Delicatessen Insurance Policy Information
Delicatessen Insurance. Delicatessens sell cold cuts, pre-cooked meats, prepared salads, soups, and baked goods. There may be a limited amount of fresh meat available for sale along with other grocery-type items. Most delicatessens have limited seating for on-premises consumption, but many customers order take-out items only. Many prepare their own products for sale, such as salads, soups, and sandwiches. Others process fresh meat by smoking or curing.
Sanitary conditions and strict housekeeping standards are crucial. Operations may be plagued by insects and rodents if standards are not set and maintained, and if disposal of food waste is not properly handled.
The owner of a deli has a lot of responsibilities to deal with, and insurance is definitely part of that. Owning a delicatessen can be one of the most rewarding things that you do, but you still need to worry about liability; that's why getting the right insurance is important.
There are specific types of commercial insurance that are most important when it comes to owning a delicatessen, and then there are some additional options that you may want to consider as well. If you are thinking about starting a deli, then you are definitely going to want to know what types of insurance you need and what your options are. Let's take a look at the types of delicatessen insurance that you might need to make sure that you and your company are protected.
Delicatessen insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now
Below are some answers to commonly asked deli insurance questions:
- What Is Delicatessen Insurance?
- How Much Does Delicatessen Insurance Cost?
- Why Do Delis Need Insurance?
- What Type Of Insurance Do Delicatessens Need?
- What Other Unique Risks To Delis Face?
- What Are Delis Risks & Exposures?
- What Does Delicatessen Insurance Cover & Pay For?
What Is Delicatessen Insurance?
Delicatessen insurance is a type of insurance specifically designed for delicatessen businesses, such as delis, sandwich shops, and other food retailers that specialize in prepared foods. This type of insurance typically covers risks such as property damage, liability for food-borne illnesses, and loss of income due to business interruption.
It may also include coverage for equipment breakdown, employee dishonesty, and damage to products in transit. The specific coverage options and limits may vary depending on the insurance provider and the individual needs of the business.
How Much Does Delicatessen Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small delis ranges from $37 to $59 per month based on location, seating capacity, food or alcohol served, payroll, sales and experience.
Why Do Delis Need Insurance?
Delis, like any other business, need insurance for a variety of reasons. First and foremost, insurance protects the delicatessen and its owners from financial losses due to unexpected events. This could include things like property damage caused by a natural disaster, theft, or vandalism.
Delicatessen insurance can also provide coverage for personal injury or accidents that occur on the premises, such as a customer slipping and falling.
In addition to protecting the delicatessen itself, insurance can also protect the owners and employees from legal liability. If a customer gets sick from food served at the delicatessen, they could potentially sue the business for damages. Insurance can help cover the costs associated with defending against such a lawsuit and any potential settlement or judgment.
Insurance can also provide peace of mind for the deli owners and employees. Knowing that their business and livelihood are protected can give them the confidence to focus on running their business and serving their customers.
Overall, insurance is an important investment for delicatessens to protect against financial losses and legal liability. It helps ensure the long-term viability and success of the business.
What Type Of Insurance Do Delicatessens Need?
Let's take a look at some of the most important types of delicatessen insurance. In this type of business, there are three that are the most important. Let's look at each of them in detail:
General Liability Insurance
Commercial general liability is a type of business insurance that covers you any time that you are liable for something that happens to customers. For example, if you have people coming in and out of your delicatessen right after mopping the floor, there is at least some chance of slipping and falling.
There are also sharp knives, broken glass and plates, heavy equipment like salad bar tables that customers interact with regularly and lots of other hazards inside of your shop. You want to protect yourself and your business is much as possible, and that's exactly where a general liability insurance policy comes in.
Business Owner's Policy
You may also want to go with a business owners policy. This is the second of the three important delicatessen insurance policies. A business owner's policy actually bundles the general liability insurance that we discussed earlier with property insurance. Property insurance is important for any business that has actual premises where customers come.
Included in a business owners policy is coverage would cover all your business property inside your your deli, like your booths, tables, chairs, and your kitchen equipment. It can also include coverage for your inventory, including food and beverages.
