Home Food Business Insurance for Home-Based Sellers
Sell safely and professionally while meeting vending and retail requirements with home-based food business insurance from Food Liability Insurance Program (FLIP).
Benefits of Home Food Business Insurance
Explore the perks of insuring your home food business with FLIP.
Meet Coverage Requirements
Whether you need to meet legal, venue, or retail requirements, FLIP offers limits that meet most expectations and an instant Certificate of Insurance (COI) after checkout.
Sell Food Safely
You care about your customers, but accidents still happen. If someone gets sick from something you sold them, your policy can cover some (or all) of their medical expenses, on top of your legal fees if they sue.
Coverage Catered to You
We understand your home food business faces different risks than a restaurant. Our policy contains essential coverages all home-based businesses need, plus the option to customize with add-ons.
What Is Home Food Business Insurance?
Home food business insurance is specifically designed to protect entrepreneurs who sell food they make at home to the public.
Being able to sell homemade food through safe, legal means is a game-changer when it comes to reducing overhead costs. However, your business still faces risks that could lead to unexpected expenses. If someone gets sick or injured after eating your products, or you cause damage to a venue’s property while setting up at an event, you could be held responsible for:
- Medical expenses
- Repairs/replacements to damaged property
- Legal expenses if you need to defend yourself against a claim
FLIP’s insurance for home food businesses is there to help you cover these costs and prevent you from paying entirely out of pocket.
What Insurance Do I Need to Sell Food From Home?
FLIP’s home food business insurance policy contains the essential coverages all home-based operations need. Of course, your business is as unique as the recipes you develop, so your business may need additional coverage.
Check out the different types of home-based food business insurance below and what type of claims each covers to decide what best fits your needs.
Type of Insurance | What It Covers | Example Claim | Included in FLIP’s Home Food Business Policy? |
General liability | Bodily injuries or property damage you cause to others with your business operations | Your setup at the farmers market collapses and damages merchandise at the neighboring booth | ✅ |
Product liability | Bodily injuries or damage to other people’s property caused by your homemade food product(s) | A customer gets food poisoning from one of your products and sues you over their medical expenses and lost wages | ✅ |
Personal and advertising injury | Third-party claims of financial or reputational harm because of the way you promote your business | You advertise your fruit preserves as the only organic option in town, and another local business sues you, claiming they sell organic preserves too | ✅ |
Products-completed operations | Third-party claims stemming from both the product(s) you sell and any services you provide | A customer claims they chipped a tooth on a hard, foreign object in one of your baked goods | ✅ |
Damage to premises rented to you | Limited property damage coverage for a rented space | You rent a commercial kitchen for a day, and accidentally cause a grease fire that damages the facility | ✖️ (optional) |
Commercial auto | Damages caused by/done to your work vehicle (even if you sometimes use it for personal reasons) | Another driver rear-ends you while you’re driving to a customer’s house to make a delivery | ✖️ (optional) |
Cyber liability | First- and third-party expenses following a cyber attack (e.g., data breach, phishing scam, etc.) | A ransomware attack locks your online ordering database, making it impossible to receive and fulfill customer orders | ✖️ (optional) |
Professional liability | Financial damage to other people caused by your professional advice | You create an online course teaching people how to market their home food business, but one of your customers claims your advice led them to lose money and sues you | ✖️ (optional) |
Tools and equipment (inland marine) | Repairing or replacing stolen or damaged business equipment that you bring with you to different locations | Your stand mixer is stolen out of your vehicle while you set up your booth at an event | ✖️ (optional) |
Workers compensation | State-required benefits for employees who suffer a workplace injury or illness | Your employee slips on a wet floor while working in your kitchen, pulls a back muscle, and needs medical attention | ✖️ (optional) |
Home Food Business Insurance vs. Homeowners Insurance
“Do I really need home food business insurance if I already have homeowners insurance?”
Yes, you do. Most homeowners policies do not cover any business-related activities, so if you have any liability claims against your business, your homeowners insurance would not cover them.
It is sometimes possible to get a rider or endorsement for your homeowners policy that extends your coverage to home-based business activities. However, this is usually very limited, so it’s recommended to carry a separate business insurance policy with higher limits and more comprehensive coverage.
Who Needs Insurance to Sell Food From Home?
Anyone making and selling food from a residential location needs home food business insurance, including (but not limited to):
How Much Does Insurance for Home Food Businesses Cost?
FLIP offers home food business insurance for as low as $25.92 per month or $299 per year. Some factors that can affect the cost of your premium include:
- The state(s) you do business in
- The insurance limits you need
- Your gross annual revenue
- The add-on coverages you include on your policy
- If you have a history of filing expensive claims
Why Home Food Business Owners Choose FLIP
Here’s what others have to say about their experience from 300+ available reviews.
Coverage Details Limits
General Liability Aggregate Limit
$2,000,000
Products – Completed Operations Aggregate Limit
$2,000,000
Personal and Advertising Injury Limit
$1,000,000
General Each Occurrence Limit
$1,000,000
Damage to Premises Rented to You Limit (Any One Premises)
$300,000
Liability Deductible
NO DEDUCTIBLE
Inland Marine Limit (Any One Article / Aggregate)
$5,000/$10,000
Inland Marine Limit (Per Occurrence) – Deductible
$250
Medical Expense Limit
$5,000
FAQs About Insurance to Sell Food From Home
Why Should I Choose FLIP for Home Food Business Insurance?
- Highly-rated insurance carrier
- Affordable premiums
- Free, unlimited additional insureds
- Purchase 100% online
- Instant Certificate of Insurance (COI)
- 24/7 access to policy documents
- Licensed in all 50 states
Do I Need Insurance for My Home Food Business?
Yes. If you plan to sell your homemade food products at events, markets, and/or festivals, there is a good chance the venue or event organizer will require you to carry liability insurance.
Beyond meeting requirements, having insurance also provides peace of mind. If you aren’t constantly worried about the financial consequences of claims like losses and lawsuits, you have more time to focus on running and growing your home food business.
Is Home Food Business Insurance Legally Required?
In most cases, no, but that doesn’t mean getting insured isn’t a critical part of starting your home food business. Your homeowners insurance typically won’t cover any liability coming from your business operations, and things like medical bills and legal costs can add up quickly.
Most states and counties strongly encourage home-based food entrepreneurs to carry general and product liability insurance, even if they don’t require it. Don’t wait for an accident to happen before you get serious about getting covered. Get your free quote in 10 minutes or less and enjoy same-day coverage and proof of insurance with FLIP!