What can lower the cost of food and beverage insurance?

Find out what can help lower your food and beverage insurance costs and strategies you can try to minimize risk.

Aditya Raghunath - Writer for NEXT Insurance
By Aditya Raghunath
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 29, 2023.

Food and beverage businesses face unique challenges that can put them at risk of financial loss. As a result, food and beverage insurance can play a crucial role in protecting these businesses by providing protection for covered incidents like property damage, liability claims and inventory spoilage.

Various factors can impact the cost of food and beverage insurance, including:

  • Type of food service business and size: For example, a small food truck might have lower insurance costs than a large restaurant. Consider bundling coverage or increasing deductibles to help lower costs.
  • Type of coverage: More comprehensive coverage can be more costly. You can customize a policy that provides the coverage needed at a cost-effective price.
  • Payroll and kinds of employee jobs: For instance, businesses with employees who handle food may face higher insurance premiums. You can encourage employees to practice safe work habits to reduce the risk of accidents.
  • Number and types of vehicles: If you use numerous business vehicles, your insurance costs may be higher. Think about investing in vehicle safety features and encourage safe driving habits among employees to reduce the risks.
  • Location: If your business is located in high-risk areas, you may face higher insurance costs.
  • Claims history: A history of claims can cause higher insurance costs because it can indicate higher liability risk. Effective risk management strategies and consulting an insurance provider can help you reduce future claims costs.

» Do you run a catering business? Check out how to get your catering business license

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