How to Get Business Insurance for Restaurants and Food Companies

• Food spoilage and contamination.
• Grease fires.
• Customer intoxication (and any resulting actions).
• Broken or damaged equipment.

Good choice for you if:

• You already have a sense of the type of insurance your business needs.
• You want to get a quote and purchase a policy quickly.
• You don’t want to deal with a broker.
• You don’t have complex policy needs — e.g., you’re looking only to purchase a general liability policy or a BOP.

Possible downsides:

• It may be time-consuming to contact multiple providers for quotes, especially since not all providers offer the same types of business insurance and coverage.
• Although you can talk to a representative over the phone, you may not get the same level of assistance as you would working with a broker or independent agent.

Good choice for you if:

• You want to manage the buying process on your own, but want to avoid the hassle of contacting multiple providers for quotes.
• You would like the option of talking to an expert to help you understand your insurance needs, walk you through the buying process or answer any questions you may have.

Possible downsides:

• Marketplaces partner with individual insurance providers, so you’ll receive quotes only from providers that the marketplace works with.
• Marketplaces don’t underwrite insurance policies themselves, and not all of these companies allow you to manage claims or post-purchase issues through their systems. You may find the communication between the different parties — you, the marketplace, the provider — isn’t always seamless.

Good choice for you if:

• You’re buying business insurance for the first time or are unsure of what types of coverage you need.
• You want to work directly with one person who can answer any questions you have, explain policy complexities and generally help you through the insurance buying process.
• You don’t want to spend time contacting providers yourself to get quotes.

Possible downsides:

• Because brokers work on commission, they might try to sell you additional policies or coverage that you don’t need. Make sure that any broker you work with is reputable, and is looking out for your interests first.
• Brokers are not obligated to find you the lowest rates for your policies.
• Some brokers charge an additional fee for their services.
• The process of shopping with a broker will likely be slower compared with using an online marketplace or contacting providers directly.

• Policy coverage: What exactly is covered under the policy? What isn’t covered? You’ll want to understand the policy details to make sure you’re getting the coverage your business needs.
• Limits of liability: How much of a loss will the insurance provider cover? For example, among Insureon customers, most food and beverage businesses choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. Larger businesses or those at a higher risk level may need a higher limit.
• Price: How much will the policy cost? Is there a deductible on your policy — and if so, how much is it? When evaluating the costs of two different providers, you’ll want to try to make sure that the coverage and liability limits are the same so that it’s a more balanced comparison.
• Reviews: Check out the ratings and reviews of any insurance provider before purchasing a policy. You can see how many complaints have been filed against a company using the National Association of Insurance Commissioners website.