Food vendors, just like food trailers, are required to get the appropriate amount of insurance before selling food at parks, festivals, and other locations. Insurance safeguards customers and ensures that a food vendor can grant compensation in case food poisoning or accidents happens.
Food vendor insurance provides comprehensive coverage to startup food vendors and established ones. This consists of vendor liability policies, commercial property insurance, workers’ compensation insurance, and others. By getting insured, you can cover the bodily injuries or property damage of third parties. It’s even easier to repair or replace food carts and other equipment.
General Liability Insurance For Food Vendors
There are different kinds of food vendors such as those that sell in farmers markets, those that serve customers through a food truck, or those that create dishes at their food stands situated in bustling streets. But regardless of which you associate yourself with, there’s no doubt that general liability insurance is one policy you’ll always get.
This insurance grants protection against claims for bodily injuries or property damage. Copyright infringement claims are also covered. And depending where you purchase it, general liability insurance for food vendor can cover food poisoning claims.
The features of general liability insurance differ depending on what kind of food vendor is purchasing it. Below are quick discussions of the general liability insurance for farmers market vendors, food truck vendors, and street food vendors.
General Liability Insurance For Farmers Market Vendors
| CoverWallet | NEXT (Best) | Thimble | Hiscox | FLIP | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $600,000/$2,000,000 | $2,000,000 |
| Product liability coverage aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $2,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | Included |
| Rented premises liability coverage aggregate limit | $300,000 | $100,000 | $5,000 | $100,000 | $300,000 |
| 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 |
Farmers market vendors are required to get general liability coverage by the farmers market organizers. Organizers will require you to get a farmers market insurance for vendors with a $500,000-$1 million liability coverage.
General liability insurance for farmers market vendors has a $1 million-$2 million per occurrence and aggregate limit. It’s possible for you to find companies that offer higher or lower limits.
Insurance companies automatically include a rented premises liability coverage in the general liability policy of their farmers market insurance. As a food vendor, you’ll find this useful if you’re just renting the farmers market stand. This will reimburse the losses of the organizers if the stand gets damaged.
Use the table above to compare the farmers market liability insurance of companies we recommend.
General Liability Insurance For Street Food Vendors
| CoverWallet | Thimble (Best) | Hiscox | FLIP | |
|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $600,000/$2,000,000 | $2,000,000 |
| Product liability coverage aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $2,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | Included |
| Rented premises liability coverage aggregate limit | $300,000 | $5,000 | $100,000 | $300,000 |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 |
Street food vendors are not required to get general liability insurance, depending on which city or town they’re selling food. For those who need coverage, insurance companies sell a highly tailored general liability insurance for street food vendors.
A street food vendor’s general liability insurance policy has a $1 million-$2 million per occurrence limit. Optional coverages included in the general liability policy of street food vendor insurance are tools and equipment and inland marine.
Use the table above to compare the general liability insurance for street food vendors as underwritten by companies we recommend.
General Liability Insurance For Food Truck Vendors
| CoverWallet | NEXT (Best) | Thimble | Hiscox | FLIP | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $500,000/$1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $2,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | Included |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $300,000 |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
If you’re a food truck vendor, then you’ll get a general liability policy in food truck insurance programs. The per occurrence limit of the general liability insurance for truck food vendors is $500,000-$2 million. On the other hand, the aggregate is $1 million-$2 million.
Coverage for your food truck can be included in the general liability policy of food truck and mobile food vendor insurance plans. And this comes in the form of hired/non-owned auto liability coverage. An optional tools and equipment coverage for cooking equipment inside the food truck is also available.
Use the table above to compare the general liability insurance for food truck vendors from the companies we recommend.
Commercial Property Insurance For Food Vendors
| CoverWallet | NEXT (Best) | Thimble | Hiscox | |
|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $350,000 | $25,000/$500,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $24,000 | $25,000/$500,000 | $25,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | $2,500 |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Included |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded |
Commercial property insurance is useful if you’re the owner of a food vending franchise that operates through several food trucks, food stands, or food carts.
You can use commercial property insurance to cover the tangible assets of your food vending franchise. For example, you can use this policy to recover financial losses if the office or any other building that you own, lease, or rent gets damaged or destroyed due to:
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Fire
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Theft
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Vandalism
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Malicious mischief
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Sinkhole collapse
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Volcanic action
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Weather
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Impact
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Vehicles
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Aircraft
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Falling objects
Of course, tangible assets aren’t only limited to the building you own as a big-time food vendor. Rest assured that commercial property insurance can also help if valuable papers and records, accounts receivable, cooking equipment, food carts, and food stands sustain damage or get destroyed because of the perils we mentioned above.
So how do you get commercial property insurance? You’ll find this insurance easily. Commercial property insurance is a common inclusion in tailored food insurance plans such as food cart insurance. Use the table above to compare the commercial property insurance of companies we recommend for food vendors.
Business Owner’s Policy For Food Vendors
| CoverWallet | Thimble | NEXT (Best) | Hiscox | |
|---|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $500,000/$2,000,000 | $300,000/$2,000,000 |
| Commercial property coverage limit | $50,000 | $25,000/$500,000 | 350,000 | $25,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes |
Similar to juice bar insurance programs, food vendor insurance programs might allow you to bundle general liability insurance and commercial property insurance into a business owner’s policy.
A business owner’s policy is a fusion of general liability insurance and commercial property insurance. That said, this is an insurance policy that grants protection against liability lawsuits and business property damage or loss.
Depending on which insurance company underwrote it, a business owner’s policy for food vendors might offer optional policies such as cyber liability coverage, tools and equipment coverage, hired/non-owned auto liability coverage, and more.
