Show and business insurance is a touchy subject with many ins and outs. This month's article gives you tips to make the right decisions when it comes to insurance, based on the experience of experts!
Have you listed any items in the FNO Marketplace yet? Now you can sell your packaged food products online through FNO! It's free to list your items, complete fee information is listed here.
FNO Newsletter Editor
Don't Rely on Your Homeowners Insurance
by The FLIP writing team at fliprogram.com
There is a common misconception that homeowners insurance policies will cover your business personal
property while in your home or garage. The reality is that not only does homeowners insurance exclude
business personal property, but any claims derived from business pursuits could jeopardize other
important coverage provided by your homeowners insurance.
Whether you operate as a food vendor, food truck, or hot dog cart it is important to purchase a separate
property and liability insurance policy to cover your business operations. Without the right insurance, a
burn, trip and fall, food allergy, or food poisoning could put you and your personal assets at risk.
There are specific policies designed for food vendors on the market and we understand it can be
confusing to compare the difference. We hope that some of these tips provided will help you with your
next insurance purchase:
1. General Liability and Product Liability. You will want to verify that the policy you are
purchasing includes both General Liability and Product Liability insurance. General Liability will
cover claims such as a slip & fall, whereas Product Liability responds to claims caused by your
food/product. By purchasing a policy with both coverages you will have the broadest protection
for your food business.
2. Blanket Additional Insured. Most farmers markets and other venues require you to name
them as an Additional Insured on your policy. This protects the venue from any lawsuits against
them due to your negligence. If you don't have a blanket Additional Insured endorsement on
your policy, the insurance company may charge you for each one added. What seemed to
be an inexpensive policy initially can become very expensive due to the Additional Insured
requirement of the venues.
3. Unacceptable Food/Products. Many insurance companies exclude specific foods and/or
products, so it is important to confirm that your product is covered under the food liability
policy you are purchasing. If your food/product is on the excluded list, then you will be paying
4. Business Personal Property/Inland Marine. Business Personal Property covers property at a
specific location (office or home), whereas Inland Marine will cover your property anywhere
within the United States. Since your food business requires you to be mobile, it is better for you
to purchase Inland Marine coverage to properly cover your property. With many policies this is
an addition to the General Liability coverage, but some food vendors insurance policies include
up to $5,000 Inland Marine coverage with options to purchase higher limits if needed.
Not all insurance policies are created equal and it is important to understand what you are purchasing to
protect your business and personal assets.
Article provided by:
FLIP's writer team.
Food Liability Insurance Program (FLIP) is designed by Veracity Insurance Solutions, LLC and offers general &
product liability insurance for food vendors that can be purchased online at http://www.fliprogram.com
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