Coverdash earned our top spot for the best small business insurer for food companies for its competitive rates and coverage. However, we recommend comparing quotes from our other top picks, including The Hartford, Simply Business and Nationwide.
Best Food Business Insurance
Updated: July 9, 2025
Advertising & Editorial Disclosure
Key Takeaways
Coverdash is the best business insurance company for food firms because it offers the best balance of competitive rates and coverage.
Coverdash offers competitive rates for food businesses, leading in general liability and BOP coverage costs.
To shop for business insurance for your food business, research industry risks, talk to agents and other food business owners and compare multiple options.
Best Business Insurance for Food Companies
| Coverdash | 94 | 98 | 83 |
| The Hartford | 92 | 92 | 91 |
| Simply Business | 91 | 91 | 83 |
| Nationwide | 88 | 84 | 91 |
| Thimble | 87 | 91 | 81 |
| NEXT Insurance | 87 | 80 | 94 |
| Progressive Commercial | 86 | 87 | 81 |
| Chubb | 86 | 81 | 87 |
| Hiscox | 85 | 85 | 87 |
| biBERK | 85 | 80 | 91 |
*All scores were based on a food business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. Coverdash
pros
Cheapest general liability and BOP
Strong affordability across all policies
Ideal for small food businesses
cons
Limited customer support options
COMPANY HIGHLIGHTS
Coverdash is the most affordable insurer overall for food businesses, offering the lowest prices for both general liability and BOP coverage. Its monthly general liability premium starts at just $34, substantially undercutting larger providers.
Coverdash is especially appealing for small food operations that need quick, digital-first policy setup. Its pricing advantage shows strongest in general liability and BOP coverage, making it appealing for businesses prioritizing these protections. However, its support infrastructure may not match more traditional carriers for businesses that prefer phone-based service.
2. The Hartford
pros
Cheapest professional liability coverage
Strong financial stability (AM Best A+)
Competitive workers' comp and BOP
cons
Online quote process can feel outdated
COMPANY HIGHLIGHTS
The Hartford stands out for food businesses needing professional liability coverage, offering the lowest average rate at $114 per month. It’s a top choice for established companies that prioritize dependable claims handling and tailored commercial policies. Backed by an A+ from AM Best, The Hartford has a long-standing reputation for financial strength and policy expertise. It also offers competitive pricing on workers' comp and BOP insurance. The one downside is a slightly slower online experience compared to newer digital providers.
3. Simply Business
pros
Easy quote comparison across carriers
Competitive BOP and workers' comp rates
Great for new or seasonal businesses
cons
Customer service depends on carrier
COMPANY HIGHLIGHTS
Simply Business is a great fit for food businesses that want to compare insurance options from multiple carriers in one place. It offers competitive pricing for BOP and workers’ comp policies, and its general liability rate of $77 per month is one of the lowest among traditional carriers. The platform is ideal for small restaurants, caterers and food trucks looking to find affordable coverage without committing to a single insurer. However, service quality can vary based on which partner carrier underwrites the policy.
Cheapest Business Insurance for Food Firms
Based on our study of business insurance pricing, Coverdash offers competitive rates for food companies, leading in general liability and BOP coverage. However, These rates apply to food companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Food Companies
With an average monthly rate of $34, Coverdash offers the lowest-cost general liability insurance for food companies. Also consider quotes from the next-cheapest options: Simply Business and Thimble.
| Coverdash | $34 | $406 |
| Simply Business | $77 | $926 |
| Thimble | $82 | $984 |
| The Hartford | $88 | $1,061 |
| Progressive Commercial | $106 | $1,276 |
| Hiscox | $116 | $1,396 |
| Nationwide | $118 | $1,421 |
| Chubb | $131 | $1,571 |
| biBERK | $170 | $2,045 |
| NEXT Insurance | $175 | $2,095 |
Cheapest Workers' Comp Insurance for Food Companies
For food businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $18 per month or $217 yearly.
Still, it’s worth checking quotes from other low-cost insurers like Progressive Commercial, Simply Business, Hiscox and The Hartford.
| Thimble | $18 | $217 |
| Progressive Commercial | $19 | $234 |
| Hiscox | $20 | $242 |
| Simply Business | $20 | $241 |
| The Hartford | $20 | $245 |
| biBERK | $21 | $255 |
| Coverdash | $21 | $248 |
| NEXT Insurance | $21 | $252 |
| Nationwide | $23 | $272 |
| Chubb | $24 | $292 |
Cheapest Professional Liability Insurance for Food Companies
The Hartford offers the most affordable professional liability insurance options for food companies, with low average monthly rates of $114. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Thimble.
| The Hartford | $114 | $1,374 |
| NEXT Insurance | $120 | $1,439 |
| Progressive Commercial | $123 | $1,470 |
| Thimble | $126 | $1,516 |
| Hiscox | $127 | $1,519 |
| Simply Business | $128 | $1,533 |
| Coverdash | $130 | $1,557 |
| biBERK | $133 | $1,594 |
| Nationwide | $139 | $1,668 |
| Chubb | $149 | $1,794 |
Cheapest BOP Insurance for Food Companies
Coverdash provides the most affordable BOP coverage for food companies, with an average yearly cost of $586 for bundled general liability and property protection. That's a savings of roughly $758 annually compared to The Hartford, the second most affordable option.
| Coverdash | $49 | $586 |
| The Hartford | $112 | $1,344 |
| Simply Business | $116 | $1,398 |
| Thimble | $127 | $1,525 |
| Progressive Commercial | $160 | $1,917 |
| Hiscox | $175 | $2,096 |
| Nationwide | $178 | $2,131 |
| Chubb | $196 | $2,346 |
| biBERK | $221 | $2,656 |
| NEXT Insurance | $253 | $3,037 |
What Type of Coverage Do You Need for a Food Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED FOOD BUSINESS COVERAGE
Most food businesses should carry general liability insurance, even if it’s not legally required, as it protects against common risks like bodily injury, property damage and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. This coverage helps companies with specialized services or large contracts where disputes are more likely.
