Food Vendor Insurance: What Coverage Do You Need?

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Is your food business on the move?

Make sure you’re protected with food vendor insurance.


From ice cream trucks to coffee carts, mobile food vendors have a way of bringing smiles to everyone’s faces. And if you’re just starting out as an entrepreneur, mobile food service is often the first stepping stone to a career in the industry.

And even if you don’t think of your concession stand or hot dog cart as a “real” restaurant, you’re still exposed to the same risks as your favorite celebrity chef. And you can’t prevent fire, vehicle accidents, lawsuits, and more from taking you (and your new business) down.

Thankfully, food vendor insurance can help protect against these risks so you can keep serving up smiles for years to come.


Who Needs Food Vendor Insurance?

If you prepare and/or sell food to the public, you need food vendor insurance!

Here are just a few examples of mobile food vendors who can benefit from this type of insurance:

Beverage Carts
Catering Companies
Concession Stands/Trailers
Food Carts
Food Trucks
Ice Cream Trucks

Keep in mind that, even if you aren’t mandated by law to carry a certain policy for daily operations, these policies may be required if you attend an event, such as a festival or farmer’s market.

And if you operate out of a brick-and-mortar location, check your policy before attending an event. In many occasions, standard commercial insurance doesn’t extend to events; you’ll need either an endorsement or an additional policy.

What Does Food Vendor Insurance Cover?

There is no single “food vendor insurance” policy, but there are a selection of business insurance policies that are crucial for mobile food vendors.

General Liability Insurance

A must-have policy for any business owner, general liability insurance helps pay for legal fees (including settlements and judgments) in the event that you inadvertently cause injury or property damage to a third party.

Property Insurance

It takes a lot of equipment to get food out of the kitchen. Commercial property insurance protects that equipment from things like fires, water damage, and more.

Commercial Auto or Fleet Insurance

As a mobile food vendor, your vehicle is practically another employee—whether it’s a food truck or delivery van. But even if you’re using your personal vehicle to transport that catering order to your client’s wedding venue, you still need a commercial auto insurance policy.

And if you have multiple delivery vehicles or a franchise of food trucks, commercial fleet coverage is a must.

Business Interruption Insurance

Business interruption insurance steps in if you need to close up shop due to a covered loss. You can also get this coverage on a Business Owner’s Policy (BOP) along with general liability and commercial property insurance.

Bodily Injury Liability

Getting into a car accident is one thing—the stakes are a little higher when one of those vehicles is a 15-ton food truck. Bodily injury liability covers any third parties’ medical bills as a result of an accident.

Food Spoilage & Contamination

As a food business, it isn’t just your vehicle and equipment that are your biggest assets. You also need insurance for your food! Food spoilage and contamination insurance helps cover the cost of replacing food that is recalled, goes bad, or spoils due to a covered loss.

Food Liability Insurance

From allergens to bacteria, food can go from asset to liability at the blink of an eye. Your general liability policy likely excludes things like food poisoning, but food liability insurance can cover the gap.

Liquor Liability Insurance

Similarly, your general liability insurance probably also excludes most alcohol-related claims. This is where liquor liability insurance comes in.

Inland Marine Coverage

Inland marine insurance helps cover equipment, materials, and products being transported over land.

Workers Compensation Insurance

Workers comp insurance pays for medical treatment and lost wages for employees injured on the job. If you have more than four (4) employees, Florida law requires you to carry workers’ compensation insurance, but it’s a must for businesses of any size!


What Does Food Vendor Insurance Cost?

As a small business owner, it’s important that you have a firm grasp of your budget, including the cost of insurance. But while there are a lot of things you can learn from a blog post, the cost of your insurance premiums isn’t one of them.

When it comes to what you will pay for your insurance coverage, there are a lot of factors to consider:

Business – For instance, a mobile pizza oven will likely cost more to insure than a lemonade stand.
Policies – The number and type of policies you hold.
Coverage Limits – A $1 million policy will likely cost a good deal more than a $100,000 policy.
Deductible – The amount of your deductible is directly related to the amount of your premiums.
Claims History – The fewer claims you file, the less your premiums are likely to be.

How To Purchase Food Vendor Insurance

The good news? Purchasing insurance for a mobile food business is easy!

Simply speak to an independent insurance agent to identify your risks and compare policies. Because they are not tied to a single insurance company, they can bring you a range of quotes that fit your coverage needs.

Due to their extensive expertise, independent agents are also an invaluable resource for understanding your coverage. Got questions about deductibles or exclusions? Your agent can be your guide!


Take Your Food Business Seriously

Mobile food vendors are in an entirely different category than restaurants. As such, they have different insurance needs.

If you’re looking for the right food vendor insurance to keep your business safe, speak to the friendly agents at Harry Levine Insurance. For the last 40 years, we’ve been helping business owners just like you obtain excellent coverage and we’re always excited to see small businesses thrive!

Contact us today for a free quote!

The post Food Vendor Insurance: What Coverage Do You Need? appeared first on Harry Levine Insurance.

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