar to bakeries, vending machine owner-operators, and food concessions, authorities will require workers' compensation insurance when one or more people are working for you. Your employees are valuable assets. If one of your employees was to accidentally get injured, workers' compensation insurance should cover the expenses that arise, particularly the following:
Medical treatment/procedure-Workers compensation insurance will pay for ambulance fees, surgeries, therapies, and other medical treatments/procedures your employee needs to have upon sustaining a work-related injury or disease
Hospitalization-With workers' compensation insurance, there’s no need for you to worry about expenses if your employee needs to stay in the hospital for an indefinite amount of time. This insurance will cover bills regardless of how long your employee needs to remain hospitalized
Medication-Workers compensation insurance will provide the money your employee needs to buy the needed medicines that will aid in the fast and efficient recovery from a work-related injury or disease
Rehabilitation-You can use workers' compensation insurance to cover the rehabilitation of an employee who suffered from impairment of bodily functions after sustaining a work-related injury or disease. Expenses covered are therapist fees, rehabilitation equipment, etc.
Lost income compensation-Workers compensation insurance helps you cover lost wages if an employee can’t work due to a job-related injury or disease. Coverage for lost wages is a weekly allowance equal to two-thirds or 67% of the average weekly wage
Death benefits-If your employee dies from a work-related injury or disease, workers compensation insurance will take care of funeral expenses and provide money to dependents
This depends on which state you're doing business in. If you’re in a state where sole proprietors need to get workers' compensation insurance for themselves, then you have to get the coverage even if you don’t have employees.
Liquor liability insurance for bartenders, bars, distilleries, and liquor stores is available if you’re a food vendor involved with the distribution of alcoholic drinks. This will cover expenses if third parties accuse you of overserving them, which resulted in personal injuries or property damage. Additionally, liquor liability insurance covers settlements, attorney fees, administrative costs, and other legal expenses.
Employer’s liability insurance will cover administrative costs, attorney fees, and other legal expenses if an employee sues you for negligence after experiencing a work-related injury or disease. Note that you don’t need to get this if you’re in a state providing an exclusive remedy to employers who have workers' compensation insurance.
Employment practices liability insurance will cover attorney fees, administrative costs, and other legal expenses if an employee sues you for sexual harassment, discrimination, wrongful termination, and other violations of employee rights.
If you need to stop selling for a while, business interruption insurance will supplement lost income so that you can pay employee wages, loans, taxes, and other operational costs without sustaining significant financial losses.
Food spoilage and contamination insurance will recover your losses if food becomes spoiled or contaminated due to negligence, power outage, and other related perils. This will also cover the cleanup costs of the contaminated equipment you’re using to store and prepare food. Depending on the underwriter, food spoilage and contamination insurance might also cover pest infestation.
You, as a food vendor, need to have a $1 million general liability coverage with proof of insurance to gain access to venues of the special events where you plan to conduct business. Planners will only ask you to have bodily injury coverage and property damage coverage in your food liability insurance. Having products and completed operations coverage or product liability coverage in general liability insurance is optional.
Having the other business insurance policies we mentioned are at your discretion. However, understand that it’s best to have them for comprehensive protection.
When it comes to food vendor insurance requirements, it’s best to think about what useful insurance policies others will look for before working with you.
Food vendor insurance cost depends on your location, revenue, the number of employees, and claims history, among others. Still, expect that your food vendor insurance will cost $25 per month or $300 per year for $1 million coverage. Below is a breakdown of the rates from the best food vendor insurance companies.
Cost per Month | Cost per Year | Best for | |
---|---|---|---|
FLIP | $24.92 | $299.04 | Food vendor insurance with dedicated custom limits |
CoverWallet | $25 | $300 | Food liability insurance quotes comparison online |
NEXT | $26 | $312 | Food businesses looking for liability insurance with foodborne illness coverage |
Hiscox | $28 | $336 | Food vendors looking for worldwide liability coverage |
Thimble | $30 | $360 | Short-term liability insurance |
Get all the best quotes from leading providers in a click of a button!
Numerous food vendor insurance companies and providers in the states offer food vending insurance solutions.
Before settling on one, it would be best to compare the different food business insurance quotes and the deals on offer and gain a better understanding of what is on offer. Click the "Get Quotes" button on this page to start.
Below, we take a look at food vendor insurance policies from the market's best food vendor insurance providers. Read to know the pros, cons, and rates for a $1 million general liability coverage.
You get insured instantly online
You can add an unlimited number of insureds
You can cover any type o food vendor business
Unresponsive customer service
Food Liability Insurance Program (FLIP) covers food carts, caterers, food stands at farmers' markets and all your staff. The coverage starts at $24.92 a month and $299.04 per year for general liability coverage. What makes the cover stand out is that you get inland marine coverage as part of the coverage. You also have the chance to add as many insureds as you can. Additional benefits include 24/7 access to policy documents, and you get to enjoy customized dedicated limits.
