June 27

What Insurance do I need to Sell Food from Home

Last Updated: January 28, 2022

Do you sell food from home? What insurance do I need to sell food from home and what this insurance cover and doesn’t cover.  

If you are a small business owner who is selling perishable goods, it is important that you have the right type of coverage. What may seem like an easy task can turn into a costly mistake if not done correctly. That's why we've put together this blog post for anyone looking to start their own food-related business or has already begun one but isn't sure where to go next with their insurance needs! 

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What Types of Coverage are Available? Here’s the shortlist.  

General Liability:

This type of policy can be extended to cover damages or injuries that may occur on your business premises, while you’re conducting business operations, resulting in bodily injury/ property damage.  

Commercial Auto:

This type of policy is designed to offer protection for vehicles used in carrying out business purposes, such as delivery trucks. This is important because most home-based food businesses will typically need a vehicle to deliver their products.  

Workers' Compensation:

 A law that provides wage replacement benefits (usually up to 66℅ of your average weekly wage) to employees who are injured or killed in the course of employment. it also protects employers from liability claims brought by employees.  

Homeowner/Renter Insurance:

 Home-based food businesses may be covered under the owner's homeowner or renter insurance policy, but it is important to understand their specific terms and limitations before claiming for any potential loss.  

Hired Auto:

This type of policy provides coverage for employees while they're driving business vehicles, but only within certain limits.  

Product Liability:

This policy offers protection for products sold by your business that have caused physical damage or injury to a third party.  

Key Takeaways  

Insurance is a must while selling food from home as it covers you against any damage that may occur while conducting business operations. And it protects you from the legal responsibility to pay for any damage or injury. 

Frequently Asked Questions

Q. Do you need public liability insurance to sell online?

In reality, the items you offer are your greatest risk. In the event that someone becomes ill or harmed as a result of your goods, you'll require public and product liability insurance.

Q. What insurance do you need to serve food?

Public liability insurance.

Product liability insurance.

Business interruption insurance.

Q. Is it necessary for me to get insurance in order to sell my handcrafted goods?

Even if you don't consider yourself a business, you're just as vulnerable to legal action as any large corporation. If you are the subject of a claim, you may be forced to pay some exorbitant fees.

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