For a delicatessen, property insurance is very important. If something happens to your building, such as a natural disaster, fire or flood, your business is going to stop earning money because you are not going to be able to serve customers. But property insurance protects you against this and allows you to rebuild quickly seeking get back to earning money.
The BOP bundles property and business income insurance with the general liability insurance discussed earlier to give a comprehensive delicatessen insurance package.
Workers Compensation Insurance
If you have employees, then you are going to need Workers compensation. Worker's comp is required by law in most states. It is a type of insurance that provides medical benefits to employees that are injured on the job. In the case of a deli, employees are even more susceptible to injuries than customers.
Employees must walk on wet floors, handle potentially dangerous items like hot grills and refrigeration units with sharp corners, extremely sharp knives or other heavy cooking equipment, or they may simply be injured because of carrying heavy trays or stacking boxes on delivery day. An example is an employee could suffer a lower back injury if they are not properly trained in lifting techniques and pull their back unloading heavy boxes of frozen foods.
Workers compensation provides them with money for medical bills if they are injured on the job as well as money to replace lost income during the time that they are recovering from their work injury.
There are some additional business insurance types that you want to be aware of when it comes to owning a delicatessen. Whenever you have a food or drink business where you have to store items on site that may spoil, you might want to consider spoilage insurance. If a freezer unit goes out or some other incident happens that causes lots of inventory to spoil, it can be useful to have spoilage insurance to keep your business going.
You may also want to consider employer practices liability in case someone brings a discrimination suit or other employer practices suit, you may want to protect yourself against damage from utilities like water lines or sewage, or you may simply want to add on an umbrella coverage policy that gives you more protection above and beyond than the other types of liability insurance that you already have.
What Other Unique Risks To Delis Face?
There are also more complex risks for certain type of ethnic delis to consider like Jewish Delis keeping up costly kosher standards - such as keeping kosher by using biblical precepts to ritually slaughter animals, not serving pork or shellfish, and carefully keeping a 2 sets of kitchenware to prepare dairy and meat dishes separately.
Another example is Halal standards. According to Islamic guidelines, halal food is safe and not harmfully prepared; it does not contain non-halal and najs (unclean) ingredients; and it is processed and manufactured using equipment that is not contaminated with things that are najs.
What Are Delis Risks & Exposures
Premises liability exposure is moderate due to public access. If there is seating, customers will move around the delicatessen with beverages and food items, generating spills that can result in slips and falls. Spills should be cleaned up promptly. Temperatures of hot beverages must be limited to reduce injuries due to scalding. Lists of ingredients should be posted to prevent allergic reactions. Customers may become ill from ingesting contaminated food or beverages.
Cleanliness standards must be monitored. Floor covering must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must exist and be well marked, with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and falls. Outdoor security and lighting must be consistent with the area.
Products liability exposure results from food poisoning, contamination and allergic reactions from food and beverages carried off premises for consumption. Monitoring the quality of food received, posting lists of ingredients, and maintaining proper storage temperature can reduce this exposure. There should be controls in place to prevent contamination from chemicals such as insecticides and pesticides used for pest control. The stock should be regularly rotated so older, but not out of date, stock is sold first, and out of date stock is removed and discarded.
Workers compensation exposures come from lifting that can cause back injury, hernias, sprains, or strains, slips, and falls, burns, cuts, puncture wounds, foreign objects in the eye, and interactions with customers. Food handling can result in passing bacteria or viruses, resulting in illness. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting.
Repetitive stress injuries such as carpal tunnel syndrome plague meat workers, as do cuts and potential injury from saws, grinders, and other meat processing equipment. Guards and/or protection devices should be in place. Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers. Controls must be 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. Company incentives to encourage long-term employment are positive signs of management control.
Property exposure is from electrical wiring, cooking equipment, refrigeration units, and heating and air conditioning equipment. All wiring should be current, up to code, and well maintained. The refrigeration units can put tremendous strain on any electrical system. Ammonia used in refrigeration units can explode. A system designed to detect leaks should be in place. Cooking may be limited to ovens.
All grills and deep fat fryers must have automatic fire extinguishing protection, hoods, and filters. There should be fuel shut-offs and adequate hand-held fire extinguishers. The kitchen must be kept clean and grease free to prevent the spread of fire. Filters should be changed regularly. Spoilage exposure is very high. Power outages of even moderate duration can render fresh and frozen goods to be condemned as unfit for consumption or sale. Alarms and warning devices should be in place to alert the operation to loss of power.
