As a food service contractor, you typically work in establishments owned by someone else, like stadiums, schools, mega malls and company HQs. But no matter if you provide cafeteria services in a corporate building or you run a small coffee shop in a hospital, you’ve got your fair share of interests worth protecting. And the best way to protect it all is with a proper, and thorough, food contractor insurance portfolio.
Fortunately, our independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a hand-picked selection of top insurance policies to cover both your business and your employees. But first, let’s talk more about the protection you need and why you need it.
Why Do I Need Food Service Contractor Insurance?
Insurance policies are designed to protect businesses from having to face large financial losses that can otherwise cause them to fail. But those in your industry have a unique set of risks that need coverage. For example, consider the following scenarios:
- Several people are sickened by a foodborne illness after eating food prepared and sold by your business. Some require hospitalization. Your business is sued.
- A mechanical breakdown of your freezer or refrigeration unit causes thousands of dollars’ worth of food to be contaminated, requiring you to throw the food away.
- The establishment in which your food service business is located is severely damaged by a storm, requiring you to close its doors for two months while repairs are made. Your business can’t generate any income during this time period.
These are just a few examples of problems that can be protected and/or minimized by carrying the right types of business insurance.
Property Insurance for Food Service Contractors
Food service contractors have a number of property-related exposures — depending on their services and business contracts — that require the right coverage. An independent insurance agent can help provide the guidance you need to land the proper coverage — no more and definitely no less. Start with your agent by discussing:
- Business property insurance: As a contractor, your business will most likely be located on the property of the business that hired you. It’s important that you understand the terms of your contract so that you are aware of what, or how much of the provided business property, you’re responsible for covering. Typical the property owner covers things like appliances, shelving, and the dining area, but you’ll also want to make sure any cooking or serving materials you bring with you are protected.
- Boiler and machinery insurance: If there’s a breakdown of your appliances or the heating or cooling in your establishment, you could be forced to close until repairs are made. Whether or not you’re responsible for covering the machinery in your business depends on the terms of your contract. But if you do need to purchase your own coverage, boiler and machinery insurance can help you manage the costs of repairing, replacing, or renting new units.
- Spoilage insurance: This may be part of your boiler and machinery coverage, or you can also purchase it separately. It compensates you for spoiled food if a covered disaster forces you to throw away large quantities of expensive food products.
Liability Insurance for Food Service Contractors
Liability insurance shields your business from the financial loss that comes with lawsuits. It covers court costs, legal defense fees, and financial damages. However, you need to have the right types of coverage in order to be fully protected against potential lawsuits. Your independent insurance agent can talk to you about coverages like:
- General liability insurance: This coverage is a standard part of any business insurance policy. It covers injuries and property damage sustained by third-parties while visiting your business. It also includes product liability insurance, which protects you if someone becomes ill from your food.
- Commercial vehicle liability insurance: If you have business-owned cars, trucks, or vans that you use for any sort of business purposes, you need to cover them with a commercial vehicle insurance policy.
- Hired or non-owned vehicle insurance: This provides liability protection if an employee is responsible for an accident while driving their own vehicle for work-related purposes.
- Employment practices liability insurance: This protects your business if a current or former employee sues for harassment, discrimination, wrongful termination, or any other illegal business practice.
Your independent insurance agent can help you determine the types of liability coverage that are right for your business.
What Other Insurance Policies Should You Consider?
When you’re working to cover your insurance portfolio’s risk exposures, your independent insurance agent may recommend other types of insurance, depending on the scope and nature of your business, like:
- Continuation of income insurance: Also referred to as business income insurance, this coverage allows your business to collect income if a covered event forces you to temporarily halt operations. So if the business that has hired you under contract has to close for repairs, you can continue to make your required monthly payments and pay employee salaries. This coverage typically lasts until your business can get back to normal operations, or up to 12 months.
- Workers compensation insurance: Required in most states, this insurance is a good idea regardless of where your business is located. It provides coverage for medical treatment and necessary time off if an employee is injured on the job.
Workers compensation insurance is particularly important in the food service industry, where employees commonly experience serious burns or cuts that require stitches.
- Health insurance: While businesses with fewer than 50 full-time employees aren’t required to provide health insurance benefits to their workers, some small businesses prefer to offer it anyway as a way to attract and retain good employees.
- Umbrella insurance: This provides your business with extra liability coverage. If you feel your current coverage limits are too low to properly protect your business, you can purchase additional coverage through an affordable umbrella insurance policy. This coverage provides coverage when the liability limits of your other policies are exceeded.
Comparing Food Service Contractor Insurance Quotes
Our independent insurance agents will review your needs and help you evaluate which food service contractor insurance coverages make the most sense for your business. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up — in a comprehensive and affordable way.
What's So Great About Independent Insurance Agents?
Independent insurance agents excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.