Do I need food and beverage insurance if I serve pre-packaged food?

If you sell pre-packaged foods, is food and beverage insurance crucial? Find out how it and other coverage options may help.

David Granahan - Writer for NEXT Insurance
By David Granahan
Kelly Hendrickse - editor for NEXT Insurance
Reviewed by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 29, 2023.

It depends. Some government agencies and business partners may require you to have some insurance before you can sell pre-packaged food in, for example, retail grocery stores.

And if you have a kitchen or deli counter where the food is prepared, food handlers licenses could be needed.

Like any food and beverage business, serving pre-packaged food can come with risks. According to the National Library of Medicine, proving pre-packaged food to be the exact cause of a customer's illness can be difficult. However, this can lead to bad publicity and loss of sales. So, food and beverage insurance is an important consideration.

Which policies can help?

Food and beverage insurance has several types of coverage that can help protect your business from risks associated with pre-packaged food.

  • General liability insurance: Customer injuries and product advertising harm can be covered by this policy. For example, if a customer sues you because of an inaccurate label on a pre-packaged item.
  • Workers' comp insurance: This can protect you financially if an employee is injured during work-related tasks. It is often legally required if you have employees.
  • Commercial property insurance: Damaged business property and pre-packaged food items can be covered for replacements.
  • Commercial auto insurance: If you or an employee uses a business vehicle to transport the pre-packaged food, this policy can provide financial support for accidents.

How NEXT can help businesses serving pre-packaged food

Every business is different, and you may opt to purchase some policies but not others depending on your location and business type.

With NEXT, you can explore affordable food and beverage insurance and other business insurance tailored to your needs. Once you've chosen what works for you, you can get a certificate of insurance quickly and access it 24/7 from the NEXT app. Then, you can focus on your service and customers without worry.

NEXT: Tailored Small Business Insurance

4.7/5(5,056 reviews)