Food Vendor Insurance

Food vendors make up some of the smaller businesses in the food world, but that doesn’t mean their everyday operations don’t come with big risks. Food stalls, food trucks, and other vendors take on all the hazards of running a food business. Plus, they deal with a few additional hurdles unique to their business model, such as travel.

Food Vendor Insurance can help ease the burden of risk by helping you financially when the unexpected happens. Whether that’s a customer getting sick from your food, thievery leaving you short equipment or product, or injured employees. There is a type of insurance to cover every food vendor business.

All food vendors should have some type of business insurance. Even with proper food handling and safe business practices, accidents happen. And with the rising cost of food and staffing, food businesses are finding it more difficult when unexpected expenses arise.

“Average food costs are up more than 20% and average wages are up more than 30% from 2019.”

Many venues require vendors to have insurance to participate. But even if that isn’t the case, for your event, insurance is still well worth it to protect your business, your customers, and your assets.

Food vendor businesses that need insurance include:

• Food Trucks
• Food Carts
• Food Stands
• Food Booths
• Lemonade Vendors
• Street Vendors
• Pop-up Food Vendors
• Bakeries and Pastry Shops
• Bakery Distributors

“The customers I meet at our local craft fair are always incredibly kind, so it was the absolute last place I expected someone to steal my cupcakes. Yet, a woman snatched two totes full just as I was unpacking my van. I didn’t realize what happened until I got to my table to set up. Luckily, a security camera caught the whole thing. She was charged for theft, and insurance reimbursed me for the lost product.” – Edna G.

One-Day Food Vendor Insurance can be purchased specifically to cover a single event—say you are serving food at a Farmer’s Market one Sunday. However, a permanent or annual insurance plan provides the most coverage.

An annual food vendor insurance plan protects your business year-round, similar to restaurant insurance. This means that even if something happens outside an event or venue, you are covered. For example, if someone vandalizes or steals your food cart while it’s in storage. Or if you get taken to court for a food poisoning claim.

General Liability Insurance 

The most popular type of insurance for food vendors. It covers various things, including property damage, bodily injury, theft, and lawsuits. Note that a General Liability Insurance policy covers damage caused to other people’s property—not yours.

Commercial Property Insurance 

For vendors that want to protect their business property and its contents (equipment, inventory, furniture). Covers theft, vandalism, fire, or weather-related damage.

Commercial Auto Insurance 

For those that have food trucks or other commercial vehicles. Covers bodily harm and vehicle damage from car accidents or other motor vehicle events.

Workers’ Compensation Insurance 

For businesses with employees. This policy covers medical care, medical bills, lost wages, and disability for employees injured on the job. In most states, this type of insurance is legally required for any business with a certain number of employees.

Business Owners Policy (BOP)

For those needing a combination of General Liability Insurance and Commercial Property Insurance. Business Interruption Insurance can also be included in this policy—it reimburses losses if your business temporarily closes due to theft, fire, or acts of nature.

Inland Marine Insurance

For traveling food vendors that transport equipment and other property. While Property Insurance protects your equipment while it’s stationary, it does not cover damage while in transport. This insurance covers your property as it travels over land.

Product Liability Insurance

Covers if you get sued due to your food products causing bodily injury or property damage. Often combined with General Liability Insurance for extra coverage.

1. Get a Food Vendor Insurance Quote

Complete an online insurance application. It is quick, easy, and available 24/7.

Information that you will need on hand includes:

• Business Information: Name, start year, description of operations.
• Federal EIN
• Contact Information

2. Purchase Your Insurance Policy

Check your email for your insurance quote. Don’t forget to look in your Spam folder. This email will also include instructions for how to purchase your insurance online. Once your payment clears, you will receive your Certificate of Insurance.

If you have any questions or want to customize your insurance policy, please contact one of our insurance agents at 888-592-6631.

Food Vendor Insurance cost varies, but it averages around $100 monthly. This is for a Business Owners Policy (BOP) and General Liability Insurance. Businesses that require additional types of coverage or those with a certain number of employees will have higher premiums.

The cost of your insurance policy will depend on factors like:

• Amount of coverage required
• Business experience
• Business size
• Number of employees
• Past insurance claims
• Revenue

Without insurance, liability for accidents, theft, injuries, and damage falls solely on the business owner. This can be catastrophic for finances and mental health. While vendor insurance can’t prevent misfortunes, it can ensure that these events don’t hurt your food vendor business financially or reputationally.

Specifically, food vendor insurance benefits you by covering:

Injuries & Accidents

Food vendors often set up mobile stores at festivals, sporting events, or anywhere a large amount of foot traffic is expected. As such, accidents can happen quite quickly. Places might get overcrowded and rowdy, resulting in injuries for your employees and customers.

Foodborne Illnesses

Foodborne illnesses resulting from improper storage of ingredients can cause claims or lawsuits. These can be financially devastating for your small business.

Equipment

Whether equipment breaks down or is vandalized, it can be pricey to replace or repair. When primary or singular equipment breaks down (like an oven or fryer), this can also lead to temporary business closure.

Transportation

As your stall, booth, or truck needs to be moved from one place to another, your entire business is exposed to the risk of getting in a road accident. If this occurs, not only can an injury happen, but it can also halt your schedule and daily business operations.

Lastly, food vendor insurance ensures that you are complying with the law. Depending on the state you are operating in, you must have a certain level of insurance coverage to legally make and serve food to the public.

How do I file an insurance claim?

To file an insurance claim, you need to contact your insurance company, send supporting evidence, and work with your claims adjuster.

1. Contact your insurance company in a timely manner. You can do so over the phone, but some companies also accept claims over their app or online submission form.
2. Send supporting evidence to the claims adjuster assigned to your case. This may be photos, videos, or documents relating to your claim.
3. Work with your claims adjuster to provide any additional requested details or documentation. They will look everything over to determine whether your claim is valid and what is covered.

Does food vendor insurance cover for events and festivals?

Yes, food vendor insurance covers events and festivals. You may opt for One-Day Food Vendor Insurance to cover a single event. However, an annual policy provides the most coverage as it covers incidents occurring outside events.

Most food vendors get General Liability Insurance and/or a Business Owners Policy (BOP).  

What are the Food Vendor Insurance policy limits?

 With food vendor insurance, you can choose a $1 million or $2 million limit. The $1 million limit covers most small food vendor businesses. Keep in mind that different limits may be offered by different insurance providers.

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Commercial & Business Insurance Guide. (n.d.). In JW Surety Bonds. Retrieved February 6, 2025, from
https://www.jwsuretybonds.com/business-insurance

Restaurant Insurance. (n.d.). In JW Surety Bonds. Retrieved February 6, 2025, from
https://www.jwsuretybonds.com/business-insurance/industries/food/restaurants