Food Kiosk Business Insurance

Getting insurance for your food kiosk is essential.

Food kiosks need to be protected against claims arising from things like foodborne illnesses, product liability, and health and safety violations.

For example, a customer falls sick due to unsanitary conditions at one of your kiosks, or an employee injures themselves while preparing food and requires time off.

We’ll help you find the most personalized and affordable coverage for your unique business.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Food Kiosk Business

General liability insurance is — generally speaking — one of the most important insurance policies for food kiosk businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

It is common for food kiosks to bolster the protection of general liability with other insurance policies, such as:

  • Product liability insurance for the food products you sell
  • Workers’ compensation insurance for your employees (if you hire any)
  • Data breach insurance for any cyberattacks your business incurs
  • Commercial umbrella insurance to extend the costs of your other policies

Choosing the optimal insurance provider for your food kiosk business may appear daunting, but is actually quite simple when broken down. The first step is realizing which type of insurer is best for you:

  • Traditional brick-and-mortar insurers
  • Online insurers

While traditional insurers such as Nationwide are far more renowned than their online counterparts, this alternative option is actually our recommendation to most businesses. The reason for this is that their digital business structure is far cheaper to run, meaning they offer insurance of comparable quality for low prices.

Find the Right Policy at the Best Rate

We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.

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Cost of General Liability Insurance

On average, food kiosk businesses in America spend between $500 - $1,200 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a food kiosk business to other professional industries using the graph below:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Finding the most affordable premium starts with getting accurate quotes from highly rated providers.

Common Situations That General Liability Insurance May Cover for a Food Kiosk Business

Example 1: While browsing your kiosk for a snack, a customer trips over some inventory boxes, hits her head in the resulting fall, and demands your business pay for her medical treatment. General liability insurance would cover her medical bills and any related damages in the event of a lawsuit.

Example 2: While several customers wait in line at your kiosk, an employee accidentally rolls a cart full of heavy boxes over a customer’s backpack and smashes the expensive computer equipment within. General liability insurance would pay to replace the customer’s damaged property.

Example 3: The owner of a competing food kiosk files a lawsuit against your business, claiming your new logo redesign infringes on his copyrighted material. While you don’t see any similarities, you know you need a good legal defense to protect your business. General liability insurance would cover your legal fees and any settlement payouts.

Check out our review of the Best Small Business Insurance Companies.

Other Types of Coverage Food Kiosk Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all food kiosk businesses should obtain:

Product Liability Insurance

While you strive to provide great products for your customers, there’s always a chance someone might claim one of your products caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.

Data Breach Insurance

If you offer a loyalty program for your returning customers, data breach insurance can help safeguard your business in the event a cyber-attack compromises their sensitive personal information. This essential coverage provides an extra layer of protection not usually included in a general liability insurance policy.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your food kiosk business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Business Insurance Is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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Food Kiosk Business Insurance FAQ

Can I buy business insurance online for my food kiosk business?

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

What is included in a business owner’s policy?

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

What is the difference between business insurance and general liability insurance?

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a food kiosk business?

Yes. Proactive business insurance is the key to effectively protecting your food kiosk business from the liabilities it can expect to face.

While not always a legal requirement, it is increasingly common that businesses are obligated by law to possess certain insurance policies (e.g., workers’ compensation and commercial auto).

Will insurance protect my food kiosk business from everything?

Not necessarily. Certain exceptions may be written directly into your food kiosk business insurance policy, and some perils may be entirely uninsurable.

Do I need business insurance if I already have an LLC?

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.

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