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Though considered modest compared to fine dining establishments, food stalls face the same risks and hazards as full-sized restaurants. From theft and vandalism to property damage and bodily injuries, food vendors are exposed to a tremendous amount of risk on a daily basis.
Having food vendor insurance in place will keep you and your business financially free from any liabilities that may arise in case an accident takes place that leads to a lawsuit or a claim.
Why Do Food Vendors Need Insurance?
While food stands and stalls take up less space compared to franchise restaurants, the dangers food vendors face every day are very similar to their fancier counterparts.
Food vendors often set up mobile stores at festivals, sporting events, or anywhere a large number of foot traffic is expected. As such, accidents can happen very often. Places might get overcrowded and rowdy, which may result in injuries for both your employees and customers.
Foodborne illnesses resulting from improper storage of ingredients can be the source of multiple claims or lawsuits, which can be financially devastating for your small business.
Sometimes your stalls need to be transferred from one place to another. And in such a case, your entire business is exposed to the risk of getting in a road accident, which can halt your schedule and daily business operations.
In other cases, food vendors - depending on the state they are operating out of - must have a certain level of insurance coverage before they are legally allowed to make and serve food to the public.
What Types of Insurance Do Food Vendors Need?
There are a number of insurance policies available to food vendors. The level of coverage they take out will depend on the size of their business, the number of employees the business has, the location where the business operates, and the type of products that are sold.
Take a look below to find out the most recommended insurance policies for food vendors.
How Much Does Food Vendor Insurance Cost?
The premium food vendors are expected to pay for insurance will depend on a number of factors including the size of the business, the level of coverage you opt-in for, the number of staff you have, the type of products you sell, and more.
The average food vendor in America pays around $60 per month or $720 per year on business owner’s insurance. With business owner’s insurance, your business is protected against sudden interruptions to your day-to-day routines.
Employees are the key to successful businesses, and as a business owner, you have the obligation to secure their safety in the workplace. The average food vendor in the U.S. pays around $100 per month or $1,200 per year on worker’s compensation insurance. This policy provides cover in case an employee gets injured or falls sick at the workplace.
General liability insurance for food vendors is another crucial policy recommended to businesses in the industry. This policy will protect your business from any claims and lawsuits related to third-party bodily injuries and property damage. Food vendors can expect to pay between $30 and $50 per month or $360 and $600 every year for general liability insurance.
Typical Food Vendor Insurance Claims
Typical insurance claims for food vendors are often related to physical injuries, equipment or property damage, and in some cases, lawsuits caused by food poisoning.
Having the right food vendor insurance policy in place can protect you and your business against any financial losses arising from legal action - whatever the reason behind it might be.