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7 Reasons Food Entrepreneurs May Need Vendor Insurance

Table of Contents

If you are a small food business owner, here are a few reasons to purchase vendor insurance:

  1. To protect you from product liability. If one of the products you create, manufacture, and/or sell causes harm to a customer, for example if a customer has an allergic reaction,you will be glad to have insurance to cover the cost.
  2. To allow you to expand your business with confidence. It can be intimidating to run a small business and invest your time and money into its success. Insurance can give you confidence that the effort you put into your business will be protected.
  3. To allow you to sell at markets, festivals, and other events that require liability insurance. Many events, fairs, and festivals require that their vendors purchase a liability insurance policy and add the event as an additional insured. A vendor insurance program like FLIP allows vendors to add additional insureds at no additional cost.
  4. To protect your business personal property. One of the investments that you make as a vendor is in property for your business. The right vendor insurance can protect you from financial loss if that property is damaged.
  5. To protect you in case of damage to a rented premises. This is especially important for vendors who rent a commercial kitchen where they prepare their goods.
  6. To protect you in case of third-party injury. This is one of the most common scenarios we hear about at FLIP. An example of this might be a patron tripping on an extension cord or a cup of hot coffee spilling on a customer.
  7. To take advantage of a great program meant to help small food businesses. Because, through FLIP, it is easy to get the best insurance for small business owners quickly. FLIP’s innovative program allows small food business owners to purchase a liability insurance policy from an “A+” rated carrier in minutes online for a competitive price.

Learn more about vendor insurance or contact us to get your business covered today!


Lyndsey Larsen is the Marketing Manager for FLIP and writes about business, marketing, entrepreneurship, and insurance.

Lyndsey Larsen is an experienced writer with a background in corporate communications and nonprofits, SAAS corporations, and nutraceutical companies. She has previously worked as a journalist for regional and national publications. In her spare time, she enjoys chasing butterflies, rockhounding, and spending time with her two kids in Utah’s mountains or deserts. Find Lyndsey on LinkedIn.

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