Food business insurance costs vary widely across coverage types, helping you budget more effectively when you understand these differences. MoneyGeek's analysis shows monthly premiums range from $42 for workers' compensation to $158 for a business owner's policy (BOP).
How Much Does Food Business Insurance Cost?
Food business insurance starts at $42 per month, but your specific business details will determine your actual rate.
Discover cheap food business insurance below.
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Updated: August 21, 2025
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Key Takeaways
Food business insurance costs range from $42 to $158 monthly, depending on your coverage type.
Your food insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable food business insurance costs.
Average Food Business Insurance Cost Overall
| BOP | $158 |
| General Liability | $108 |
| Professional Liability (E&O) | $110 |
| Workers' Comp | $42 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Food Business Insurance Cost for General Liability Coverage by State
Your food business insurance cost for general liability coverage depends on where you operate. Maine offers the most savings at $94 monthly (versus the $108 national average), while New York costs $126 monthly.
| Alabama | $106 |
| Alaska | $97 |
| Arizona | $101 |
| Arkansas | $104 |
| California | $120 |
| Colorado | $107 |
| Connecticut | $118 |
| Delaware | $116 |
| Florida | $117 |
| Georgia | $110 |
| Hawaii | $113 |
| Idaho | $103 |
| Illinois | $119 |
| Indiana | $106 |
| Iowa | $103 |
| Kansas | $105 |
| Kentucky | $99 |
| Louisiana | $120 |
| Maine | $94 |
| Maryland | $103 |
| Massachusetts | $114 |
| Michigan | $102 |
| Minnesota | $101 |
| Mississippi | $109 |
| Missouri | $107 |
| Montana | $108 |
| Nebraska | $102 |
| Nevada | $121 |
| New Hampshire | $108 |
| New Jersey | $123 |
| New Mexico | $109 |
| New York | $126 |
| North Carolina | $94 |
| North Dakota | $94 |
| Ohio | $100 |
| Oklahoma | $101 |
| Oregon | $100 |
| Pennsylvania | $125 |
| Rhode Island | $119 |
| South Carolina | $111 |
| South Dakota | $101 |
| Tennessee | $106 |
| Texas | $109 |
| Utah | $102 |
| Vermont | $104 |
| Virginia | $99 |
| Washington | $123 |
| West Virginia | $114 |
| Wisconsin | $106 |
| Wyoming | $100 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Food Business Insurance Cost for Workers’ Compensation Coverage by State
Your food business's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $36 monthly, while New York charges the highest at $49 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Food Business Insurance Cost for Professional Liability Coverage by State
Your food business cost for professional liability varies by state. The national average runs $110 monthly. Alaska offers the lowest rates at $88 monthly, while New York businesses pay the highest for E&O insurance at $128 monthly.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Food Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show significant state variations for food business insurance costs. For example, Pennsylvania businesses pay $184 monthly, while North Dakota businesses pay $135 for similar coverage.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Food Business Insurance Cost
Food business insurance costs are determined by several factors that insurance companies review to set your rates. Understanding these pricing elements helps you create more accurate budget plans.
Geographic location
Your business location affects workers' compensation rates due to local health regulations and claim frequencies. Operating in areas with strict food safety requirements or higher crime rates increases your risk profile, while state-specific regulations create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single customer injury claim or food safety incident can substantially increase your general liability rates at renewal.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding kitchen staff, servers, or delivery drivers increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Food delivery, catering, and on-site dining each carry different risk levels. A small café faces lower premiums than a full-service restaurant with catering and delivery services.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. For example, a food truck earning $100,000 annually will pay less than a restaurant chain with $2 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
More expensive kitchen equipment and delivery vehicles require higher coverage limits, increasing your premiums. A restaurant with commercial-grade ovens, refrigeration systems, and delivery fleet needs more coverage than a small café with basic cooking equipment.
Credit Score and Financial Stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Food Business Insurance
Smart shopping and risk management strategies can lower your food business insurance costs, and these proven tips will help reduce your premiums while strengthening your business safety profile.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your food service operation needs prevents overpaying for unnecessary coverage. General liability protects against customer injuries and food-related claims. Food spoilage insurance covers inventory losses from equipment breakdown. Professional liability helps if customers get sick from your products.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can compare multiple carriers for you.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability, property insurance and food spoilage coverage with one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out-of-pocket for small claims, but you'll save on regular premium payments. Consider your cash flow when selecting deductible amounts.
- 5
Pay annually instead of monthly
Most insurance carriers charge extra fees for monthly payment plans. Paying your full premium annually eliminates these processing charges. Many insurers also offer discounts for annual payments.
- 6
Review and adjust your coverage annually
Your insurance needs change as your food business grows. Review your coverage yearly to ensure it matches your current operations. Drop unnecessary coverage and adjust limits based on your business size and risks.
Insurance for Food Business Cost: Bottom Line
Food business insurance costs range from $42 to $158 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually helps you find more affordable rates.
Food Business Insurance Cost: FAQ
Business owners frequently ask about food company insurance costs, and our research team has answered the most common questions below.
What is the cheapest type of food business insurance?
Workers' compensation insurance costs $42 monthly, but only covers employee injuries. Most food businesses need general liability coverage to protect against customer accidents and property damage claims.
How much can I save by bundling my food business insurance policies?
Bundling insurance policies through a BOP offers the most cost-effective coverage for food businesses, with potential savings when combining multiple types of protection under one carrier.
What factors make my food business insurance more expensive?
Your safety record, number of employees, claims history and location are factors that can make your food business insurance more expensive.
Should I choose a $500 or $2,500 deductible for my food business insurance?
Higher deductibles lower your monthly premiums but require more cash when filing claims. Consider your business's cash reserves and claim likelihood when choosing your deductible.
How much does workers' compensation cost for food businesses by state?
Workers' compensation rates for food businesses range from $36 monthly in North Carolina to $49 monthly in New York, varying significantly based on your business location.
Is business owner's policy (BOP) worth the extra cost for food companies?
BOP insurance for food businesses costs $158 monthly on average. It bundles general liability, commercial property and business interruption coverage, offering better value than purchasing policies separately.
How often should I shop around for food business insurance quotes?
Shop around for insurance quotes annually during renewal time. Compare at least three companies to find better rates, particularly if your business has grown or changed services.
How We Determined Food Business Insurance Costs
We collected food business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small food businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the food industry.
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.