Use the table above to compare the business owner’s policy of companies we recommend for food vendors.
Tools And Equipment Insurance For Food Vendors
| NEXT (Best) | Thimble | Hiscox | FLIP | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $5,000/$25,000 | $5,000/$10,000 |
| Covers hired and borrowed equipment? | $5,000/$10,000 | $2,500/$5,000 | No | No |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | No | No |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance will cover the repair or replacement of ovens, fryers, stoves, mincers, meat grinders, blenders, and other equipment you use for preparing food. Coverage applies if damage or loss is caused by theft, vandalism, and other covered perils. Tools and equipment coverage isn’t exclusive to food vendors. Companies also offer this in their hot dog cart insurance programs and other related protection plans.
Use the table above to compare the tools and equipment insurance of companies we recommend for food vendors.
Workers Compensation Insurance For Food Vendors
Workers compensation insurance is coverage for employees, if there are any. You can decide not to get workers comp if you’re working solo. However, we suggest you do otherwise.
By having workers’ compensation insurance, you can get the appropriate treatment and financial assistance for a work-related injury. This insurance will cover hospital bills, medication, lost wages, rehabilitation, and even funeral expenses and allowance to dependents in case of death.
An employer’s liability coverage can be optionally added to workers’ compensation insurance. This will take care of settlements and legal fees if an employee sues you after sustaining a work-related injury or disease.
Liquor Liability Insurance For Food Vendors
Liquor liability insurance might be handy if you’re a food vendor who also sells alcoholic beverages. While this policy is usually included in liquor store insurance programs, there are some food vendor insurance packages that allow you to add liquor liability coverage to general liability insurance.
Liquor liability insurance will take care of expenses in case a drunk customer files a claim for bodily injury or property damage. If the drunk customer hurts people and victims raise a lawsuit against you, then this insurance can still help cover attorney fees and settlements.
One Day Food Vendor Insurance
What works as a one day food vendor insurance is a short-term general liability policy. A short-term general liability policy provides coverage for a few hours, an entire day, or several weeks. This has a $1 million-$2 million per occurrence and aggregate limit. Optional policies might be included.
Insurance companies that sell temporary food vendor insurance for one day are Hiscox, Thimble, and The Hartford.
Food Vendor Insurance For Festivals
The organizers of the festival have their own festival insurance that takes care of liabilities, equipment damage or loss as well as event cancellation. However, they’ll require you to get the appropriate coverage and name them as additional insureds. Your existing general liability policy can be used as a food vendor insurance for festivals. Another option is to get a short-term general liability policy in case you want an additional level of protection.
Food Vendor Insurance Cost
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $35 | $420 | $0-$500 |
| Commercial property insurance | $39 | $468 | $1,000-$2,500 |
| Business owner’s policy | $65 | $780 | $500-$1,000 |
| Liquor liability insurance | $45 | $540 | $500-$1,000 |
| Tools and equipment insurance | Cost included in general liability insurance | Cost included in general liability insurance | $0-$500 |
The average food vendor insurance cost is $35 per month or $420 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are business history, business size, number of employees, annual revenue, and location. Here’s another table that shows how much the best companies charge for their $1 million general liability insurance.
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| FLIP | $24.92 | $299.04 | Food vendor insurance with dedicated custom limits |
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance for food vendors |
| CoverWallet | $26 | $312 | Food liability insurance quotes comparison online |
| Hiscox | $28 | $336 | Food vendors looking for worldwide liability coverage |
| Thimble | $30 | $360 | Short-term liability insurance |
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It would be best to compare the different food business insurance quotes and gain a better understanding of what is on offer. Click the “Get Quotes” button on this page to start.
Help others make better decisions
Best Food Vendor Insurance Companies
Numerous food vendor insurance companies and providers in the states offer food vending insurance solutions. Below, we take a look at the best food vendor insurance companies. Read to know the pros, cons, and rates for a $1 million general liability coverage.
FLIP Food Vendor Insurance
Pros
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You get insured instantly online
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You can add an unlimited number of insureds
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You can cover any type o food vendor business
Cons
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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
NEXT Food Vendor Insurance
Pros
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Best overall
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Get an online proof of insurance and send as a text message, email, or social media post
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Fastest general liability insurance for food vendors
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Great customer service and reputation
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Issues an online proof of insurance instantly
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Outstanding value for money
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Bundle two or more insurance policies and get a 10% discount
Cons
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Couldn’t find any
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. If you go with general liability insurance, you will pay $25 per month.
Best for: Best overall; Fastest general liability insurance for food vendors
Average cost: $25 per month
Our rating: 10/10
CoverWallet Food Vendor Insurance
Pros
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Free instant insurance quotes 24/7
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Option to talk one on one with a licensed insurance agent in the event of inquiries
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You can buy and manage policies online
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Instant proof of insurance that would be emailed to you
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Get quotes instantly
Cons
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CoverWallet is just a broker and doesn’t underwrite insurance
CoverWallet is a web-based insurance management solution that simplifies the management of business insurance policies. 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: $26 per month
Our rating: 10/10
Hiscox Food Vendor Insurance
Pros
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Worldwide coverage with a customer base of over 400,000 businesses
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Discounts of up to 5% are available when you bundle together two or more policies
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14-day money-back refund policy
Cons
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No food vendor insurance for businesses in Alaska
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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 for 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
Thimble Food Vendor Insurance
Pros
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You get coverage instantly online in less than 60 seconds
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Short-term liability insurance for food vendors
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You can extend, cancel or modify policies right from your phone
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You can pause your food vendor business insurance
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You get quotes in less than a minute
Cons
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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
