Concession Stand And Food Vendor Insurance Policy Information
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.
Below are some answers to commonly asked concession stand and food vendor insurance questions:
- What Is Concession Stand And Food Vendor Insurance?
- How Much Does Concession Stand And Food Vendor Insurance Cost?
- Why Do Concession Stands And Food Vendors Need Insurance?
- What Type Of Insurance Do Concession Stands And Food Vendors Need?
- What Does Concession Stand And Food Vendor Insurance Cover & Pay For?
What Is Concession Stand And Food Vendor Insurance?
Concession stand and food vendor insurance is a type of liability insurance that is specifically designed for businesses that sell food or beverages at events, festivals, fairs, and other public venues. This insurance protects concession stands and food vendors from financial losses that may result from claims of food-borne illness, property damage, or personal injury that occur on their premises or as a result of their operations.
The coverage typically includes general liability insurance, product liability insurance, and liquor liability insurance.
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 Do Concession Stands And Food Vendors Need Insurance?
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 Do Concession Stands And Food Vendors Need?
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.
Concessionaires'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.
What Does Concession Stand And Food Vendor Insurance Cover & Pay For?
Concession stands and food vendors may face various risks that could lead to lawsuits. Some of the reasons they may be sued include:
Foodborne illness: If customers get sick from consuming food or beverages sold by a concession stand or food vendor, they may sue for damages related to foodborne illness. This could include medical expenses, lost wages, and pain and suffering.
Insurance protection: General liability insurance can provide coverage for claims related to foodborne illness. For example, if a customer sues a concession stand for food poisoning, the general liability insurance can help pay for legal defense costs and settlements or judgments.
Slip and fall accidents: Accidents such as slips, trips, and falls can occur at concession stands or food vendor locations, especially if there are wet floors, uneven surfaces, or debris. Customers or other visitors who are injured in such accidents may file a lawsuit seeking compensation for their injuries.
Insurance protection: General liability insurance can also provide coverage for slip and fall accidents. It can help cover the costs of legal defense, settlements, or judgments if a concession stand or food vendor is sued for injuries related to slip and fall accidents.
Property damage: Concession stands or food vendors may be held liable for damage to property caused by their operations. For example, if a food vendor's cooking equipment causes a fire that damages a customer's property or nearby buildings, the vendor may be sued for property damage.
Insurance protection: Commercial property insurance can provide coverage for property damage caused by a concession stand or food vendor's operations. It can help pay for repairs or replacement of damaged property, as well as legal defense costs if a lawsuit is filed.
Product liability: If a concession stand or food vendor sells a defective or contaminated food product that causes harm to a customer, the vendor may be liable for damages. This could include injuries caused by foreign objects in food, allergic reactions, or other product-related issues.
Insurance protection: Product liability insurance can provide coverage for claims related to defective or contaminated food products. It can help cover the costs of legal defense, settlements, or judgments if a concession stand or food vendor is sued for product liability.
Employee injuries: If an employee of a concession stand or food vendor is injured while on the job, they may file a workers' compensation claim, seeking compensation for medical expenses, lost wages, and other damages.
Insurance protection: Workers' compensation insurance is typically required for businesses with employees and can provide coverage for employees who are injured on the job. It can help pay for medical expenses, lost wages, and other benefits for injured employees, and protect the concession stand or food vendor from lawsuits related to workplace injuries.
It's important for concession stands and food vendors to have appropriate insurance coverage in place to protect themselves from potential lawsuits and financial liabilities. Insurance can provide financial protection by helping to pay for legal defense costs, settlements, or judgments, which can help mitigate the financial impact of a lawsuit on the business. It's recommended to consult with an insurance professional to determine the appropriate insurance coverage for a concession stand or food vendor based on their specific operations and risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5812 Eating Places
- NAICS CODE: 722330 Mobile Food Services, 722310 Food Service Contractors
- Suggested Workers Compensation Code(s): 9082 Restaurant NOC, 9083 Restaurant: Fast Food
Description for 5812: Eating Placess
Division G: Retail Trade | Major Group 58: Eating And Drinking Places | Industry Group 581: Eating And Drinking Places
5812 Eating Places: Establishments primarily engaged in the retail sale of prepared food and drinks for on-premise or immediate consumption. Caterers and industrial and institutional food service establishments are also included in this industry.
- Automats (eating places)
- Box lunch stands
- Buffets (eating places)
- Carry-out restaurants
- Coffee shops
- Commissary restaurants
- Concession stands, prepared food (e.g., in airports and sports arenas)
- Contract feeding
- Dairy bars
- Diners (eating places)
- Dining rooms
- Dinner theaters
- Drive-in restaurants
- Fast food restaurants
- Food bars
- Food service, institutional
- Frozen custard stands
- Grills (eating places)
- Hamburger stands
- Hot dog (frankfurter) stands
- Ice cream stands
- Industrial feeding
- Lunch bars
- Lunch counters
- Oyster bars
- Pizza parlors
- Refreshment stands
- Restaurants, carry-out
- Restaurants, fast food
- Sandwich bars or shops
- Snack shops
- Soda fountains
- Soft drink stands
- Submarine sandwich shops
- Tea rooms
- Theaters, dinner
Concession Stand And Food Vendor Insurance - The Bottom Line
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.
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.
- Bagel Shop
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
- Specialty Food And Restaurants
The food service industry is a vital part of the economy and plays a crucial role in providing food to individuals and businesses. However, it is also a high-risk industry that is prone to numerous potential liabilities and risks. That's why it's important for food service businesses to have insurance in place to protect themselves against financial losses and legal issues.
One of the main reasons the food service industry needs commercial insurance is to protect against liability claims. When running a food service business, there is a risk of someone getting sick or injured due to food poisoning or food allergies. Insurance can provide coverage for these types of claims, helping to cover the costs of legal fees and damages.
Another reason the food service industry needs insurance is to protect against property damage. This can include damage to the business's physical location, such as from a fire or natural disaster, or damage to equipment, such as kitchen appliances. Commercial insurance can help cover the costs of repairs or replacement, ensuring that the business can continue to operate smoothly.
Additionally, commercial insurance can provide coverage for losses due to unexpected events, such as theft or vandalism. This can be especially important for food service businesses, as food products and equipment can be expensive to replace.
The bar and liquor industry is highly susceptible to accidents and injuries. With the presence of alcohol, there is a higher risk of slip and fall accidents, fights, and other mishaps that could result in serious injuries to employees or patrons. Insurance can provide coverage for these types of incidents and help protect the business from financial liability.
In summary, business insurance is essential for the food service industry due to the numerous risks and liabilities that can arise. It can provide financial protection against potential losses and legal issues, helping businesses to operate safely and securely.
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.