Coverage Recommendations by Food Company Type
We've organized a list that ranks food service categories by their risk exposure and insurance needs. It starts with those facing the highest claim risk, helping businesses identify the right coverage for their specific needs.
Food Company Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
Restaurants (Full-Service) | General Liability, Workers' Comp, Commercial Property, Liquor Liability (if applicable), Business Interruption, Food Contamination Coverage | Customer slip-and-falls, kitchen fires, alcohol-related incidents, employee injuries | Burn/injury lawsuits, food poisoning claims, liquor liability suits, ADA compliance violations |
Food Trucks | Commercial Auto, General Liability, Business Property (equipment/tools), Workers' Comp, Product Liability | Vehicle accidents, equipment theft or damage, foodborne illness | Auto injury claims, equipment damage lawsuits, local permit violations |
Catering Services | General Liability, Product Liability, Workers' Comp, Inland Marine (for transported equipment), Commercial Auto | Food poisoning, dropped equipment, burns during setup | Illness-related lawsuits, property damage at event sites, vendor contract disputes |
Bakeries | General Liability, Product Liability, Commercial Property, Workers' Comp | Allergic reactions, oven fires, employee injuries | Burn injury claims, product liability lawsuits, slips in storefront |
Food Manufacturers | Product Liability, Commercial Property, General Liability, Equipment Breakdown, Environmental Liability | Equipment failure, product contamination, workplace injuries | Large-scale recall lawsuits, cross-contamination claims, regulatory fines |
Specialty Food Producers (e.g., jams, sauces) | Product Liability, General Liability, Business Property, Workers' Comp | Food spoilage, contamination, allergic reactions | Customer illness lawsuits, product mislabeling, recall-related litigation |
Meal Prep & Delivery Services | General Liability, Product Liability, Commercial Auto, Cyber Liability (for apps), Workers' Comp | Delivery accidents, packaging issues, food spoilage | Auto injury suits, data breach claims, food contamination disputes |
Farmers Market Vendors | General Liability, Product Liability, Tools & Equipment, Inland Marine | Food sampling illness, stand collapse, tent accidents | Customer illness, physical injury claims, permit noncompliance |
Ghost Kitchens | General Liability, Product Liability, Commercial Property, Workers' Comp, Cyber Liability | Equipment damage, third-party delivery issues, digital system failures | Food quality disputes, injury to delivery drivers, tech platform errors |
Packaged Food E-commerce | Product Liability, General Liability, Cyber Liability, Business Property | Spoiled or mislabeled products, shipping issues, data theft | Lawsuits from defective goods, privacy violation claims, mislabeling disputes |
How to Get the Best Cheap Business Insurance for Your Food Company
Here's a step-by-step method for finding the best and cheapest business insurance for your food company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To get the best deal, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To further narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, to align with your coverage needs and future ones, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The best way to find the lowest rates is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Food Business's Liability Risk
Reducing liability risk helps food businesses manage their insurance costs. We've organized risk mitigation strategies based on your business type or risk level to help you find the most suitable approach.
Food Business Risk Type | Included Types of Food Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Full-service restaurants, food manufacturers, food trucks, catering services | Strict food safety protocols (ServSafe, HACCP), kitchen ventilation maintenance, employee safety training, fire suppression systems, equipment inspections, alcohol server certification |
Moderately High | Bakeries, meal prep services, ghost kitchens, specialty food producers | Label allergen disclosures, maintain cold chain for perishables, fire extinguisher access, delivery procedure documentation, cyber protection tools for apps or orders |
Moderate | Farmers market vendors, e-commerce food sellers, shared kitchen tenants | Secure food storage, labeling standards, product testing before shipment, stall equipment safety checks, weather-proofing tents |
Moderately Low | Packaged snack makers, dry goods sellers, home-based bakers | Use licensed kitchen space, follow cottage food laws, keep production logs, audit ingredients and suppliers |
Lowest | Hobby food sellers, small-batch or seasonal producers | Limit batch sizes, document sanitation steps, separate personal and business finances, maintain general liability rider |
Best Insurance for Food Business: Bottom Line
Coverdash is the best insurer for food business insurance, offering the most affordable coverage overall. We also recommend getting quotes from The Hartford, Simply Business and Nationwide. For the best deal, talk to agents, research providers and pricing, and compare multiple quotes side by side.
Food Business Insurance: FAQ
Below, we answer common questions about food business insurance.
Who offers the best food business insurance overall?
Coverdash provides the top-rated business insurance for food companies, with a MoneyGeek score of 94 out of 100. The Hartford follows closely, excelling particularly in customer service.
Who has the cheapest business insurance for food companies?
Here are the cheapest business insurance companies for food businesses by coverage type:
- Cheapest general liability insurance: Coverdash at $34 per month
- Cheapest workers' comp insurance: Thimble at $18 per month
- Cheapest professional liability insurance: The Hartford at $114 per month
- Cheapest BOP insurance: Coverdash at $49 per month
What business insurance is required for food organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for food businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
How much does food business insurance cost?
Business insurance costs for food companies vary depending on your business size, coverage needs, and risk exposure. Below are the average monthly costs for commonly needed policies:
- General liability: $110 per month
- Workers comp: $20 per month
- Professional liability: $127 per month
- BOP insurance: $149 per month
How We Chose the Best Food Business Insurance
We selected the best business insurer for food companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.