Deli Business Insurance
Getting insurance for your deli is essential.
In order to shelter delis from the numerous risks they face in their operations, it is crucial that they obtain insurance coverage. By securing insurance, delis can protect themselves from property damage and also mitigate their liability for bodily injury or loss of income.
For example, a customer may slip and fall injuring themselves or your deli van may be involved in a collision or thieves may break in and steal goods. Luckily, there is insurance to protect against all such risks.
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 Deli Business
General liability insurance is — generally speaking — one of the most important insurance policies for delis.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
General liability will cover many risks. However, it may not cover all the risks your business is exposed to. These risks may be covered by specialized policies including those that provide:
- Commercial property coverage: This policy will offer protection to a deli's physical assets, such as its inventory, from risks posed by fire, as well as losses due to burglary and theft.
- Commercial auto insurance: May be of two kinds: collision policies and comprehensive. The former covers physical damage to individuals, including medical expenses and damage to property. The latter covers the risks already covered in a collision policy, but also vehicle damage not caused by collision.
- Business income coverage: Business interruption insurance will help a deli owner recoup losses incurred from having had to close the business because of a natural disaster. Less remarkably, this kind of insurance can really save the day if power fails due to a heavy snowstorm, for example.
When purchasing insurance to cover your business, you will generally be able to choose between the following two types of insurers:
- Traditional brick and mortar insurers: Long-established providers may not have invested in technology to improve their customer experience, which remains no different to how it was decades ago. This can result in higher premiums.
- Online insurers: However, insurtechs like Cover Genius and Next offer a more modern and personalized customer experience compared to those conservative providers. Reduced overhead often results in much lower premiums.
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Cost of General Liability Insurance
The average deli 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 deli business 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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Discover the best coverage at the lowest rate in our cheapest business insurance review.
Common Situations That General Liability Insurance May Cover for a Deli Business
Example 1: When an employee sneaks a friend behind the counter to use the deli slicer, the friend cuts her hand and decides to sue. General liability insurance would pay for your legal fees and any damages awarded in a settlement.
Example 2: An employee accidentally spills hot coffee on a customer, who demands repayment for treatment of the resulting burns. General liability insurance would cover the customer’s medical bills.
Example 3: An employee writes a blog post about why your deli is better than the competition, leading a rival business to file a defamation lawsuit against you. General liability insurance would cover your legal fees and any damages awarded in a settlement.
Other Types of Coverage Deli 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 of the most common types of coverage:
Commercial Property Insurance
You’ve made major investments in your deli equipment and inventory. If you own the building in which you operate, you’re responsible for all business-related property housed there in the event of a fire or other natural disaster. Commercial property insurance would cover the cost of replacing your equipment and inventory after an accident so you can recover quickly.
Product Liability Insurance
When you sell products to the public, there’s always a chance a customer may file a lawsuit if they believe one of your products harmed them. Product liability insurance would protect your business by covering your legal fees and any damages awarded in the event of a lawsuit.
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 benefits stemming from a work-related accident.
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 deli 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.
Deli 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.
It is essential to buy business insurance before opening a business. Failing to obtain coverage from the outset could jeopardize your enterprise not only due to unforeseen hazards but also legal violations.
Certain forms of insurance, such as workers' compensation and commercial auto insurance, are mandatory by law. Furthermore, your business may need insurance coverage to safeguard against specific risks, such as property damage and personal injury to customers.
Not necessarily. Certain exceptions may be written directly into your deli business 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.