What Is Food Vendor Insurance?
Food vendor insurance helps keep food vendors from paying out of pocket for legal and settlement costs arising from bodily injury or property damage claims, and help cover replacement or repair costs for damaged or stolen equipment.
This article explains what food vendor insurance is, who needs it, factors affecting cost, and lists the top ten food vendor insurance providers.
Who Needs Food Vendor Liability Insurance?
Anyone who owns a business selling food items should have food vendor liability insurance to protect them from financial losses due to unforeseen events. There are many different scenarios where you might want (or be required) to have food vendor insurance.
Businesses that need food vendor liability insurance include:
- Food trucks and carts
- Concession stands
- Vendors
- Private chefs
- Caterers
Additionally, you should have insurance for a food business you run from your home, such as if you sell baked goods you make in your own kitchen.
You may also need temporary food vendor insurance for catering or vendor events. For instance, organizers may require you to have food vendor insurance for festivals, or a wedding might require a caterer to have one-day food vendor insurance.
How Much Does Food Vendor Insurance Cost?
Food vendor insurance cost depends on several factors, including the type of business you run and the risks involved. For instance, a food truck operator with employees would likely pay more for insurance than a solo vendor selling hot dogs at an event, as the food truck owner would want to have commercial auto and workers’ compensation policies as well as general liability coverage.
Food liability insurance costs are affected by several factors, including your:
- Location
- Number of employees
- Claims history
- Type of business
- Equipment and tools value
- Coverage limits
If your business serves alcohol, you will also need liquor liability coverage, which can increase your insurance costs.
Policies for Food Vendor Businesses
There are a few common policies food vendors tend to have:
- General Liability: This type of insurance helps pay for claims arising from bodily injury, property damage, or personal injury (reputational harm). For instance, if a customer falls into your food cart’s heating element and burns themself, general liability insurance can help pay legal fees and settlement costs.
- Property: Commercial property insurance protects your equipment from covered events such as fire, storms, and theft.
- Commercial Auto: Commercial auto insurance helps protect your food truck or company vehicles in case of an accident. Coverage options for commercial auto insurance can include comprehensive, collision, bodily injury, property damage, and uninsured motorists coverage.
- Inland Marine: Inland marine insurance helps pay for tools or equipment that is lost or damaged either in transit or at a worksite.
- Workers’ Compensation: Most states require food vendors with employees to carry workers’ compensation (or workers’ comp) insurance. Workers’ comp helps cover medical expenses, disability benefits, and lost wages if an employee is injured while working.
Many insurance providers offer a business owners policy (BOP) which combines general liability and property insurance into one policy, often at a discount. You may also need product liability (helps pay for claims that your food product caused harm) and liquor liability coverage.
10 Best Food Vendor Insurance Providers
We reviewed highly-rated insurance companies and chose the ten best insurance providers for food vendors. Read on to find out which company is the best fit for your business.
The Hartford
Benefits
The Hartford offers business insurance specifically for food vendors, including:
- Bakers
- Caterers
- Food delivery trucks
- Food trucks
- Restaurants
pros
- Industry-specific options
- Easy-to-understand explanations of what policies cover (and don’t cover)
- Covers businesses of all sizes and can grow with your business
cons
- May not be able to cover all insurance needs (but will refer out to a different insurance agency, Tivly if so)
Features
The Hartford’s insurance options for food vendors include:
- BOP
- Commercial auto
- General liability
- Workers’ comp
- Liquor liability
You can also choose additional coverages as needed, such as employee benefits liability (which protects you if someone sues you for mismanagement of benefits) and data breach protection.
Pricing
Pricing varies depending on your business. When we filled out The Hartford’s online quote form for a bakery making $100k a year with one employee, we received the following prices:
- General liability: $900.86/year
- Workers’ compensation: $501/year
Travelers
Benefits
Travelers offers a wide range of insurance policies for businesses of all sizes. Its risk control services include a Risk Index that teaches you how to identify and manage common risks, and its Prepare and Prevent page, which contains a wealth of information about risk management strategies.
pros
- Risk Index helps identify the most common risks to your business
- Can insure businesses of all sizes
- Restaurant-specific coverage is available
cons
- No online quotes are available
Features
Travelers’ INDUSTRYEdge for Restaurants program is designed for dine-in and catering restaurants, but its coverage options are beneficial for many food vendors as well. INDUSTRYEdge’s insurance policies include:
- Property
- Auto
- General liability
- Workers’ comp
- Umbrella (excess liability insurance that kicks in if you exceed your policy limits)
You can also get equipment breakdown coverage to help pay for replacement or repair costs for your kitchen tools and appliances, and cyber insurance to protect against data breaches or cyberattacks.
Pricing
You can use Travelers’ Find an Agent tool to get quotes from a local agent.
CNA
Benefits
CNA offers many insurance policies food vendors need and a range of risk control options. CNA’s PrepWise is a consulting service that gives policyholders access to information about topics including business resilience, cybersecurity, ergonomics, remote working, and more.
pros
- BOP packages are designed specifically for small or midsize businesses
- Comprehensive selection of insurance products
- Claims center enables you to report a claim online
cons
- No offerings specifically for food vendors
Features
CNA offers the following business insurance policies:
- General liability
- Management and professional liability
- Workers’ comp
- Commercial auto
- Property
It also provides CNA Connect (its BOP) and CNA Paramount (a commercial package for midsize businesses). CNA Connect includes property and general liability policies and 300 optional endorsements (additional coverage choices). CNA Paramount includes property, crime, and umbrella coverage and its customizable proprietary general liability extension endorsements policy.
