Insurance for Food Establishments
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What Insurance Do Food Establishments Need?
BOP Insurance is a package that combines the coverage of multiple products such as Commercial Property, General Liability and Business Interruption into one. This means that BOP will cover property damage, liability claims related to injuries and income losses if your restaurant is forced to close temporarily among other things.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
This insurance covers a company in the event of a data breach in which sensitive customer information is leaked. These policies cover expenses, such as notification costs, credit monitoring, fines and penalties, defense costs, and loss resulting from identify theft.
Commercial Auto Insurance covers your cars, trucks, and vans used in your business. It covers the costs from vehicle damage in collisions, theft, vandalism and weather damage. It also covers medical expenses for to injured parties.
Liquor Liability Insurance protects a small business that manufactures, sells or serves alcohol. Small business owners are protected from claims that occur when a customer drinks too much and injures himself or someone else.
Product Liability insurance covers your business if you need to recall one of your products. It covers your costs for retrieving the defective product from the manufacturer or seller to prevent any further bodily injury or property damage.
Frequently Asked Questions
Why do Food Establishments need insurance?
In this industry, workers prepare and serve snacks and non-alcoholic beverages. Examples include beverage bars, bagel shops, pretzel shops, cookie shops, coffee shops, and ice cream parlors.
In the event of medical responsibility, a lawsuit or equipment malfunctions, you'll be glad to have insurance. Insurance protects your business from the many known and unknown risks. Insurance will pay the costs of covered expenses, so you don't have to.
What risks do Food Establishments face?
Below are some common risks that food establishments can face:
- A customer suffers from food poisoning from the food you serve. It is later proven that there were bacteria in the food you served which caused the illness.
- While in the kitchen, your worker slipped and fell. Your employee suffers injuries and you are responsible for the expenses.
- Your kitchen catches fire, destroying some of your equipment in the process. This also puts your business at a halt, lowering your income for the day.
How much does insurance for Food Establishments cost?
There are a lot of factors that determine the cost of insurance for food establishments. These include the size of your business, the number of employees you have and the coverage required. Without taking these into account, below is the average cost of some of the most common insurance policies for your business:
- General Liability insurance costs $500 in annual premiums.
- Commercial Property insurance costs $700 in annual premiums.
- Workers' Compensation insurance costs $1300 in annual premiums.