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food & beverage INdustry

Specialized Property Insurance:

  • Buildings, Business Personal Property, Tenant Improvements and Betterments
  • Business Income & Extra Expense – Actual Loss Sustained
  • Business Income due to off-premises utility interruption
  • Employee Dishonesty
  • Personal effects of customers
  • Food spoilage – Covers a loss of perishable stock caused by temperature or humidity changes brought by certain mechanical breakdown or failure, contamination by refrigerants and power outages beyond your control
  • Food contamination – Pays for equipment cleaning, food replacement, certain medical expenses, loss of income, and advertising expenses related to a government-mandated, contamination-related shutdown
  • Equipment Breakdown – Covers physical damage to refrigerators, cash registers, POS systems, ovens, heat/AC units due to mechanical breakdown, short circuits, operator error, power surges and more


  • Premises and Operations
  • Products/Completed Operations
  • Personal and Advertising Injury
  • Medical Payments
  • Employment Practices Liability
  • Non-owned auto for delivery
  • Cyber Liability

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Establishments serving food and alcohol need a unique kind of protection for a number of reasons.  Your expertise in the industry means that you know better than most the risks that come with serving alcohol. Sometimes, things don’t always go as you plan and accidents do happen.  When disaster does strike, your business’s income, the livelihood of your employees, and even reputation are all at stake.

At Spire Insurance Solutions, we believe in the importance of the right insurance coverage for protecting your business and ensuring long-term success. We offer a range of coverages designed to safeguard your establishment, from general liability and property insurance to liquor liability and worker’s compensation.

This insurance guide will help you:

Insurance companies determine pricing for the food and beverage industry by considering several key factors. These factors help them assess the level of risk associated with insuring a specific business within the industry. Here are some common considerations:

  1. Type of Establishment: The nature of your food and beverage establishment plays a significant role in pricing. Insurance companies will assess whether you operate a restaurant, café, bar, bakery, or any other type of food service business, as each has its unique risks.

  2. Revenue and Sales Volume: Insurance pricing often correlates with your business’s revenue and sales volume. Higher revenue or sales volume can indicate increased exposure to liability and potential losses, which may result in higher premiums.

  3. Location: The geographical location of your business affects insurance pricing. Factors such as local crime rates, proximity to fire stations, and the region’s susceptibility to natural disasters can impact the level of risk and therefore, the insurance premium.

  4. Menu and Operations: The type of cuisine, food preparation methods, and cooking equipment used in your establishment are factors considered in pricing. Certain cuisines or cooking techniques may pose higher risks of fire or liability claims, impacting the premium.

  5. Safety Measures: Insurance companies will assess the safety measures in place at your establishment, such as fire suppression systems, security measures, employee training, and compliance with health and safety regulations. Robust safety protocols can help mitigate risk and potentially lead to lower premiums.

  6. Claims History: Insurance companies review your claims history to assess the likelihood of future claims. A history of frequent or high-value claims can result in higher premiums, as it indicates a higher level of risk associated with insuring your business.

It’s important to note that each insurance company has its own pricing models and underwriting criteria. Working with an experienced insurance agent who specializes in the food and beverage industry can help you navigate the pricing process and find the most competitive rates for your specific business.

When considering insurance coverages for your food and/or beverage business, it’s important to protect against the specific risks associated with your industry. While the ideal coverages may vary depending on your business’s size, type, and operations, here are some essential coverages to consider:

  1. General Liability Insurance: This coverage protects your business against claims of bodily injury, property damage, or advertising injury. It can help cover legal expenses, medical costs, and potential settlements or judgments resulting from accidents or injuries that occur on your premises.

  2. Property Insurance: Property insurance is vital to protect your physical assets, including your building, equipment, inventory, and furniture, against perils such as fire, theft, vandalism, or natural disasters. It can provide coverage for repair or replacement costs, helping you recover quickly in case of an unexpected event.

  3. Product Liability Insurance: If your food or beverage products cause harm or illness to consumers, product liability insurance can protect your business. It covers legal expenses, settlements, or judgments arising from claims related to product defects or contamination that cause bodily injury or property damage.

  4. Business Interruption Insurance: In the event of a covered loss that temporarily suspends your business operations, business interruption insurance can provide financial protection. It helps cover ongoing expenses, such as rent, utilities, and payroll, as well as lost profits during the interruption period.

  5. Liquor Liability Insurance: If your business serves alcohol, liquor liability insurance is crucial. It protects against claims resulting from alcohol-related accidents, injuries, or property damage caused by an intoxicated customer. This coverage can help cover legal costs and potential settlements or judgments.