Pricing
CNA will match you to an agent, or you can use its Find an Agent tool to get a customized quote.
Gallagher
Benefits
Gallagher is an insurance brokerage with locations all over the world. It offers insurance products and consultation services for many industries, including food and agriculture.
pros
- Gallagher’s Harvest Captive tool enables farmers to save money by pooling insurance costs
- The product recall team helps with product labeling and recalls
- Optional employee benefits are available
cons
- No online quotes
Features
Gallagher’s food vendor insurance options include:
- General liability
- Professional liability
- Business auto
- Property
- Workers’ comp
Pricing
You can give Gallagher your contact info to get a customized quote.
FLIP
Benefits
FLIP stands for the Food Liability Insurance Program, and is designed specifically for food vendors and others in the food industry. Whether you need temporary or permanent insurance, FLIP has got you covered. You can get fast quotes and purchase single-event or annual policies online.
pros
- Upfront pricing
- Chat customer service option
- 3-day and one-year policies are available
cons
- Customer service is unavailable on weekends
Features
FLIP offers the following food vendor insurance policies:
- General liability
- Product liability
- Inland marine
- Workers’ compensation
It also provides liquor liability coverage, cyber liability, and damage to premises rented insurance.
Pricing
Policies depend on your individual needs, and start at $25.92/month.
Thimble
Benefits
Thimble offers event and annual coverage for food vendors. Its online quote process is fast and easy, and it provides transparent pricing. You can also get liquor liability policies through Thimble.
pros
- Straightforward pricing
- Fast quotes
- Ability to purchase policies online
cons
- Event insurance only covers events lasting up to five days
Features
Thimble offers many of the policies a food vendor might need, including:
- General liability
- Professional liability
- Workers’ compensation
- Commercial property
- Inland marine
Pricing
Pricing depends on your business type. When we filled out a quote form for a food vendor business making $100k a year with one employee, we received the following average monthly prices:
- General liability: $199.62
- Professional liability: $74.97
- Customer property protection: $17.50
- Business equipment protection (inland marine): $14.58
- Workers’ compensation and employers’ liability: $54.25
The average cost for event insurance depends on the number of attendees but typically ranges between $115-$340 for a one-day event.
Nationwide Insurance
Benefits
Nationwide is a Fortune 100 company, which means it is one of the largest financial companies according to revenue. If choosing a profitable insurance provider is important to you then Nationwide is a good option.
pros
- Nationwide’s CustomSolutions is designed especially for larger businesses (those with more than $20 million in property or with more than 50 employees)
- Large selection of insurance products, including business, personal, vehicle, and property policies
- Customizable BOPs
cons
- The online quote form is lengthy
Features
Nationwide provides insurance specifically for the food service industry, including:
- BOP–includes business property, general liability, business income (helps pay for lost revenue if your company is forced to temporarily close due to a covered event), and equipment breakdown policies
- General liability
- Business property
- Workers’ comp
- Commercial auto
- Inland marine
Pricing
You can start a quote online, call Nationwide, or use its online Find an Agent tool to connect with an agent and get a customized quote.
Next Insurance
Benefits
Next’s website is attractive, informative, and easy to use, and it caters to several industries, including food vendors. Next provides transparent pricing and the ability to get quotes and purchase food vendor insurance online.
pros
- Informative website with straightforward pricing
- Industry-specific coverage options
- Different packages are available depending on your needs
cons
- No customer service phone number
Features
Next offers most of the small business insurance policies that food vendors need, including:
- General liability
- Professional liability
- Tools and equipment
- Commercial property
- Workers’ compensation
- Commercial auto
Pricing
Next’s pricing depends on your specific business, but you can get a quote and buy a policy online. These are the general liability quotes we received for a food vendor business with one employee and an annual revenue of $100k:
- Basic Coverage (Next’s most affordable liability package): $585.84/month
- Premier Coverage (recommended for most businesses): $665.34/month
- Deluxe Coverage (designed for larger businesses): $680.50/month
You can customize packages and add extra insurance (such as professional liability and umbrella coverage) after purchase.
Hiscox
Benefits
Hiscox has been around since 1901 and operates in 14 countries. It has the experience and knowledge necessary to provide insurance services to a wide range of industries, including food vendors.
pros
- Global insurance company
- Coverage is avaialble in 49 states
- You can speak with a Hiscox licensed agent M-F 7 AM-10 PM ET
cons
- Depending on your needs, Hiscox may be unable to provide an online quote
Features
Hiscox offers the following food vendor insurance policies:
- General liability
- Professional liability
- Workers’ compensation
- Commercial auto
Pricing
Hiscox provides online quotes for some of its insurance products, but you may need to call the company (844-357-0840) to get prices for others.
BiBerk
Benefits
BiBerk advertises policies that cost up to 20% less than other insurance companies and paid out $38 billion in claims in 2020. Policyholders can get a certificate, report a claim, or make a payment online, and BiBerk offers many educational resources through its website, including articles and safety videos.
pros
- Can get a quote online or speak to an agent for pricing
- General liability insurance typically includes product liability coverage
- BiBerk’s BOP includes business interruption coverage in case you lose income due to a covered event
cons
- Online quote tool might lag
Features
BiBerk’s food vendor insurance options include:
- Workers compensation
- Commercial auto
- General liability
- Commercial property
- Professional liability
Pricing
Customized pricing is available via an agent or BiBerk’s online quote tool.
FAQs
How much does food vendor insurance cost?
Food business insurance costs depend on several factors, including your type of business, location, number of employees, claims history, and coverage limits.
