Gourmet Popcorn Shop Business Insurance
Getting insurance for your gourmet popcorn shop is essential.
Gourmet popcorn shops need to be protected against things like claims of product liability, breach of contract, and employment-related disputes.
For example, a customer falls ill after consuming contaminated popcorn, or an employee claims that they were injured on the job due to unsafe practices.
We’ll help you find the most personalized and affordable coverage for your unique business.
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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Gourmet Popcorn Shop
General liability insurance is — generally speaking — one of the most important insurance policies for gourmet popcorn shops.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Although general liability is a great foundation, your gourmet popcorn shop will be left vulnerable to a number of risks with only this policy. Some others to consider include:
- Product liability insurance for the items you sell to customers (in this case, popcorn)
- Commercial property insurance for your kitchen equipment, inventory, and physical premises
- Workers’ compensation insurance for your employees should they become injured or fall ill in the line of work
- Commercial auto insurance for any cars or trucks you use for shop-related purposes
There are two main types of insurance providers to keep an eye out for when shopping for your gourmet popcorn shop’s business coverage:
- Traditional brick-and-mortar insurers — this includes longstanding companies like Nationwide or The Hartford
- Online insurers — this includes newer digital-based companies like Tivly or Next
For small businesses, online insurers, which offer a great means of accessing high-quality insurance at a low price tag, may prove to be the better option over traditional insurers.
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Cost of General Liability Insurance
The average gourmet popcorn shop in America spends between $500-$1,200 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a gourmet popcorn shop to other professional industries using the graph below.
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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Common Situations That General Liability Insurance May Cover for a Gourmet Popcorn Shop
Example 1: An excited child sneaks behind the counter and shoves her hand into the popcorn machine. She sustains burns, and her parents demand that you pay for her medical care. Your general liability insurance will likely cover the child’s treatment costs.
Example 2: One of your customers is entering the restroom when she slips and falls on some water that has recently been spilled on the floor. She hits her head and breaks her wrist. She files a lawsuit against your business, demanding damages. Your general liability insurance will pay for your legal defense in such a situation, including the cost of a settlement if you settle out of court.
Example 3: An employee is carrying a stack of boxes high enough that she cannot see around them. She bumps into one of your customers, knocking her to the ground and causing her injury, including a broken wrist. The customer demands that you pay for her medical treatment. You can likely get financial help from your insurer to pay the medical bills.
Other Types of Coverage Gourmet Popcorn Shops 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 of the most common types of coverage:
Product Liability Insurance
Because you sell products to the public, you are always at risk of being sued over those products. No matter how careful you are to sell safe products, there is still a possibility that a customer will claim that your popcorn or other products caused him or her injury. If you are sued over a product you sell, your product liability insurance will pay for your legal defense. It will also pay for a settlement if required.
Commercial Property Insurance
You put in a lot of work and capital to get your popcorn business off of the ground. If you were to lose your commercial property in a disaster like a fire, it would be challenging to replace all of it. If your property is destroyed or damaged by a covered event, you can file a claim and get help purchasing new inventory. With the money from your insurance policy, you can get the new equipment and inventory you need to get back to business.
Workers’ Compensation Insurance
Most states require you to carry workers’ compensation insurance if you have employees. Workers’ comp will pay for medical treatment for employees who have sustained work-related injuries. It will also help pay for lost wages if they cannot work while they recover.
Commercial Auto Insurance
If you have an automobile that you use primarily for business, you need commercial auto insurance to protect you, your property, and your employees. If you or an employee are involved in an accident in the vehicle, your policy will pay for repair or replacement costs and medical treatment for injuries. It would also pay for any legal defense costs you might incur if you faced a lawsuit due to the accident.
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 gourmet popcorn shop:
- 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.
Gourmet Popcorn Shop Business Insurance FAQ
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.
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.
"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.
Yes. Obtaining business insurance prior to the opening of your gourmet popcorn shop is one of the key steps to ensuring it is adequately protected from day one.
Since insurance must be purchased proactively in order to be effective, it is necessary to carry it before the launch of your shop as it will face risks from the get-go.
Not necessarily. Certain exceptions may be written directly into your gourmet popcorn shop insurance policy, and some perils may be entirely uninsurable.
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.