Food and beverage businesses we insure
Top insurance policies for food and beverage businesses
Business insurance covers costly medical bills and lawsuits, and coverage may be required by state law or the terms of a franchise. These insurance products protect against the most common risks in the food and beverage industry.
Business owner's policy
Small business owners are often eligible for a business owner's policy, also called a BOP. This bundle includes both general liability coverage and commercial property insurance at a discount.
- Customer bodily injuries
- Damaged customer property
- Stolen or damaged business property
Workers' comp insurance
Most states require businesses with employees to carry workers' compensation insurance. Personal health insurance won’t cover work-related injuries, which makes this policy crucial for sole proprietors too.
- Work-related medical expenses
- Disability benefits
- Lawsuits from workplace injuries
General liability insurance
A general liability policy protects restaurants and other food and beverage businesses against legal costs from third-party injuries and property damage, such as a customer who slips on a wet floor.
- Customer slip-and-fall injuries
- Accidental damage to a customer's property
- Advertising injuries, such as copyright infringement
Commercial auto insurance
Most states require commercial auto insurance for business-owned vehicles. This policy covers legal costs in the event of an accident involving a food truck or other company vehicle.
- Damage caused by your vehicle
- Legal costs from an accident
- Vehicle theft and vandalism
Cyber insurance
Cyber liability insurance helps food service businesses recover from costly cyberattacks and data breaches. It’s recommended for any business that handles credit cards or other personal information.
- Data breach investigations
- Fraud monitoring services
- Ransomware attacks
Professional liability insurance
This policy protects food service businesses against legal costs related to professional negligence, such as a caterer who delivers food late to an event. It's also called errors and omissions insurance (E&O).
- Late or undelivered meals
- Incorrect catering orders
- Other errors and oversights
How much does business insurance cost for food service companies?
From our customer data, here's a quick look at average food business insurance costs:
General liability: $44 per month
Business owner's policy: $148 per month
Workers' compensation: $106 per month
Factors that can influence your premiums include:
- Type of business, such as restaurant, bar, coffee shop, or fast food chain
- Number of employees
- Value of your kitchen equipment and other property
- Types of insurance purchased
- Coverage limits and deductibles
- Claims history
How do I get food and beverage business insurance?
TechInsurance helps you get insured quickly so you can sign contracts, comply with state laws, and protect your business against costly lawsuits and accidents. We work only with top-rated insurance companies to secure the best possible coverage for your restaurant or other food business.
You can get the right insurance in three simple steps:
- Fill out our easy online application with your business details.
- Compare quotes from our trusted partners.
- Pay for a policy and download your certificate of insurance (COI).
Our licensed insurance agents know the unique risks of the food service industry and will help you find the right coverage for your business needs and your budget. Gain peace of mind with advice from expert agents and policies from the leading carriers in the nation.
Hear from business owners like you who purchased insurance coverage.
Common questions about business insurance for food service businesses
Find answers to your questions about food liability insurance and other coverages.
Will insurance cover my business if it's forced to close temporarily?
Yes, business interruption insurance will cover costs in the event of a temporary forced closure. Also called business income insurance, this coverage is often included with commercial property insurance or a business owner's policy.
Business interruption insurance activates alongside a covered property claim like a fire, storm, or burglary. If you're forced to close during a renovation, it can help pay for daily operating expenses, such as rent and employee wages.
Extra expense insurance can cover additional related costs, such as moving to a new location until you're able to reopen, or leasing equipment for the temporary site.
The cost of a fire or similar event isn't limited to the actual damage it causes, but also the lost profits and expenses that pile up while you're closed. That's why this policy is crucial for restaurants, bars, and other food service businesses that depend on a steady flow of customers.
Is my food service business required to have product liability insurance?
Though it's not required by law, any business that makes, sells, or serves food should carry product liability insurance. Customers who are harmed by a product can sue any business in the supply chain, including your food service business.
For example, product liability insurance can cover:
- Contaminated food
- Allergic reactions
- Labeling errors
If a customer blames their illness on food served at your restaurant or sold at your farmers' market stand, product liability insurance can help pay for attorney's fees, settlements, and other legal expenses related to the claim. It's often included in a general liability policy.
Is food poisoning covered by general liability insurance?
Yes, general liability insurance covers accidental customer injuries. That includes everything from a slip-and-fall injury to food poisoning. If an undercooked burger makes a customer ill, then this policy will help pay for your legal fees, including a settlement or court-ordered judgment.
However, general liability won't cover spoiled perishable goods. For that, look to food contamination and spoilage insurance. This policy covers financial losses related to a power outage or other incident that requires your refrigerated or frozen food to be thrown away.
You can typically add food contamination and spoilage insurance to your BOP or property insurance as a rider, also called an endorsement.
What are the requirements for food handling insurance and licensing?
Most states require food handlers (anyone who works with food) to take food safety courses and pass an exam. You can typically take the course and exam online, such as that offered by the ANSI National Accreditation Board (ANAB).
These courses teach food service workers how to prevent food contamination, such as by cooking meats to correct temperatures and keeping kitchens and tools clean.
Depending on the laws in your state, you might also need a food manager certification for yourself or a manager at your business. This also involves taking an approved course and exam.
Both food handler and manager certifications may need to be renewed every few years, so make sure to keep your certifications up to date. Food vendor insurance isn’t typically required by law, though landlords, franchises, and venues may have specific requirements of their own.
What other insurance coverages do food service businesses need?
In addition to the policies mentioned above, restaurant owners and others should consider the following types of coverage:
- Liquor liability insurance: This policy covers harm caused by an intoxicated customer who was overserved at your bar, liquor store, or other establishment.
- Employee dishonesty coverage: You can add commercial crime insurance to a BOP to protect your business from cash register theft and other dishonest acts, or buy a fidelity bond that will reimburse your clients for employee theft.
- Equipment breakdown coverage: This policy covers costs when a freezer, refrigerator, or other kitchen equipment suffers a sudden breakdown.
- Electronic data processing (EDP) insurance: If a computer loses important data due to a fire or power surge, this policy helps pay for any related losses.
- Employment practices liability insurance (EPLI): If an employee accuses your business of wrongful termination or another violation of their rights, this policy will cover your legal costs.
- Hired and non-owned auto insurance (HNOA): Vehicles that are used but not owned by your business, such as a personal car driven for work, should have this liability coverage, as a personal auto policy won't cover business use.
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Business liability insurance is any type of commercial insurance that defends against accusations that your business caused damage, injury, or loss. It's recommended for all small businesses because of the high cost of lawsuits.
General liability insurance is included in a business owner's policy (BOP), a cost-saving bundle designed for low-risk businesses. General liability covers bodily injuries, damage to a customer's property, and advertising injuries. A BOP provides the same coverage, along with commercial property insurance.