Food business insurance averages $105 monthly, with costs ranging from $36 to $184 based on coverage type and location.
Get matched with cheap food business insurance below.
Updated: November 21, 2025
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Food business insurance costs range from $437 to $2,203 annually on average, depending on coverage type, state and sub-industry.
Your food insurance premiums depend on location, claims history and employee count.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable food business insurance costs.
We found average business insurance costs for food companies for commonly needed coverage:
| BOP | $158 | $1,898 |
| General Liability | $108 | $1,296 |
| Professional Liability (E&O) | $110 | $1,321 |
| Workers' Comp | $42 | $507 |
*These rates are for small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your business factors and location.
Select your industry and state to get a customized quote.
Food business general liability insurance costs $108 monthly on average nationwide. Maine offers the lowest rates at $94 monthly, while New York charges $126, a $32 difference driven by state regulations and claim patterns.
| Alabama | $106 | $1,274 |
| Alaska | $97 | $1,165 |
| Arizona | $101 | $1,217 |
| Arkansas | $104 | $1,245 |
| California | $120 | $1,446 |
| Colorado | $107 | $1,287 |
| Connecticut | $118 | $1,410 |
| Delaware | $116 | $1,396 |
| Florida | $117 | $1,405 |
| Georgia | $110 | $1,319 |
| Hawaii | $113 | $1,360 |
| Idaho | $103 | $1,231 |
| Illinois | $119 | $1,425 |
| Indiana | $106 | $1,266 |
| Iowa | $103 | $1,236 |
| Kansas | $105 | $1,261 |
| Kentucky | $99 | $1,193 |
| Louisiana | $120 | $1,442 |
| Maine | $94 | $1,125 |
| Maryland | $103 | $1,239 |
| Massachusetts | $114 | $1,362 |
| Michigan | $102 | $1,229 |
| Minnesota | $101 | $1,218 |
| Mississippi | $109 | $1,304 |
| Missouri | $107 | $1,284 |
| Montana | $108 | $1,292 |
| Nebraska | $102 | $1,228 |
| Nevada | $121 | $1,456 |
| New Hampshire | $108 | $1,291 |
| New Jersey | $123 | $1,471 |
| New Mexico | $109 | $1,305 |
| New York | $126 | $1,508 |
| North Carolina | $94 | $1,125 |
| North Dakota | $94 | $1,129 |
| Ohio | $100 | $1,205 |
| Oklahoma | $101 | $1,213 |
| Oregon | $100 | $1,206 |
| Pennsylvania | $125 | $1,496 |
| Rhode Island | $119 | $1,426 |
| South Carolina | $111 | $1,337 |
| South Dakota | $101 | $1,214 |
| Tennessee | $106 | $1,266 |
| Texas | $109 | $1,310 |
| Utah | $102 | $1,222 |
| Vermont | $104 | $1,247 |
| Virginia | $99 | $1,182 |
| Washington | $123 | $1,476 |
| West Virginia | $114 | $1,362 |
| Wisconsin | $106 | $1,274 |
| Wyoming | $100 | $1,201 |
These general liability rates are for food businesses with two employees. Your rates depend on your location and claims history.
Workers' compensation for food businesses costs $36 monthly in North Carolina and $49 in New York.
| Alabama | $41 |
| Alaska | $38 |
| Arizona | $40 |
| Arkansas | $40 |
| California | $47 |
| Colorado | $42 |
| Connecticut | $46 |
| Delaware | $46 |
| Florida | $45 |
| Georgia | $43 |
| Hawaii | $44 |
| Idaho | $40 |
| Illinois | $47 |
| Indiana | $41 |
| Iowa | $40 |
| Kansas | $41 |
| Kentucky | $39 |
| Louisiana | $49 |
| Maine | $37 |
| Maryland | $40 |
| Massachusetts | $44 |
| Michigan | $40 |
| Minnesota | $39 |
| Mississippi | $43 |
| Missouri | $42 |
| Montana | $42 |
| Nebraska | $40 |
| Nevada | $48 |
| New Hampshire | $42 |
| New Jersey | $48 |
| New Mexico | $42 |
| New York | $49 |
| North Carolina | $36 |
| Oklahoma | $40 |
| Oregon | $39 |
| Pennsylvania | $49 |
| Rhode Island | $47 |
| South Carolina | $43 |
| South Dakota | $39 |
| Tennessee | $42 |
| Texas | $43 |
| Utah | $40 |
| Vermont | $41 |
| Virginia | $38 |
| West Virginia | $44 |
| Wisconsin | $41 |
*These rates apply to food businesses with two employees operating across different states.
