Sandwich Shop Insurance Policy Information
Sandwich Shop Insurance. Sandwich shops craft an amazing variety of sandwiches to satisfy almost almost any palate.
Sandwich shops usually cater to the lunch or early evening crowd, serve a lighter menu, and have limited hours of operation. They may be located within a larger operation, such as a department store or office complex.
They serve a limited menu that consists of fast food items or cafeteria-style service. Some offer take-out items, some have counter service only, while others have table seating.
Busy commuters, hungry students, and peckish tourists will all pass through the doors of sandwich shops, allowing them to get a great, quick, and budget-friendly meal in a matter of minutes.
Do you own and run a sandwich shop, or do you dream of opening one? There is no question that these eating places meet an important need, and these venues can become very successful.
Sandwich shops also, on the other hand, face a significant number of threats - each of which has the potential to be financially crippling. That is why it is vital to protect yourself appropriately. What kinds of Sandwich shop insurance might be needed? To find out more, keep reading.
Sandwich shop insurance protects food service businesses 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 sandwich shop insurance questions:
- How Much Does Sandwich Shop Insurance Cost?
- Why Do Sandwich Shops Need Insurance?
- What Type Of Insurance Do Sandwich Shops Need?
How Much Does Sandwich Shop Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for sandwich shops ranges from $27 to $49 per month based on location, revenue, claims history and more.
Why Do Sandwich Shops Need Insurance?
Sandwich shops may need insurance to meet legal requirements, or to satisfy lender criteria. The most important reason to carefully evaluate your insurance needs lies, however, in the fact that carrying the right insurance can easily make the difference between continued success and financial ruin.
Sandwich shops face a variety of risks, after all. They have to contend with the same threats that face any business, but also have to consider some industry-specific hazards.
Your venue could suffer severe damage if it is impacted by an act of nature - such as a wildfire, earthquake, or serious flood - or by a burglary, robbery, or employee theft. Equipment vital to your operation, such as cold storage systems or ovens, could unexpectedly need to be repaired or replaced.
A fire might break out in your sandwich shop. An employee, a customer, or a vendor could sustain an injury on your premises, or your company's activities could inadvertently cause damage to third party property.
The list of perils that could threaten your financial future is almost endless. Even if you go to great lengths to take all possible preventative measures, you can never completely eliminate the risk of disaster. Protected by comprehensive insurance coverage, however, you can do the next best thing - you can make sure that you will not have to face the resulting financial fallout on your own.
If you have the right sandwich shop insurance, your food service will be able to recover even if disaster strikes.
What Type Of Insurance Do Sandwich Shops Need?
Your sandwich shop is like no other, and the same factors that make it unique also influence your insurance needs. That includes the location of your sandwich bar, the jurisdiction in which it is based, the size of your business, your number of employees, and the value of your equipment.
To get individualized insurance advice, you will have to talk to a commercial insurance broker who understands your industry. Among the most important forms of sandwich shop insurance needed are, however:
- Commercial Property: This kind of insurance protects you from financial loss if your property and its contents are damaged due to perils like acts of nature, theft, or vandalism. Note that floods are generally excluded, and that you will need to purchase flood insurance separately.
- General Liability: Businesses can be sued for almost any reason today. Even if the claim ultimately proves to be unfounded, the costs can be exorbitant. Should your sandwich shop face a personal injury or property damage claim, commercial general liability insurance will cover a large portion of your legal fees, as well as helping you pay settlement costs.
- Workers Compensation: Employees can sustain a variety of workplace injuries, from burns to falls. If this happens, workers comp will pay their medical bills. Should the employee require time off to recover, their lost wages will also be reimbursed.
- Equipment Breakdown: This form of sandwich shop insurance will safeguard you from financial losses resulting from the sudden breakdown or malfunction of your important equipment, ranging from HVAC units to ovens.
While these types of insurance will certainly help protect sandwich shops from the perils they are most likely to face, you may require additional kinds of coverage. If you deliver sandwiches, for example, you will need commercial auto insurance, and you may also need crime and cyber security coverage.
Talk to a commercial insurance broker to discover what forms of sandwich shop insurance will best protect your business from all possible threats.
Sandwich Shop's Risks & Exposures
Premises liability exposure may be limited if the shop assumes the premises liability contractually from the host location. If a stand-alone shop, the exposure is moderate due to public access to the premises. If there is seating, customers will move around the delicatessen with beverages and food items, generating spills that can result in slips and falls.
Public areas must be monitored regularly to clean up spills. Temperatures of hot beverages must be limited to reduce injuries due to scalding. Lists of ingredients should be posted to prevent allergic reactions. There should be a food rotation process with a maximum time that food can be kept out.
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 is 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. Quality control requires limits on the length of time food may stay in holding area before being destroyed.
Workers compensation exposures come from slips, falls, cuts, puncture wounds, burns, foreign objects in the eye, heavy and awkward lifting, 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 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. As with all retail businesses, 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 exposures are from electrical wiring, refrigeration units, cooking equipment, and heating and air conditioning systems. All wiring should be current, up to code, and well maintained. Ammonia used in refrigeration units can explode. A system designed to detect leaks should be in place.
Cooking may be limited to microwave, stove surface cooking, and toaster ovens. If there are grills and deep fat fryers, these must have automatic fire extinguishing protection, hoods, and filters. There should be fuel shut-offs and adequate handheld fire extinguishers. The kitchen must be kept clean and grease free to prevent fire spread. 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. Business income with extended time period coverage should be purchased.
While clientele tends to be fairly loyal, they will 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. All equipment must be regularly inspected and maintained as a lengthy breakdown could result in a severe loss, both direct and under time element.
Crime exposures include employee dishonesty and money and securities. Criminal background checks should be conducted on any employee handling money. Sandwich shops must operate on a volume basis to break even, and cash receipts tend to be high. Money should be removed from the cash drawer at regular intervals and deposited at the bank throughout the day to prevent substantial accumulations.
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 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 exposures from employees running errands. If there is limited delivery to locations in the immediate area, drivers must have appropriate licenses and acceptable MVRs. Vehicles should be regularly maintained with documentation retained.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5812 Eating Places
- NAICS CODE: 722513 Limited Service Restaurants
- Suggested ISO General Liability Code(s): 16900, 16901, 16902
- Suggested Workers Compensation Code(s): 9082, 9083
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
Sandwich Shop Insurance - The Bottom Line
To protect your food service business, employees and the people you serve, having the right sandwich shop insurance coverage is necessary. To see your options, including how much coverage you should invest in and the cost - speak to a reputable commercial insurance agent.
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.
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 Insurance||What 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.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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
- Beer Distributor
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
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.