  6. Workers’ Compensation Insurance: If you have employees, workers’ compensation insurance is typically required by law. It provides benefits to employees who suffer work-related injuries or illnesses, covering medical expenses, lost wages, and rehabilitation costs. It also helps protect your business from potential lawsuits related to workplace injuries.

  7. Cyber Liability Insurance: In the digital age, cyber threats are a significant concern for businesses, including those in the food and beverage industry. Cyber liability insurance can provide coverage for data breaches, cyberattacks, and associated costs such as forensic investigations, customer notification, and potential legal liabilities.

Remember, these are general coverages to consider, and the specific needs of your business may warrant additional or specialized coverages. Working with an experienced insurance professional who understands the food and beverage industry can help you identify the most suitable coverages for your business’s unique risks and requirements.

The amount of coverage your food and/or beverage business needs depends on various factors, including the size of your business, the type of operations you engage in, and the specific risks associated with your industry. While there is no one-size-fits-all answer, here are some considerations to help you determine the appropriate coverage limits:

  1. Assess Your Business’s Assets: Start by evaluating the value of your physical assets, such as your building, equipment, inventory, and furnishings. Ensure that your property insurance coverage is sufficient to cover the replacement or repair costs in the event of a covered loss.

  2. Evaluate Potential Liabilities: Consider the potential liability risks your business may face. This includes risks related to customer injuries, foodborne illnesses, product defects, or property damage caused by your operations. Evaluate the level of risk exposure and ensure your liability coverage limits are adequate to protect your business.

  3. Compliance with Legal Requirements: Some coverage types, such as workers’ compensation insurance, may have minimum coverage requirements mandated by law. Ensure you meet these legal obligations to avoid penalties or potential legal issues.

  4. Contractual Obligations: If you have contracts with clients, vendors, or landlords, review the insurance requirements specified in those agreements. Ensure your coverage aligns with the contractual obligations to maintain compliance and protect your business’s interests.

  5. Business Interruption Considerations: Assess the potential financial impact of a significant business interruption due to covered events, such as fire, natural disasters, or other unforeseen circumstances. Evaluate the ongoing expenses, such as payroll and rent, that would need to be covered during the downtime. Consider business interruption coverage that aligns with your specific needs.

  6. Risk Appetite and Financial Resources: Consider your risk tolerance and financial resources. Higher coverage limits provide greater protection but may come with higher premiums. Find a balance that aligns with your risk tolerance and financial capabilities.

It’s recommended to work closely with an experienced insurance professional who specializes in the food and beverage industry. They can assess your specific risks, guide you through the coverage selection process, and help determine the appropriate coverage limits that adequately protect your business.

When purchasing insurance for your food and/or beverage business, it’s essential to be aware of potential exclusions that may limit or exclude coverage for certain events or circumstances. While specific exclusions can vary depending on the insurance policy and provider, here are some common exclusions to watch for:

  1. Intentional Acts: Insurance policies typically exclude coverage for intentional acts or intentional damage caused by you or your employees. This means that if harm or damage is caused intentionally, it may not be covered under your policy.

  2. Pollution and Contamination: Many insurance policies have exclusions for pollution-related incidents, such as contamination of food or beverages. If your business deals with handling or storing hazardous substances, ensure that your policy covers these risks adequately.

  3. Employee Dishonesty: Some policies may have exclusions for losses resulting from employee dishonesty, such as theft or fraud committed by your employees. Consider adding an employee dishonesty or crime coverage endorsement to protect against these risks.

  4. War and Terrorism: Insurance policies typically exclude coverage for damages or losses caused by war, acts of terrorism, or acts of political violence. If your business operates in an area with a higher risk of these events, consider obtaining specialized coverage to address these risks.

  5. Cyber Attacks: Standard insurance policies may have limited or no coverage for cyber-related incidents, such as data breaches or cyberattacks. Given the increasing prevalence of cyber threats, consider adding cyber liability insurance to protect against these risks.

  6. Wear and Tear or Maintenance: Insurance policies generally exclude coverage for damage resulting from wear and tear, lack of maintenance, or gradual deterioration of property or equipment. It’s essential to have proper maintenance procedures in place to minimize the likelihood of such exclusions impacting your coverage.

  7. Specific Perils or Events: Some policies may have exclusions for specific perils or events, such as earthquakes, floods, or acts of God. If your business operates in an area prone to these risks, consider obtaining additional coverage or endorsements to address these perils.

It’s crucial to carefully review your insurance policy and discuss any exclusions with your insurance provider. An experienced insurance agent who specializes in the food and beverage industry can help you understand the exclusions, assess the potential impact on your coverage, and explore options for addressing any coverage gaps through additional policies or endorsements.


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