Professional liability insurance for food businesses costs $110 monthly on average. Alaska charges the lowest rate at $88 monthly, while New York charges $128.
| Alabama | $109 |
| Alaska | $88 |
| Arizona | $104 |
| Arkansas | $108 |
| California | $124 |
| Colorado | $107 |
| Connecticut | $120 |
| Delaware | $120 |
| Florida | $119 |
| Georgia | $113 |
| Hawaii | $105 |
| Idaho | $103 |
| Illinois | $121 |
| Indiana | $108 |
| Iowa | $105 |
| Kansas | $107 |
| Kentucky | $103 |
| Louisiana | $117 |
| Maine | $96 |
| Maryland | $107 |
| Massachusetts | $114 |
| Michigan | $105 |
| Minnesota | $104 |
| Mississippi | $110 |
| Missouri | $109 |
| Montana | $110 |
| Nebraska | $104 |
| Nevada | $127 |
| New Hampshire | $110 |
| New Jersey | $127 |
| New Mexico | $113 |
| New York | $128 |
| North Carolina | $97 |
| North Dakota | $96 |
| Ohio | $102 |
| Oklahoma | $100 |
| Oregon | $102 |
| Pennsylvania | $128 |
| Rhode Island | $121 |
| South Carolina | $112 |
| South Dakota | $103 |
| Tennessee | $108 |
| Texas | $110 |
| Utah | $106 |
| Vermont | $106 |
| Virginia | $100 |
| Washington | $127 |
| West Virginia | $118 |
| Wisconsin | $110 |
| Wyoming | $102 |
*These professional liability rates reflect food businesses with two employees. Your rates depend on your services and location.
BOP insurance for food businesses ranges from $135 monthly in North Dakota to $184 in Pennsylvania. California ($180), New York ($183) and Nevada ($182) have high costs.
| Alabama | $159 |
| Alaska | $140 |
| Arizona | $152 |
| Arkansas | $151 |
| California | $180 |
| Colorado | $157 |
| Connecticut | $172 |
| Delaware | $172 |
| Florida | $171 |
| Georgia | $158 |
| Hawaii | $162 |
| Idaho | $151 |
| Illinois | $175 |
| Indiana | $152 |
| Iowa | $148 |
| Kansas | $155 |
| Kentucky | $144 |
| Louisiana | $172 |
| Maine | $138 |
| Maryland | $151 |
| Massachusetts | $164 |
| Michigan | $147 |
| Minnesota | $147 |
| Mississippi | $160 |
| Missouri | $155 |
| Montana | $159 |
| Nebraska | $151 |
| Nevada | $182 |
| New Hampshire | $156 |
| New Jersey | $181 |
| New Mexico | $162 |
| New York | $183 |
| North Carolina | $137 |
| North Dakota | $135 |
| Ohio | $146 |
| Oklahoma | $144 |
| Oregon | $150 |
| Pennsylvania | $184 |
| Rhode Island | $177 |
| South Carolina | $164 |
| South Dakota | $149 |
| Tennessee | $156 |
| Texas | $159 |
| Utah | $151 |
| Vermont | $154 |
| Virginia | $145 |
| Washington | $178 |
| West Virginia | $168 |
| Wisconsin | $155 |
| Wyoming | $146 |
*These BOP rates are for food businesses with two employees. Your rates depend on your business size, location and coverage needs.
Food business insurance costs range from $64 to $144 monthly across insurers, with coverage type and business specifics driving the price differences.
| Chubb | $133 | $1,590 |
| Coverdash | $64 | $768 |
| Hiscox | $116 | $1,398 |
| NEXT Insurance | $122 | $1,459 |
| Nationwide | $122 | $1,463 |
| Progressive Commercial | $109 | $1,304 |
| Simply Business | $91 | $1,094 |
| The Hartford | $89 | $1,067 |
| Thimble | $72 | $870 |
| biBERK | $144 | $1,727 |
Food business insurance costs vary by industry type and coverage selection, ranging from $46 to $214 monthly:
| Bakery | $134 | $1,606 |
| Catering | $99 | $1,192 |
| Food Truck | $207 | $2,485 |
| Restaurant | $214 | $2,566 |
Food business insurance costs depend on multiple factors insurers consider when determining your policy rates.
Local health department requirements and permit costs range from $50 to $500 annually depending on your jurisdiction. High-traffic festivals and urban areas have stricter regulations than neighborhood farmers markets, affecting your insurance requirements and operating costs.
Foodborne illness claims can cost small vendors $50,000 to $500,000 in legal fees, medical costs and lost business. Contamination allegations, even without confirmed outbreaks, trigger rate increases of 25% to 50% at your next renewal.
