Food Service Insurance
The food service industry covers a lot of ground, and each business within the sector requires insurance protection from a wide range of potential problems that arise along the way. Whether you operate one of the following types of food service establishments or something else entirely, it is essential that you buy the right food service insurance to protect your investment.
Some types of food businesses that require food business insurance include:
- Coffee Shops
- Food Trucks
- Food Vendors
- Catering Companies
- Concession Stands
- Smoothie Shops
- Wineries and Vineyards
While not the same thing as restaurant insurance, establishments that require coverage for food business interests often require insurance that is similar to what restaurants need for things like food spoilage, food liability insurance, etc.
There are distinct differences to consider, as well. Working with an insurance agency that understands the unique needs facing small food business owners and workers can help you get the right protection for your business.
Small Food Business Insurance Considerations
Most small business owners dream of someday having larger businesses. With that in mind, you must think of the big picture when purchasing essentials for your business like insurance. Different types of service businesses require different types of food service insurance.
For instance, delis that offer “grab and go” services or package food to sell as convenient boxed orders might require food product liability insurance in addition to other types of insurance.
The more your insurance agent understands the current offerings of your business, the better he or she can help you get the right products for your needs today, and as your business grows.
However, if you sit down with your agent and discuss your plans for the future, your insurance agent can inform you of specific types of coverage or protection you need to consider when expanding, such as:
- Food trailer insurance
- Concession trailer insurance
- Liquor liability insurance
- Winery property endorsements
- Workers compensation (depending on how large your business grows)
Avoid the tendency to focus solely on the future, though. Your business is facing very real insurance concerns today, including:
- Food spoilage insurance protection. Pays you if equipment breakdowns result in the spoilage of foods. Helps cover the cost of replacing spoiled foods.
- Mechanical breakdown insurance. Helps cover the costs of repairs when mechanical breakdowns occur.
- Outdoor signage insurance. Replaces signage destroyed by covered events.
- Employee theft insurance. Helps deal with the financial fallout of employee thefts within your organization.
- Robbery and theft protection. Provides protection if food, equipment, or money are stolen by outside forces.
- General liability protection. Provides general liability protection, up to the policy limits, for slips and falls, and other liability issues.
- Umbrella liability coverage. Provides protection, when damages awarded, exceed the limits of your general, and other, liability policies.
- Business auto and liability coverage. Essential if you operate a food truck or company-owned delivery vehicles.
- Unowned vehicle liability insurance. Necessary if your delivery drivers use their personal vehicles.
Don’t forget the essentials either. As a business owner, you still need to make sure you have the usual insurance offerings to protect your business from the same types of problems that affect all business. The standard business owner’s policy, or BOP, is a must as the foundation for all other food service insurance products you purchase.
This includes a few fundamental coverages:
- Business property insurance. This covers the building where your business is housed as well as the property owned by your business, such as customer seating, food inventory, food service and preparation equipment, cash registers, etc.
- General liability coverage. A small amount of general liability protection is included in the standard BOP, though most business owners, particularly in the food service industry, prefer additional liability insurance protection and higher policy limits.
- Business interruption coverage. This protection allows you to continue making payments to creditors and vendors while your business is closed to make repairs in the aftermath of covered events.
While there is no such thing as a one-size-fits-all insurance policy for business, the business owner’s policy is the cornerstone upon which food service insurance policies are created. You don’t need a specialized food liability insurance program to get outstanding insurance for your food service business.
You do, however, need to sit down with an independent insurance agent to compare your business insurance options and find the right coverage to provide you peace of mind without breaking the bank.
Why Work with The Insurance Center of North Jersey?
The Insurance Center of North Jersey is an independent insurance agency that has been meeting the needs of area businesses and families since 1927. We are dedicated to providing exceptional insurance protection and “just right” coverage for the people we serve.