Last Updated: February 21, 2024, 3:59 pm by TRUiC Team

Grocery Store Delivery Insurance

Getting insurance for your grocery delivery business is essential.

grocery delivery businesses need to be protected against claims arising from things like vehicle accidents, contractual breaches, and employment disputes. 

For example, one of your business vehicles is involved in an accident with a third party, or a partner store claims that your employees are damaging their customers’ deliveries.

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 Grocery Store Delivery Business

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

Some of the risks general liability insurance covers are:

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

If you are interested in enhancing your grocery delivery business’s coverage, you may want to check out some of the following policies:

  • Workers’ compensation insurance: Important for keeping employees protected who fall ill or get injured on the job (e.g., if a driver is involved in an accident).
  • Commercial auto insurance: An essential policy for protecting your service’s vehicles, which will frequently be used to deliver goods and transport supplies.
  • Commercial property insurance: In the event the physical assets of your delivery business are damaged or lost (e.g., in a fire, theft, or natural disaster), this policy will cover the cost of replacing/repairing them.
  • Commercial umbrella insurance: This extra layer of protection steps in when your service is faced with a large claim that exceeds the coverage of the previous policies.

When searching for an insurance provider to purchase your business’s coverage from, it is important to be aware of the two main types of insurers:

  • Brick-and-mortar insurers — This term typically refers to traditional firms, such as The Hartford and Nationwide.
  • Online insurers — Contrastingly, this term is used to describe more contemporary firms, which are popular with small businesses due to their great value.

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Cost of General Liability Insurance

On average, grocery delivery 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 grocery store  delivery 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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Grocery Store Delivery Business

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Example 1: As one of your delivery drivers carries a heavy box of groceries to a customer’s front door, he drops the box and the impact breaks the customer’s foot. She asks you to pay for her medical treatment. General liability insurance would cover her medical expenses.

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Example 2: While moving a large number of heavy goods from his truck to a customer’s house, one of your drivers loses control of the dolly and it slams into the customer’s luxury sedan. General liability insurance would pay to repair the customer’s damaged property.

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Example 3: A competitor sues your business, claiming your last marketing campaign libeled his company. While you disagree with the claim, you know you need an attorney to defend yourself. General liability insurance would cover your legal defense costs.

Other Types of Coverage Grocery Store Delivery 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:

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your delivery drivers and other 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.

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 materials you carry in your vehicle.

Commercial Property Insurance

You made a major investment in the delivery vehicles and other equipment needed to establish your business. 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, vehicles, and other business materials.

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 grocery store  delivery 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.

Grocery Store Delivery 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. Your grocery delivery business will likely be faced with an array of risks from its first day of operation. The only way to ensure it does not face these risks unprotected is to acquire business insurance in advance.

Similarly, due to the nature of a grocery delivery business, it may be legally required to carry policies such as commercial auto insurance or workers’ compensation insurance.

Not necessarily. Certain exceptions may be written directly into your grocery store  delivery 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.