Backup power, such as a generator, should be available. Business income with extended time period coverage should be purchased. While clientele tends to be fairly loyal, they may switch after a major loss due to the lag time between the re-opening and the return to full operations.
Equipment breakdown exposures can be high as operations are dependent on refrigeration and cooking equipment which can break down or malfunction. A lengthy breakdown could result in a severe loss, both direct and under time element.
Crime exposures are from employee dishonesty and money and securities. Criminal background checks should be conducted on any employee handling money. Money should be regularly stripped from the cash drawer and moved to a safe away from the door. Irregular drops should be made to the bank during the day to prevent substantial accumulations of cash. Closing time is the most vulnerable time so security procedures should be in place to prevent holdups. There must be a separation of duties between employees handling deposits and disbursements and reconciling bank statements.
Inland marine exposures include accounts receivables if customers are billed, computers for tracking inventories, and valuable papers and records for employee and supplier records.
Business auto exposure may be limited to hired or non-owned liability exposures from employees using their vehicles to run errands. If delivery services are provided, only company vehicles should be used. Drivers must have appropriate licenses and acceptable MVRs. Vehicles should be properly maintained, and records retained.
What Does Delicatessens Insurance Cover & Pay For?
Delicatessens, like any other business, can face lawsuits for a variety of reasons. Here are some examples of common reasons delicatessens may be sued:
- Foodborne Illness: A customer becomes ill after consuming food from the delicatessen due to contamination, leading to a lawsuit. A delicatessen can purchase a general liability insurance policy that covers bodily injury claims. This policy would cover the legal costs of defending against the lawsuit, as well as any settlements or judgments up to the policy limits.
- Slip and Fall Accidents: A customer slips and falls in the delicatessen, leading to injuries and a lawsuit. A deli can purchase a general liability insurance policy that covers premises liability claims. This policy would cover the legal costs of defending against the lawsuit, as well as any settlements or judgments up to the policy limits.
- Product Liability: A product sold by the delicatessen causes harm to a customer, leading to a lawsuit. A deli can purchase a product liability insurance policy that covers claims arising from the products they sell. This policy would cover the legal costs of defending against the lawsuit, as well as any settlements or judgments up to the policy limits.
- Employee Injuries: An employee is injured while working at the deli and files a workers' compensation claim or lawsuit against the business. A delicatessen can purchase a workers' compensation insurance policy that covers employee injuries. This policy would cover the costs of medical treatment and lost wages for the injured employee, as well as any legal costs associated with defending against a workers' compensation claim.
- Discrimination or Harassment: A customer or employee alleges discrimination or harassment against the delicatessen, leading to a lawsuit. A deli can purchase an employment practices liability insurance policy that covers claims of discrimination or harassment. This policy would cover the legal costs of defending against the lawsuit, as well as any settlements or judgments up to the policy limits.
In summary, insurance can provide valuable protection for delicatessens facing lawsuits. By having the right insurance policies in place, delicatessens can focus on running their business while their insurance helps cover the costs of defending against legal claims.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5812 Eating Places, 5411 Grocery Stores
- NAICS CODE: 445210 Meat Markets, 722513 Limited Service Restaurant
- Suggested Workers Compensation Code(s): 8006 Grocery, Tea or Coffee Dealer - Retail
Description for 5812: Eating Places
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
Description for 5411: Grocery Stores
Division G: Retail Trade | Major Group 54: Food Stores | Industry Group 541: Grocery Stores
5411 Grocery Stores: Stores, commonly known as supermarkets, food stores, and grocery stores, primarily engaged in the retail sale of all sorts of canned foods and dry goods, such as tea, coffee, spices, sugar, and flour; fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry.
- Convenience food stores-retail
- Food markets-retail
- Frozen food and freezer plans, except meat-retail
- Grocery stores, with or without fresh meat-retail
- Supermarkets, grocery-retail
Delicatessen Insurance - The Bottom Line
To learn more about the specific type of deli insurance you need and how much coverage you should invest in, speak with a reputable broker that specializes in commercial insurance.
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.