Frozen Food Seller Insurance

Your Guide to Frozen Food Seller Insurance

Business insurance 101

Chefs preparing frozen meals for distribution. Find frozen food seller insurance.

Frozen food sellers are part of the “direct selling establishments” industry. This industry includes establishments primarily engaged in retailing merchandise via direct sale to the customer by means such as in-house sales, truck or wagon sales, and portable stalls (i.e., street vendors).

Frozen food sellers often use the truck sales method, taking and delivering orders door-to-door while driving a particular route. Some may have physical retail spaces as well, and the focus for these businesses is selling frozen foods.

Frozen food seller insurance is important to protect your business. It can help you protect your assets when something goes wrong. An independent insurance agent can help you get the customized business insurance you need.

Why Do You Need Frozen Food Seller Insurance?

Frozen food sellers need a variety of business insurance policies to protect them from numerous property and liability risks. These policies can help you pay for the following items.

  • Help you pay for repairing and replacing damaged property
  • Help you cover expenses during a temporary closure
  • Help you pay defense costs and damages if you are sued
  • Help you pay for expenses due to food spoilage or a product recall

Frozen food seller insurance helps you recoup your losses when you're faced with these and other costly problems.

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Types of Frozen Food Seller Property Insurance

Talk to an insurance agent about which of the following types of policies you need to protect yourself from the costs associated with property losses.

  • Commercial property insurance: Protects your building and other property in the event of a covered loss, such as fire, vandalism, smoke, or theft. It provides coverage for physical damage to equipment and machinery, factories, warehouses, office space, office equipment, computers, and more.
  • Business interruption coverage: Protects your earnings and helps to pay expenses if your business is unable to operate because of damage caused by some type of covered property loss.
  • Equipment breakdown insurance: Often referred to as boiler and machinery coverage, this supplements your business property insurance. It covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage or loss.
  • Utility interruption coverage: Reimburses you for costs related to breakdowns in utility services (e.g., water, electrical).
  • Cargo and goods-in-transit coverage: Including ocean marine coverage and/or inland marine coverage, this protects your products as they are transported from place to place.
  • Spoilage coverage: Offers financial protection for the costs of goods that spoil onsite.

These policies can be customized for your unique needs.

Types of Frozen Food Seller Liability Insurance

In addition to coverage for property losses, you also need protection when someone accuses you of negligence. These are typically cases in which you’ve caused bodily injury or property damage to a third party.

  • Commercial general liability (CGL) insurance: This is necessary for occasions in which your business is negligent and causes bodily injury or property damage to a third party. Your CGL policy provides coverage for attorney fees, court costs, settlements, and judgments up to the limits of your policy.
  • Product liability insurance: Covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of your product. If you are sued because a tainted food product makes someone sick, you may be required to pay for medical costs, compensatory damages, economic damage, attorney fees, court costs, and more.
  • Commercial auto insurance: Covers your vehicle fleet and drivers in the event of an accident or other vehicle damage. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage, and medical bills, as well as any costs related to lawsuits due to auto accidents involving your frozen food trucks.
  • Commercial umbrella insurance: Provides an extra layer of liability protection to any of several other policies you might have. It is activated when the limits of your other applicable liability policies have been exhausted, protecting you when a claim exceeds the amount of coverage available from any other applicable policy.
  • Cyber liability insurance: This is important for any business that uses, transmits, or stores electronic data. It pays for any costs related to a cyber breach as well as any related legal costs if a customer or supplier who was harmed by the breach sues you.

An independent insurance agent can help decide which of these policies you need to fully protect your business.

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The Importance of Product Recall Insurance

Product recalls are a major source of danger for any business that manufactures, sells, or transports food. If you are forced to recall one of your frozen food products, the costs can be devastating. While the immediate costs of product removal and disposal can reach into the millions of dollars, the ongoing impact on your reputation, sales, and stock price can lead to irreparable damage.

Product recall insurance can help you. It typically covers a wide range of costs related to a food recall, including the following.

  • Actual recall costs (product removal and disposal)
  • Loss of profit
  • Product replacement
  • Extra expenses
  • Reputation rehabilitation expenses (public relations and communications costs, etc.)

Product recall insurance is likely essential for your business. An independent insurance agent can help you get the coverage that you need.

Protect Your Employees with Workers’ Compensation Insurance

Excessive employee injuries and illnesses can be financially devastating for your business.

Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it will provide death benefits for a worker’s dependents if there is a fatality.

Frozen food sellers should work with an independent insurance agent who has experience helping employers like you find workers’ compensation coverage.

How Much Does Frozen Food Seller Insurance Cost?

A number of variables that are unique to your business help determine how risky you are to insure, and consequently how costly your frozen food seller insurance will be. These factors include the following.

  • The number of employees
  • Whether or not you operate out of a permanent or temporary retail location, and the size and location(s) of these buildings or structures
  • The number of frozen food trucks you operate
  • Volume and geographical distribution of your products

The size of your business and the types of policies you need to cover your unique risks are the biggest predictors of how much your business insurance will cost.

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Benefits of an Independent Agent

An independent insurance agent who has experience working with frozen food sellers and other similar businesses can help you decide the types and amounts of coverage that you need for your business. The choices you make will determine your cost of coverage.

Independent agents can work with numerous, reputable insurance companies who specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Find and Compare Quotes for Frozen Food Seller Insurance

Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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TrustedChoice.com Article | Reviewed by Paul Martin

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