Many food vendors operate solo or with family members, keeping labor costs contained. Adding paid staff to handle busy events or multiple locations means purchasing workers' comp that covers burns, cuts and other kitchen-related injuries.
Small community events require standard liability coverage. Major festivals, sporting venues and multi-day fairs require $2 million to $5 million in coverage limits plus additional insured endorsements naming the event organizer on your policy.
Event frequency and daily sales indicate your customer volume and exposure. Weekend warriors earning $35,000 at seasonal markets operate quite differently than full-time vendors hitting festivals year-round and grossing $150,000.
Product liability protects against foodborne illness claims while general liability covers slip-and-falls near your booth. Most vendors carry $1 million in coverage, though major events and venues frequently require $2 million before issuing permits.
Basic setups, like tents, tables, coolers and serving supplies, cost a few thousand dollars. Commercial-grade equipment, generators, refrigeration units and substantial food inventory require comprehensive property coverage to protect your larger investment.
Valid health permits and food handler certifications demonstrate compliance to insurers. Vendors maintaining clean inspection records, proper food storage practices and documented temperature logs receive better rate consideration than those with violations.
Reducing your food business insurance cost requires strategic shopping and our guide to smart business practices. Here's how you can find the best cheap business insurance for your food business.
Food vendors need general liability for customer injuries and third-party claims.
Add commercial auto if you transport your setup and equipment breakdown coverage for refrigeration and generators. Consider workers' compensation if you have staff and event cancellation coverage if you go to festivals and farmers' markets.
Food vendor premiums vary based on what you sell. Hot food with grilling or frying carries higher fire risk than prepackaged items or beverages.
Combining general liability, product liability and equipment coverage saves 17% to 24% compared to purchasing separately.
Higher property deductibles of $500 to $1,500 reduce premiums by 18% to 25%, working well for vendors with basic carts and equipment.
Monthly payment plans add 5% to 10% in processing fees. On a $2,800 food vendor policy, that's $140 to $280 extra annually.
Review your policy whenever you add locations or events, hire employees or upgrade equipment.
For most food businesses, insurance premiums fall between $36 and $184 each month. Your actual cost will vary based on your business size, claims record and location.
Food business owners commonly ask about insurance costs. We answered the most frequent questions below:
Workers' compensation is the cheapest at $42 monthly, though it only covers employee injuries. Most food businesses need general liability coverage ($108 monthly) since it protects against customer accidents and property damage claims.
You'll pay more in these states. General liability in California runs $120 monthly (versus $108 national average), and BOP costs $180 monthly (versus $158 average). New York is similar at $126 and $183, respectively.
Bundling policies saves 15% to 25% compared to buying them separately. Insurers reward customers who bundle commercial auto, general liability and commercial property coverage.
Higher premiums result from multiple risk factors: previous insurance claims, locations with high crime rates, larger staff sizes, specialized equipment values, poor credit history and offering high-risk food services.
Higher deductibles cut monthly premiums but increase your out-of-pocket costs per claim. Choose based on your available cash reserves and claim history. If you have $2,500 available for emergencies, the higher deductible saves money long-term.
Workers' compensation for food businesses costs $36 monthly in North Carolina and $49 in New York.
Yes. BOP costs $158 monthly and bundles general liability, commercial property and business interruption coverage. This bundled approach costs less than buying policies separately and simplifies your coverage management.
Shop annually when your policy renews. Compare quotes from at least three insurers; you could save 15% to 30%. New hires, equipment purchases or service expansions change your risk profile and often qualify you for better rates.
Food businesses deal with insurance challenges traditional retailers don't: foodborne illness claims, kitchen fire risks and employee injuries in fast-paced commercial environments. Our analysis shows what coverage actually costs using real business profiles, helping you budget accurately and find insurers who understand food industry risks.
We collected food business insurance quotes from companies across states using a standardized business profile: two employees (three people total, including the owner), $150,000 annual payroll, $300,000 annual revenue and established business status. Coverage limits were $1 million per occurrence and $2 million aggregate for all types except BOP, which included these limits plus $5,000 business property coverage.
This profile represents a typical small food business (restaurant, catering company, food truck or specialty food producer) requiring comprehensive coverage. We selected companies with national coverage and online quoting that serve the food industry.
Food businesses operate in high-risk environments. Kitchen fires, slip-and-fall accidents and foodborne illness claims create liability exposure. Your insurance needs differ from general retail, as hot cooking equipment, knife injuries and food safety regulations require specific coverage. Our standardized profile shows what adequate protection costs across coverage types and providers, helping you avoid underinsurance.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
