Is Food and Beverage insurance required by law?

Find out if you legally need to have insurance for your food and beverage business.

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.

Typically — no, but other regulations may need to be in place, such as food handler licenses. According to the Bureau of Labor Statistics, the food and beverage industry had 93,800 non-fatal injuries and illnesses in full-service restaurants in 2019. So, with various liabilities that may happen, food and beverage insurance could help save costs in case of these unfortunate events.

» Want to know more? Find out the common restaurant business insurance claims

Which policies can Food and Beverage insurance include?

While food and beverage insurance may not be legally required, it's still worth looking into, as it can greatly benefit your food and beverage business.

Here are some policies that this coverage can include:

  • General liability insurance: This policy can cover third-party bodily injuries, property damage and advertising injuries. Some states may require this coverage before you can sell food goods.
  • Workers' comp insurance: Should your employees suffer any work-related injuries or illnesses, this policy can help. Legally, this can be required if you have any employees.
  • Commercial property insurance: If you experience any business property damage from perils such as fire, theft or vandalism, this policy can provide financial support.
  • Commercial auto insurance: For damage or injuries from accidents involving vehicles used for business purposes, this policy can provide protection.
  • Liquor liability insurance: This can help cover alcohol-related accidents and injuries. It can be legally required if you are selling or serving alcoholic beverages.

How NEXT can help with Food and Beverage insurance

From restaurant owners to private chefs, food and beverage insurance can cover numerous risks and help protect your business. And NEXT can help by offering affordable, tailored business insurance.

To view your options, you can get an instant quote online in less than 10 minutes. Once you've purchased the coverage you need, you instantly get your certificate of insurance and can share it 24/7 with the NEXT app. With the right coverage, you can focus on providing excellent customer service with peace of mind.

NEXT: Tailored Small Business Insurance

4.7/5(5,056 reviews)