Best for: Food vendor insurance with dedicated custom limits
Average cost: $24.92 per month
Our rating: 10/10
Free instant insurance quotes 24/7
Option to talk one on one with a licensed insurance agent in the event of inquiries
You can buy and manage policies online
Instant proof of insurance that would be emailed to you
Get quotes instantly
CoverWallet is just a broker and doesn't underwrite insurance
CoverWallet is a web-based insurance management solution that made simplifying the management of business insurance policies their mission. They offer food vendors services with high functionality, packaged in an easy-to-understand interface. All you have to provide is basic business information to the company's platform, and they will send you the quotes of different carriers.
Best for: Food vendor liability insurance quotes comparison online
Average cost: $25 per month
Our rating: 9/10
Instant online verification of certificate of insurance
You can bundle general liability insurance and workers' compensation into a BOP
Bundling two or more policies gets you a 10% discount
Some food vending businesses aren't covered
Founded in 2015, NEXT has established itself as a one-stop shop for food vendor insurance coverage. Their food vendor insurance will encompass several coverages, including general liability, commercial auto, workers' compensation, and commercial property. You have the option of bundling all of these into $160 per month. However, if you go with general liability insurance, you will pay $26 per month.
Best for: Food vendors looking for liability insurance with foodborne illness coverage
Average cost: $26 per month
Our rating: 8/10
Worldwide coverage with a customer base of over 400,000 businesses
Discounts of up to 5% are available when you bundle together two or more policies
14-day money-back refund policy
No food vendor insurance for businesses in Alaska
BOP only offered for businesses with fewer than ten employees
If you are a sole proprietor or a microbusiness with food and beverage carts, mobile food services, mobile concessions, or mobile street food vendors, Hiscox food vendor insurance is the policy for you. It specializes in general liability for food vendors, which costs as low as $28 per month with a $2 million coverage limit. You can adjust your coverage amounts and deductibles before obtaining the final quote.
Best for: Food vendors looking for worldwide liability coverage
Average cost: $28 per month
Our rating: 7/10
You get coverage instantly online in less than 60 seconds
Short-term liability insurance for food vendors
You can extend, cancel or modify policies right from your phone
You can pause your food vendor business insurance for 30 days
You get quotes in less than a minute
Policies start at $5 an hour with no deductible and provide $1 million in coverage
Not available in all states
While Thimble is generally a newcomer, only established in 2016, Thimble differentiates itself from the rest of the food vendor insurance providers on this list by offering flexible terms. As a food vendor, you will not be locked into a yearly contract. This is excellent news for flea market and festival food vendors who need daily or even hourly insurance policies. For hourly food vendor insurance, you'll pay $5 per hour, but if you want a monthly cover, you'll pay $30 per month.
Best for: Short-term liability insurance
Average cost: $30 per month
Our rating: 7/10
Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Wow, just like just about everyone else here...extremely disappointed with this company. I have found them to be in violation of many laws for doing business in my state(Calif) according to my investigation at the California Insurance Commision. I dropped by today at their request to furnish them with with documentation for my case. These people are as crooked as they can get away with. They aren't stupid, and they know how to throw threats around. They prey on good folks who are ignorant of their rights, and don't know what the insurance regulatory agency expects of Insurance companies in each state. I challenged them to not pay, to not extend the rental, to deny repairs. Then I let them know what my regulatory commision says they must do. More than likely my case will end up in trail. My attorney is a rock-star! A trail attorney, so bring it on! The day after we receive payment for medical and attorneys, the case will be investigated and processed by the Insurance Commisioners Office.
Meredith Baldridge Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
I wanted to reach out to let you all know I will not be securing insurance through Berkshire Hathaway Guard. This company is horrible, I have not signed any documents and I am unable to get anyone on the phone.
I never purchased the policy. The person I spoke with "Bruce" was condescending and argumentative. He kept repeating himself and talking in circles telling me what I HAVE TO DO, basically trying to bully me into purchasing commercial insurance. I wouldn't use this company if they were paying me!
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now they are 2 checks behind and the last one was almost $200 short. This company does not care about taking care of their obligations or responsibilities, they have shown that they are only interested in collecting for Thier policies. If I could give them less than a star I would. I was seriously hurt working for a client of theirs and they are doing the absolute bare minimum while dragging their feet. I would not recommend them to anyone.
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay. Or here's even a better customer service tip, call me and ask me why I haven't paid the bill. Instead, you don't send me any bill, then turn me into to collections. Even better I call to pay my obligations to Brown and Joseph, they transfer me around, no answer. I'm sorry for your staff because they have to tell their friends and family where they work.