Food Vendor Insurance: Liability, Cost & Quotes From $7

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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.

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Liability Insurance for Food Vendors  

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.

Liability Insurance for Farmers Market Vendors  

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. 

Liability Insurance for Food Truck 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.  

Food Vendor Insurance for Festivals

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.

Insurance for Street Food Vendors  

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. 

Commercial Property Insurance for Food Vendors 

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. 

Commercial Auto Insurance for Food Vendors 

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 

Food Vendor Workers Compensation Insurance

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 

Do You Need Workers Compensation Insurance If You’re Working Solo As A Food Vendor?

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. 

More Insurance for Food Vendors 

Food Vendor Liquor Liability Insurance

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. 

Food Vendor Employer’s Liability Insurance

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. 

Food Vendor Employment Practices Liability 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. 

Food Vendor Business Interruption Insurance

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 Vendor Food Spoilage and Contamination Insurance

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. 

Food Vendor Insurance Requirements

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  

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.