How Much Does Food Poisoning Insurance Cost for Restaurants

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What is Food Poisoning Insurance?

Owning a restaurant can be an exciting experience. Serving people your creations and satisfying their palettes is the reason you got into this business. Food can be such a comfort for people and when someone else is cooking it, it is even better. But what happens If somehow one of your customers ends up with food poisoning? You probably have procedures in place to avoid this, but unfortunately, contamination and other human errors can happen no matter how much you prepare. If you end up getting sued because someone got sick, and with the litigious society we live in that is extremely likely, you need to have Food Poisoning insurance to pay for it. One claim with this type of issue can bankrupt your business. Even if you did nothing wrong, the bad publicity alone can be enough to force you to close down. Food Poisoning insurance can help avoid this.

Do You Need Food Poisoning Insurance?

Regardless of how well you watch your employees, what types of measures you ensure to avoid food contamination resulting in poisoning, things can happen. Maybe the truck that delivered your food had a broken refrigeration system and did not realize it. Perhaps your cook left the chicken out a little too long and it grew bacteria. An employee could have been sick and transferred that onto the food. General Liability insurance will cover the lawsuit pertaining to the customer getting sick. If you are looking for coverage to replace the food that will have to be replaced due to this event, you should also have Food Contamination insurance which is a separate policy. If you own any of the following types of business, or any that serve food, you should have Food Poisoning insurance:

  • Restaurant
  • Bar
  • Catering Company
  • Coffee Shop
  • Deli
  • Ice Cream Parlor
  • Specialty Dessert Shop

What is Covered Under Food Poisoning Insurance?

Food Poisoning insurance will cover the following when it comes to a covered claim.

  • Bodily injury including medical expenses – If the food is contaminated and a customer, or several, gets sick then you will be able to pay for their doctor or hospital bills through this policy. Additionally, if it causes major issues from being something like E. coli, you will probably be sued. The limit on your policy will be the maximum limit you can use, so be sure to pay attention to that.
  • Defense costs including judgments – A huge cost when it comes to claims is defense costs. The court fees and lawyer fees can add up quickly, putting a huge strain on the business. General Liability will cover these costs. Be sure to know if the defense costs coverage is included in the liability limit, or if it is in excess to it. This is important information since they can add up so quickly. If you end up having to pay a judgment in addition to paying the lawyer and court fees, you want to make sure you have enough coverage limits.

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How Much Does Food Poisoning Insurance Cost?

Many insurance companies specialize in Restaurant insurance and food-related business so they can offer bundled insurance policies for a very affordable rate. General Liability by itself usually starts around $500 for the year. Things that will impact this price include coverage limits, your annual receipts, past claims history, and experience.

What is Foodborne Illness and How Much Does it Cost?

Foodborne illnesses such as E. coli can cause major damage to your business should it happen to you. These claims can range anywhere from a couple thousand to millions of dollars. There was a Food Poisoning claim in Nashville that reached over $6,000,000. When you see that number does it scare you? If so, make sure you get Food Poisoning and Food Contamination insurance today.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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