Concession Stand And Food Vendor Insurance

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Concession Stand And Food Vendor Insurance Policy Information

Concession Stand And Food Vendor Insurance

Concession Stand And Food Vendor Insurance. Concession stands are often facilities located within a larger operation, such as an arena department store, fair, office building, park, or stadium, or may be a free-standing operation. They serve a limited menu consisting of sandwiches, salads, snacks, hot dogs, pretzels, popcorn, candy, ice cream, specialty food items, soft drinks and/or beer. Some items will be pre-packaged while others are prepared to customer specifications.

Condiments may be available. Limited seating may be provided for on-premises consumption, but generally, customers purchase items and consume them elsewhere. Some concession stands & food vendors may operate on a seasonal basis.

Whether it's a sporting event, a fair, a concert, or a festival, a concession stand is one of the most welcoming sites. Visitors rush your stand to fill up on sweet treats, savory morsels, and refreshing beverages, which helps to make the events that they are attending even more enjoyable. It doesn't matter if you serve ooey gooey nachos, hamburgers and hot dogs with all the fixings, soft pretzels, sodas, or frozen treats, like ice cream and frozen yogurt, you've put a lot of hard work into establishing your concession stand business.

It's a horror to think of what could happen to your concessionaire business in the event that something unexpected happened, which is exactly why it's so important that you protect yourself with the right type of concession stand and food vendor insurance coverage.

Concession stand and food vendor insurance protects concessionaires from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.

How Much Does Concession Stand And Food Vendor Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small concessionaires and food vendors ranges from $27 to $59 per month based on location, number of employees, sales and experience.

Why Is Insurance Important For Concession Stands?

As a concession stand owner or food vendor, your business involves serving food and working with the public; two things that are associated with multiple risks. Despite your best efforts to make sure that the food you are offering is properly prepared and safe, and even though you are committed to delivering exemplary service, it's almost impossible to avoid certain risks.,/p>

For example, flames from a grill could burn an employee while he's flipping burgers, a customer could have an allergic reaction to an ingredient in the food you serve, or your refrigeration could equipment could break down, causing all of your food to rot.

Having the proper concession stand and food vendor insurance in place is vital. It protects concessionaires from multiple risks; and it protects you from the costs that are associated with these risks. With the right coverage, you can avoid paying medical bills, property damage, legal fees, and other exorbitant costs should a serious incident arise.

What Type Of Insurance Should Food Vendors Have?

Every concession stand is different, and as such, the type of concession stand and food vendor insurance coverage that you'll need depends on the unique aspects of your business. Where you operate your stand, the type of food you serve, and the number of people you employ are just some of the factors that will indicate what type of policies you need and how much coverage you should have. However, there are key coverages that concessionaires should carry, including:

  • Commercial General Liability - This type of insurance protects you from any third-party injury or property damage claims that are made against your business. For instance, if someone claims the developed food poisoning after eating the food you served, general liability insurance would help to cover your legal fees if the individual decided to sue you.
  • Workers Compensation - This type of coverage offers benefits to your employees if they sustain a work-related injury or illness. If a flame from a grill burned a staff member, workers' comp would cover the associated medical bills, as well as a portion of lost wages while the employee recovers from the injury.
  • Liquor Liability - If you serve alcoholic beverages, you'll also need to carry a liquor liability insurance policy. If an employee served a minor an alcoholic beverage, you would be held liable, but your liquor liability insurance would cover any legal costs that may arise should such an incident occur.
  • Business Interruption - If your concession stand is forced to shut down because of a fire, a hurricane, or some other type of disaster, business interruption insurance would replace the income that you lost while your concession stand was unable to operate.
  • Business Auto - If you use any vehicles for work-related purposed, you'll also need to carry a commercial auto insurance policy. This type of coverage provides protection against accidents that are you or your employees caused while they were performing work-related duties. For instance, if you were delivering food to a client and side-swiped a vehicle, your policy would cover the cost of the damages to the other car.

These are just some of the insurance options that concessionaires should have in place.

Food Service Contractor's Risks & Exposures

Premises liability exposure is light because of the very limited area available to the customer. Temperatures of hot beverages must be limited to reduce injuries due to scalding. Spills in seating areas and in the traffic area immediately surrounding the stand should be monitored to prevent slips and falls.

Parking lots and sidewalks need to be in good repair, with snow and ice removed if operations are free-standing and open year-round, and generally level and free of exposure to slips and falls. Outdoor security and lighting must be consistent with the area. If the concession stand operates in another facility, there should be a contract with that facility to prevent disputes.

Products liability exposure is high due to the possibility of food poisoning, contamination and allergic reactions as items are generally carried away from the concession stand for consumption. Monitoring the quality of food received, posting lists of ingredients, and maintaining proper storage temperature can reduce this exposure. Quality control requires limits on the length of time food may stay in holding area before being destroyed. The stock should be regularly rotated so that older products are used first. Out of date stock must be removed on a regular basis and discarded.

Workers compensation exposures come from slips, falls, cuts, burns, puncture wounds, foreign objects in the eye, lifting that can cause back injury, hernias, sprains and strains, and interactions with customers. Food handling can result in passing bacteria or viruses, resulting in illness.

Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces like coolers. There should be adequate controls in place to maintain, check, and prevent such injury. Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals.

In any retail business, hold-ups are possible, so employees should be trained to respond in a prescribed manner. The employees tend to be minimum wage and turnover may be high, particularly if the concession stand operates on a seasonal basis. Company incentives to encourage long-term employment are positive signs of management control. Businesses with multiple stands may use independent contractors rather than employees.

Property exposures are from electrical wiring, refrigeration units, cooking equipment, and heating and air conditioning systems. Wiring must be up to code, well maintained, and adequate to support refrigeration units. Ammonia used in refrigeration units can explode. A system designed to detect leaks should be in place. Refrigeration equipment must be inspected and maintained on an ongoing basis.

While cooking may be limited to microwave and toaster ovens, there may be grills and deep fat fryers which must be protected by automatic fire extinguishing protection, hoods, and filters over all cooking surfaces. There should be fuel shut-offs and adequate hand-held fire extinguishers. The area must be kept clean and grease free to prevent fire spread. Filters should be changed frequently.

Ice cream and other food items are highly susceptible to damage, and all stock can be condemned as unfit for consumption or sale if there is a fire because of resultant smoke, water, and heat damage. As operations may be seasonal, a loss at the beginning of the season could result in a total loss of income.

Equipment breakdown exposure is due to the reliance of the business on properly maintained and electrically powered freezers and cooking devices. A malfunction or breakdown could result in a severe loss, both direct and under time element.

Crime exposures are from employee dishonesty and theft of money and securities. Background checks should be conducted on any employee handling money. As most transactions are handled with cash, money should be removed from the cash drawer at regular intervals and moved to a safe away from the front of the store.

Bank deposits should be made throughout the day to prevent substantial accumulations of cash. Closing time is the most vulnerable time so security procedures should be in place to prevent hold-ups. There must be a separation of duties between employees handling deposits and disbursements and reconciling bank statements.

Inland marine exposures can include computers used to track inventories, mobile concession stands transported to service locations, and valuable papers and records for suppliers.

Commercial auto exposures are generally limited to hired and non-owned liability for employees running errands. If mobile stands are transported, all drivers must have appropriate licenses and acceptable MVRs. Vehicles should be properly maintained, and records retained.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 5812 Eating Places
  • NAICS CODE: 722330 Mobile Food Services, 722310 Food Service Contractors
  • Suggested ISO General Liability Code(s): 16902, 16821, 16822
  • Suggested Workers Compensation Code(s): 9082, 9083

Concession Stand And Food Vendor Insurance

To make sure that your business is properly protected, speak to an professional insurance broker to find out exactly what type of concession stand and food vendor insurance coverage you need and how much coverage you should carry to protect your operations.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Additional Resources For Food Service Insurance

Learn about restaurants, bars, liquor stores commercial insurance coverages. See how small business food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.


Food And Drink Insurance

Bars, taverns, restaurants, cafeterias, and other eating and drinking places have significant insurance needs in three separate areas.

The first is property protection for physical damage to equipment, furnishings, building and supplies due to fire and other perils.

The second is premises liability coverage to protect customers due to slips, trips and falls on the premises, as well as for consumption of food products.

The final need is protection for employees due to frequent cuts, burns and other common employee injuries. Establishments that sell or serve liquor or other alcoholic beverages also need liquor liability coverage.

Slips and falls, along with customer illness due to being served tainted food or drink, are the primary liability exposures. The commercial general liability (CGL) is used to provide coverage for these exposures.

It is important to note that liquor liability coverage is excluded under the CGL form if a risk is in the business of serving alcoholic beverages. Many establishments in this category should therefore consider purchasing a separate liquor liability coverage form.

Restaurant kitchen equipment, inventory and dining room fixtures are common exposures for most eating and drinking places. Many of these establishments do not own the buildings they occupy but have long-term leases and have invested money in various improvements and betterments, including cooking equipment, dining room decorations and permanent fixtures.

There are major differences in the food service business and the very different exposures they present. There are many specific types of restaurants to cater to individual needs and tastes. There a several main commercial insurance classifications for food service.

Concessionaires: The most basic "eat on the run" type of restaurant is not classified as a restaurant at all but is referred to as a concessionaire. Class Code 11168: Concessionaires applies and the accompanying note states that all food and beverages must be sold through hawking or peddling. There can be no location to which customers walk up and purchase the food. This classification includes food sold at sporting events, exhibitions, and parks.

Caterers: Are very similar to restaurants with significant differences. The caterer prepares the meals at its own kitchen or commissary and then transports it to the locations where it will be served. Some final preparation may take place at the final location but the majority generally takes place at the caterer's location. The caterer's employees serve the meals and beverages and oversee the consumption of the food.

Restaurants: The way restaurants are categorized and classified uses the percentage of alcoholic beverage sales as the first criteria, followed by other features or operations.

Common to all of these categories is that entertainment-oriented venues such as nightclubs, cabarets, dance halls, discotheques, and comedy clubs must be separately classified and rated. This means that the sales that those entertainment activities generate must be broken out and rated separately from the sale or food and drink.

Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Spoilage, Equipment Breakdown, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Nonowned Auto & Workers Compensation.

Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.


Concession Stand And Food Vendor Insurance
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