What Does Food Business Insurance Cover?

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No matter the cuisine, good insurance is worth the premiums.

Learn how food business insurance can keep your café, food truck, or catering company afloat.


Whether you run a hot dog stand or a Michelin-star restaurant, you’ve put a lot of thought into your business. Menu, venue, seating…nothing has escaped your notice.

But how much thought have you put into your insurance?

Having good insurance coverage is crucial to the success of your eatery. Let’s examine the ins and outs of food business insurance to help you find the policy that’s best for you.


Who Needs Food Business Insurance?

Any business that makes, sells, or distributes an edible (or drinkable) product needs to consider their food business insurance options.

Cafés & Bistros
Coffee Shops
Ice Cream Shops
Food Trucks & Food Carts
Catering Companies
Bars & Pubs
Liquor Stores
Personal Chefs
Ghost Kitchens

This is just a small sampling of the types of business that need to consider food business insurance.

Keep in mind that every business—even those within the same industry—have different levels of risk. Just because your competitors require a certain type of policy, that doesn’t mean you will (and vice versa).

What Does Food Business Insurance Cover?

“Food Business Insurance” doesn’t refer to a specific type of policy; rather, it refers to the types of coverage that the average food business needs. As a result, food business insurance is capable of covering a myriad of risks.

1. Liability Claims

Like it or not, your business is exposed to all kinds of risks, from a slip and fall on a recently mopped floor to an allegation of copyright infringement.

In the event that you are sued for damages, liability coverage will help cover the costs of defending yourself in court as well as any settlements or judgments you’re ordered to pay.

Keep in mind, though: a general liability insurance policy is a good place to start, but it’s far from sufficient coverage! For instance, general liability coverage won’t handle liquor-related claims, so if your establishment serves alcohol, you’ll need a liquor liability policy.

2. Damage to Your Property

There are lots of businesses that can operate with minimal property, but a food-related business isn’t one of them. From mixers to ovens to your POS system, it takes a lot to keep your kitchen open and customers happy.

In the event that any of your property becomes damaged due to a (covered) loss, property damage will help replace it.

If your business owns any kind of vehicle (from food trucks to delivery vans), you should also look into a commercial auto policy or commercial fleet policy.

3. Business Interruptions

When it comes to fires, hurricanes, and other natural disasters, it isn’t just property damage you need to be worried about. Lengthy renovations can also keep your doors closed, causing you to lose out on income.

Business interruption coverage helps cover the costs so you can stay afloat in the event of a claim.

4. Food Spoilage and Contamination

It happens to the best of us: that chicken went bad before you could use it or the latest batch of lettuce was part of a listeria recall. Can you afford to throw all that money in the (literal) garbage?

Adding food contamination coverage will ensure that you can adequately recover from the cost of replacing the ingredients, cleaning your kitchen, and even restoring your reputation.

5. Employee Theft

Whether they’re skimming from the till or stealing a customer’s credit card number, underhanded employees pose a serious risk to your reputation. An employee theft endorsement can help make things right.

6. Employee Injuries

In Florida, business owners are required by law to carry workers’ compensation insurance if they have more than four (4) employees, but with all the risks inherent in the food industry, we believe that workers comp is non-negotiable.

Without worker’s compensation coverage, any employee injured on the job can sue you for damages.

7. Employment Discrimination Claims

The high employee turnover in the food industry makes Employment Practices Liability Insurance (EPLI) a necessary part of your insurance coverage.

If an employee (or even someone you interviewed once) files a lawsuit against you for discrimination, EPLI will help cover the legal costs of defending yourself in court. Remember, you don’t need to be found guilty to be saddled with the financial costs of a lawsuit. Your attorney will charge you either way.

How To Shop For Food Business Insurance

No matter what type of insurance you’re looking for, it’s crucial to find the right policies and the right amount of coverage. Having too little coverage can be just as bad as having none at all.

If you find the insurance landscape confusing, that’s okay! After all, you’re an expert in food, not coverage limits and premium amounts.

But just like you rely on your vendors to point you toward the best ingredients, you can rely on an independent insurance agent to craft the right insurance coverage for you.

A knowledgeable independent insurance agent can not only recommend specific policies and coverage amounts, they have the freedom to gather quotes from multiple different carriers. They can also advise you on which insurance companies have the best customer service and keep you updated of any changes to your policy.

Most importantly, working with a dedicated insurance agent will give you the benefit of an experienced partner. As your business grows, you’ll have someone at your side to make sure your insurance coverage keeps up.



At Harry Levine Insurance, we’re excited to stand beside you as you watch your food business take flight. Throughout the years, we have been proud insurers (and customers!) of some of Orlando’s finest eateries.

Whether you’re just starting out with your first food truck or you’ve opened multiple locations, let our friendly and knowledgeable agents guide you toward the policies you need to stay in business for years to come.

Contact our office today for a free quote.

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