Best Food Liability Insurance of January 2023

Thimble has flexible coverage that’s widely available

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Food vendors, food truck owners, caterers, restaurant owners, and anyone else in the food service industry should protect their business and customers in case something goes wrong. One of the most valuable policies for food businesses is general liability insurance, which covers third-party bodily injury and third-party property damage claims.

But food business owners should consider additional types of food liability insurance, such as food spoilage or food contamination insurance, product liability insurance, and liquor liability insurance (among others). The following businesses all offer general liability coverage as well as some or all of these additional types of coverage.

Best Food Liability Insurance of January 2023

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Best Food Liability Insurance of January 2023
Best Food Liability Insurance of January 2023

Best Overall : Thimble

Investopedia's Rating
4.8

Thimble Insurance

 Thimble Insurance

Why We Chose It

Thimble offers a variety of insurance policies for food vendors and food businesses, with flexible options to purchase insurance only when you need it. 

Pros & Cons
Pros
  • Most policies are available in all 50 states

  • Policies are occurrence-based

  • Easy to purchase food liability insurance online

  • Coverage is available by the hour, day, week, month, or year

Cons
  • Doesn’t sell commercial auto insurance

Overview

You can purchase a policy by the hour, day, week, or year. For yearly traditional plans you will have some flexibility between monthly or yearly payments. Thimble’s general liability coverage starts at $17 per month, but the average is more around $42 per month and $504 for those who pay yearly.

Most of Thimble’s food vendor insurance policies are sold in all 50 states and you can choose coverage limits of $1 million or $2 million, depending on your needs.

We also like that all of Thimble’s business insurance policies are occurrence-based, which means you’re covered against all claims that take place while the policy is in effect, even if the claim isn’t brought until after you cancel your coverage.

Note that Thimble doesn’t sell commercial auto insurance, so it may not be a good option if you need to insure a work vehicle.

Best for Liquor Liability Insurance : NEXT Insurance

Investopedia's Rating
4.7

Next Insurance

Next Insurance

Why We Chose It

Next offers a wide selection of insurance types for food businesses, including liquor liability insurance.

Pros & Cons
Pros
  • Sells liquor liability insurance

  • Affordable general liability insurance premiums

  • Most commercial insurance policies are occurrence-based

  • Instant online quotes

Cons
  • Some policies are not sold nationwide

Overview

If your food services business sells alcohol, Next is a great option for liquor liability insurance

Liquor liability insurance protects your business from the legal risks of serving alcohol, including bodily injury and property damage claims, and your legal fees. Currently, Next sells liquor liability coverage in 38 states.

Next offers a very broad selection of commercial insurance policies for food service businesses, most of which are occurrence-based policies (except for professional liability insurance). You can get a quote for any policy online in just a few minutes.

Next also has very affordable general liability coverage, starting at $11 per month.

One of the downsides of Next is that most policies are not sold in every state. When entering your location to get a quote, you will be shown your options.

Best Financial Stability : BiBerk

Investopedia's Rating
4.3

biBERK

biBERK

Why We Chose It 

BiBerk has an A++ (Superior) financial strength rating from AM Best and is part of the Berkshire Hathaway Group.

Pros & Cons
Pros
  • Superior financial strength rating

  • No revenue limit for BOPs

  • Can purchase a policy online

Cons
  • Limited state availability for some policies

Overview

The Berkshire Hathaway-owned company has an A++ (Superior) financial stability rating from AM Best, which indicates that BiBerk has a superior ability to meet policyholder obligations.

We also like that BiBerk has no revenue limits in place for BOPs. For comparison, the Insurance Information Institute reports that $5 million is a typical limit, but it of course varies with each company.

BiBerk makes it easy to purchase a food liability insurance policy online, or you can speak to a licensed agent. However, not all policies are available nationwide.

Best for Larger Small Businesses : Chubb

Investopedia's Rating
4.1

Chubb logo

Chubb

Why We Chose It

Chubb’s BOP has a high annual revenue limit and the company offers a broad range of customized coverages, making it ideal for businesses with broader insurance needs. 

Pros & Cons
Pros
  • Comprehensive coverage for large businesses

  • A++ financial strength rating

  • Few company complaints

Cons:
  • Can’t purchase a policy online

Overview

The annual revenue limit for Chubb’s BOP is $30 million. So if your food service business is scaling quickly, Chubb might be a good choice for food liability insurance plus your other commercial insurance coverage needs. 

In addition to a business owner’s policy, general liability, and commercial auto insurance, Chubb also sells equipment breakdown coverage, all-risk spoilage/change in temperature insurance, business income insurance, product recall insurance, umbrella insurance, and more.

Chubb also provides risk protection services, like a workplace safety analysis, cyber risk assessments, and infrared thermography to identify hotspots in a restaurant or kitchen. 

