International Food Business Insurance
Getting insurance for your international food store is essential.
International food stores need to be protected against claims of things like personal injury, trademark infringement, and breach of contract claims.
For example, a customer could slip and fall in your store, or a supplier could sue you for breach of contract.
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 an International Food
General liability insurance is — generally speaking — one of the most important insurance policies for international food stores.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
To fully protect themselves, international food stores often buy the following supplemental policies to guard against additional risks:
- Commercial property insurance — covers any equipment that your international food store uses, such as freezers, display cases, etc.
- Workers’ compensation insurance — covers your employees' medical bills and related expenses if they get sick or injured while at work
- Commercial auto insurance — covers any company vehicles you have
- Commercial umbrella insurance — covers any costs that extend past your existing policies’ limits
Any business insurance you purchase for your international food store will need to come from an insurance provider. There are two types of providers for you to be aware of:
- Traditional brick-and-mortar insurers — such as Nationwide and Hiscox.
- Online insurers — such as Tivly and Next.
While both have their benefits, small businesses often find that online insurers are cheaper for the same types of coverage because they have lower overhead. You also can typically get insurance faster from an online provider.
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Cost of General Liability Insurance
On average, international food stores 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 an international food 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 an International Food
Example 1: When a customer spills soda and fails to tell anyone, another patron slips on the wet floor and injures herself in the resulting fall. Her injuries require surgery and a long hospital stay. General liability insurance would cover her medical costs and your legal fees in the event of a lawsuit.
Example 2: After a new competitor moves into your neighborhood, you distribute flyers with coupons and information explaining why your store is the best. The competitor files a lawsuit against you, claiming your actions cost him a significant amount of business. General liability insurance would cover your legal defense and any court-awarded damages.
Example 3: In an effort to gain more exposure, you apply to participate in a local farmer’s market. The market requires all vendors to provide evidence of liability insurance, which your general liability policy would fulfill.
Other Types of Coverage International Foods 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
Product liability insurance offers protection to businesses that manufacture, supply, or sell products — including food. If a patron names your business in a lawsuit because they claim they became ill due to a product you sell, product liability insurance would cover your legal fees and any required settlement.
You can typically purchase this coverage as part of a business owners policy (BOP).
Commercial Property Insurance
You made a major investment in the real estate, inventory, and equipment necessary to establish your store. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the inventory and other business materials stored there.
You can typically purchase commercial property insurance as part of a business owners policy (BOP).
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 workplace accident. For extensive injuries resulting in lawsuits, this type of policy also covers a business owner’s legal defense costs.
Most insurers offer workers’ compensation insurance as a standalone policy.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business property you carry in your vehicle. Also consider a policy with limits that exceed the state-mandated minimum coverage.
You can purchase commercial auto insurance as part of a business owners policy (BOP) or as a standalone policy, depending upon the insurer.
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 international food:
- 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.
International Food 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. Since business insurance only covers events that happen after it’s purchased, your international food store will need to buy it before opening its doors if you want coverage for subsequent losses.
In many cases, your international foods store will have to possess specific policies, such as workers’ compensation, in order to operate legally.
Not necessarily. Certain exceptions may be written directly into your international food 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.