The deli industry in the United States generates about $40 billion a year in revenues. If you own a delicatessen in Arizona, you can help it stay profitable in times of trouble by purchasing the right deli insurance products.
Local independent agents can help you find comprehensive, yet affordable, coverage for your delicatessen. These experienced professionals can explain your various options and can help you find the best and most affordable policies to meet your store’s specific coverage needs.
Contact an insurance agent near you to get started.
What Is Deli Insurance?
This insurance is designed to offer protection against most of the risks you might face as a deli owner in Arizona.
How Much Does Deli Insurance Cost in Arizona?
The cost of insurance can vary from one deli to the next. Here are factors that can influence your rates.
- The size of your deli and its expected annual revenues
- The number of workers you employ
- The age and quality of your equipment and machinery
- Whether your deli offers catering and/or delivery services
- Your deli’s employee safety plan
- Your deli’s claims history
To find out how much deli insurance coverage will cost for your specific business, you can contact a few competing insurance providers to request customized quotes. Or, if you prefer, you can ask an independent insurance agent to save you time by doing this on your behalf.
What Does a Deli Business Owners Policy Cover?
For owners of small delis, the most economical way to obtain coverage is by purchasing a business owners policy (BOP) and then adding on additional commercial insurance product, as needed.
You can expect your BOP to provide the following types of coverage.
- Commercial general liability insurance (CGL): This can cover expenses like court costs, legal fees, mediation fees, settlements, and judgements if your deli is sued for a covered event. General liability insurance includes the following.
- Premises liability coverage: This can provide coverage if a customer is injured in an accident while on your business property.
- Product liability coverage: This can cover your business if the food or beverages you are serving in your delicatessen are somehow contaminated and cause your customers to get sick.
- Advertising liability coverage: This can cover your deli if you are accused of illegal marketing practices like copyright infringement.
- Coverage against accusations of libel or slander
- Commercial property insurance: This can cover expenses related to to rebuilding, repairing, or replacing any business-owned property that has been lost or damaged by a covered event. Here are examples of covered events.
- Fires, including accidental fires and wildfires
- Property crimes, including theft, burglary, or vandalism
- Severe storms, including thunderstorms and windstorms
- Monsoons (but not any flood damage they may cause)
- Business interruption insurance: This can provide a continuation of income if your deli is forced to close down for an extended time while repairs are made to damage caused by a covered event. Coverage can continue until your deli is able to resume normal operations.
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What Additional Liability Insurance Products Can Protect Your Arizona Deli?
Commercial general liability insurance covers against many of the risks your deli may be exposed to, but it doesn’t cover everything. That is why you may want to add the following commercial liability products to your business owners policy.
- Employment practices liability insurance (EPLI): This can cover your deli if a current, former, or prospective employee makes an accusation of illegal employment practices such as harassment, discrimination, or wrongful termination.
- Cyber liability insurance: This can cover your deli if criminals hack into your business computer system and access employee or customer information that you have stored electronically.
- Commercial vehicle liability insurance: This is only necessary if your deli provides catering or delivery services and has company-owned vehicles. This insurance can cover your increased liability risks if you or one of your drivers causes a collision while driving a company car, van, or truck.
It is important to ensure that your business is appropriately covered with the right insurance products so that it is protected against all its liability exposures.
What Additional Property Coverage Can Help Your Arizona Deli?
Whether you purchase a BOP or a traditional business insurance policy, it will include commercial property insurance. This insurance covers a lot, but it doesn’t cover everything.
You may therefore want to add the following policies to your coverage package.
- Equipment breakdown insurance: This can cover repair or replacement costs if your well-maintained equipment, such as cooling units and slicers, malfunctions due to problems like power surges, mechanical breakdowns, or even employee errors.
- Spoiled food insurance: Most of the food items in your deli require refrigeration or freezing. If your cooling system fails, these perishable items will need to be thrown away. Spoiled food insurance can provide you with compensation for your spoiled food. This coverage is often included as part of your equipment breakdown insurance.
- Commercial flood insurance: This is important because flood damage is not covered by commercial property insurance. To protect your deli, particularly during Monsoon Season, you may want supplement your BOP with a flood insurance policy through the National Flood Insurance Program (NFIP), a program managed by FEMA.
- Commercial earthquake insurance: Earthquake damage is also excluded from commercial property coverage. Some parts of Arizona have a fair to moderate risk of experiencing earthquakes. If your deli is located in an active seismic zone, you may want to supplement your BOP with earthquake insurance.
When you have the right property insurance products in place, you can rest assured that if a disaster strikes in your area, your deli’s valuable property will be fully covered.
Is Workers’ Compensation Insurance Required for Delis in Arizona?
Workers sometimes get hurt on the job. Some ways this may happen at your deli include if an employee slips on a wet floor, injures their hand while using the meat slicer, or suffers a back injury while unloading deliveries.
Fortunately, workers’ compensation insurance has you covered. This insurance is designed to shield your employees from financial losses related to workplace injuries by covering things like the following.
- Emergency medical care
- Follow-up doctor’s appointments
- Physical therapy
- Prescription medications
- Medical supplies like slings and crutches
- Disability pay if injured workers must take time off to recuperate
Workers' compensation insurance has the added benefit of preventing your business from facing potential liability lawsuits related to these injuries.
If your deli has at least one employee, you are required by Arizona state law to carry workers’ compensation insurance. You must purchase coverage for everyone who works for you, including minors and family members.
How Can an Independent Insurance Agent in Arizona Help?
Local independent agents can offer guidance and support as you navigate through your various coverage options and build your customized deli insurance policy package.
Because they are not tied to a particular insurance company, these agents are free to compare a policies and rates from several insurance providers. This helps them be sure that the policies they are recommending provide the coverage you want at the most competitive prices.
There are more than 400 independent insurance agencies in Arizona. Set up an obligation-free consultation with an insurance agent near you to get started.
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