What Insurance Do You Need in a Food Business?

What Insurance Do You Need in a Food Business?

In the food industry, it’s up to businesses to manage their own risks – which can range from spoilage and recalls to theft and equipment breakdown.

Even with top-notch risk management, things can go awry. This is where insurance cover comes in – by providing financial protection in case things don’t go according to plan.

Typical insurance covers for a food business include:

  • Property insurance – cover for premises and contents in case of disasters such as storms.
  • Public & Products Liability – to cover claims of injury or loss by members of the public, such as from slips and trips or food poisoning.

  • Theft insurance – covers theft of money, contents or stock by customers, visitors or intruders.
  • Employee dishonesty – to cover theft of property or fraud by an employee.
  • Equipment breakdown – covers the cost of repair or replacement of broken-down or damaged equipment such as cool-rooms or fridges.
  • Management Liability – to protect your managers against  accidental statutory or regulatory breaches such as  employment practice liability and company liability, etc. (e.g. wrongful dismissal, sexual harassment, underpayment of workers, pollution)
  • Stock deterioration – for losses due to food spoilage.
  • Business interruption – for situations where business is “interrupted” (for example due to fire) to cover loss of revenue and ongoing costs.
  • Cyber insurance – in case of online fraud and other cyber crimes.

Every food business is different, so it’s important to speak to your broker about policies tailored to your particular business risks.