In terms of third-party ratings, Chubb has an A++ (Superior) grade from AM Best, and it had fewer complaints than expected over the last three years, according to the National Association of Insurance Commissioners (NAIC). However, Chubb doesn’t allow you to purchase a policy online, so you’ll need to contact an agent when you’re ready to buy. Quotes for some policy are available online though.

Most Affordable Food Liability Insurance : FLIP

Investopedia's Rating
4.1

Food Liability Insurance Program (FLIP)

Food Liability Insurance Program (FLIP)

Why We Chose It

FLIP offers very affordable food liability insurance packages for small food businesses. 

Pros & Cons
Pros
  • Available in all 50 states

  • Low premiums

  • Can purchase online

Cons
  • Revenue limit capped at $500,000

  • Claims-made policies only

Overview

You can purchase a FLIP food liability package in all 50 states, and it’s easy to get a quote and apply for coverage online. Coverage includes general liability, product liability, damage to premises rented by you, and business personal property coverage. Rates for these coverages start at $299 per year, which is among the lowest prices we saw.

In addition to its food liability package, FLIP also sells a trailer endorsement for food truck businesses with a trailer, professional liability insurance, and cyber liability insurance.

FLIP’s commercial insurance policies are claims-made policies, which means you are only covered for incidents that occur and are reported while your coverage is in effect. 

While FLIP is an excellent option for some food business owners looking for a BOP, you can only get coverage if your business brings in $500,000 in gross revenue or less. If your business is larger than that or growing quickly, FLIP may not be the best insurer for you.

Best Marketplace : CoverWallet

Investopedia's Rating
3.8

CoverWallet

CoverWallet

Why We Chose It

If you’re purchasing food liability insurance for the first time, CoverWallet offers a lot of great resources.

Pros & Cons
Pros
  • Helpful educational resources for food business owners

  • High revenue limits for BOP

  • Good selection of commercial insurance policies available

Cons
  • Can’t buy a policy online

Overview

Using CoverWallet's free advice tool, you can get matched with recommended policies and coverage limits based on your industry, location, number of employees, and annual revenue. You can find helpful articles about policy types, FAQs, tips for growing your business, and more. 

CoverWallet’s commercial insurance policies are underwritten by some of the most reputable brands in the insurance industry, like Hiscox, Progressive, Chubb, Travelers, and Liberty Mutual.

The company offers many different insurance policies that can be beneficial for food service businesses, like commercial auto, liquor liability, commercial property, workers’ compensation, and business interruption insurance.

CoverWallet is one of the only “best” food liability insurance companies we reviewed that doesn’t sell policies online. You can apply online through the website, but you must speak with an agent to purchase. 

Final Verdict

Based on our review of almost 20 food liability insurance companies, we determined that Thimble is the best overall. All of Thimble’s policies are occurrence-based policies, and you get a quote and buy coverage online. We also like that Thimble offers flexible policies, whether you need year-round protection for your restaurant or one-day coverage for a farmer’s market.

While Thimble can be an excellent food liability insurance company, one of the biggest downsides is that it doesn’t sell commercial car insurance. If you need to insure delivery vehicles or food trucks, all of the other best food liability insurance providers we reviewed offer this policy. We recommend getting quotes from a few providers to find the best coverage and rate. 

What Is Food Liability Insurance?

Liability insurance protects your business from third-party claims related to bodily injury or property damage. It compensates the third party for their losses and pays your business’ legal fees if you get sued. Food liability insurance is liability insurance for food businesses, and often includes product liability coverage, which would cover a claim if a customer gets sick after eating your food.

Does Business Insurance Cover Food Spoilage?

Most business insurance policies do not include coverage for food spoilage, which provides compensation if food becomes unusable due to a covered loss. If you want this coverage, you’ll probably need to add a specific food spoilage or food contamination endorsement to your policy. However, it’s important to read the fine print to see what’s covered. For example, you may need to add other endorsements, like utility coverage or equipment breakdown coverage, for food spoilage due to a power outage.

What Is Food Truck Insurance?

Food truck insurance often includes general liability insurance and commercial auto insurance plus commercial property coverage. It covers potential losses you might face when you operate a food truck, like customer injuries and property damage claims, as well as accidents that may occur while driving your food truck. If your food truck is a trailer that you tow behind a vehicle, you may need to add a trailer endorsement to your insurance policy for sufficient protection.

How Much Does Business Liability Insurance Cost?

The cost of business liability insurance could be as low as $200 per year for a small business that doesn’t need much coverage. Or, it could be many hundreds of dollars per year or more. The cost of business liability insurance depends on several factors, like your location, industry, number of employees, coverage limits, deductible, and endorsements.

Methodology

To determine the best food liability insurance companies, we compared 19 insurance providers offering food-specific liability coverage on the basis of cost, availability, customer satisfaction, coverage, the buying experience, and company stability. We favored companies that make food liability insurance affordable and easy to purchase, have satisfied customers, offer comprehensive coverage, and are financially stable. Please see our full methodology for further details.

Cropped shot of young Asian woman carrying a shopping basket, grocery shopping food liability insurance

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Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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