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Food Business Insurance

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Food business insurance

Food business insurance NZ

Food business insurance is a specific type of coverage designed for businesses that manufacture, serve, or sell food. In essence, it provides protection against various risks that food-related businesses can encounter, such as food contamination, injuries on the premises, equipment breakdown, and more.

Why is food business insurance important?

The food industry has its own unique set of challenges. These range from the basic concerns of keeping food fresh and safe for consumption to meeting rigorous health standards. One tiny misstep can lead to severe consequences, both in terms of financial losses and harm to the company’s reputation.

For instance, a minor food contamination could lead to a chain of illnesses, making the business liable for medical costs and potential lawsuits. Even without a critical event, businesses can incur expenses due to equipment malfunctions or damage to the premises. Thus, food business insurance acts as a safety net, providing financial support in the face of unexpected events and ensuring continuity for the business.

In New Zealand, the average cost of food business insurance typically ranges between $150 – $300 per month. 

It’s crucial to have food business coverage if your business:

  • Serves food to the public
  • Manufactures or packages food
  • Delivers or caters food
  • Operates from a physical storefront

What covers are typically included in food business insurance? 

Public Liability

This policy covers common food business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.

Best For
  • Business Accident Coverage
  • Third-party Damages
  • Legal Cost Protection

Statutory Liability

This cover is a type of protection that helps food businesses cover costs if they accidentally break certain laws or regulations.

Best For
  • Unintentional breaches protection
  • Legal costs
  • Fines and penalties

Business Contents/Fitout Insurance

Business contents insurance in NZ is for protecting all the important stuff inside a food business. If there’s a problem or accident, the insurance can help with the expenses.

Best For
  • Accidents 
  • Floods
  • Fires

Stock Insurance

Stock insurance in NZ is a type of coverage that helps protect food businesses from the loss or damage to the items they sell.

Best For
  • Mishaps 
  • Natural Disasters
  • Fires

Employers Liability

This insurance helps protect food businesses from financial losses if an employee suffers injuries or illnesses at work.

Best For
  • Workplace injuries
  • Legal expenses
  • Compensation payments

Employment Disputes

This insurance in NZ covers food businesses legal costs and other expenses arising from disagreements between employees and their food business employers.

Best For
  • Mediation costs
  • Legal expenses
  • Settlement fees

Building Insurance

Building insurance in NZ is a type of coverage that helps pay for repairs or rebuilding if your building or commercial property gets damaged. 

Best For
  • Accidents 
  • Natural disasters
  • Fires

Business Interruption Insurance

Helps protect food restaurants when they face unexpected events, like natural disasters or fires, which lead to temporary shutdowns or disruptions in their operations. It covers loss of income and additional expenses incurred during the interruption period.

Best For
  • Income loss 
  • Extra expenses
  • Temporary shutdown 

How much does food business insurance cost?

Food business insurance premiums are calculated on several different factors including:

  • Types of cover
  • Turnover
  • Location 
  • Claims History 

Food business insurance in NZ typically costs between $150 to $300 per month

Who needs food business insurance?

Essentially, any business that deals with food in some capacity should consider food business insurance. This includes:

  • Restaurants and cafes
  • Food trucks
  • Catering services
  • Bakeries
  • Grocery stores
  • Food manufacturers and packagers
  • Bars and pubs serving food

Food business insurance covers a range of events, including foodborne illnesses, injuries on the business premises, damages to equipment, loss due to theft, and more. It provides financial support to help the business recover and continue its operations after unexpected events.

Absolutely! Every food business has its unique requirements. With the help of a broker, like Gerrards, you can tailor your policy to match the specific risks and concerns your business faces.

How do I get proof of food business insurance

You can usually get proof of food business insurance same day when you purchase insurance through Gerrards.

Acquiring a food business insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or lease.

To obtain insurance coverage promptly, contact one of our food business insurance brokers. We may require you to provide some fundamental details about your business, such as:

  • The name of your business
  • The total number of employees
  • Predicted annual income
  • Years of experience in the industry

What does food business insurance not cover?

Normal Wear and Tear

The gradual deterioration of equipment over time isn’t covered.

Dishonest Acts

Fraudulent activities or intentional misrepresentations by the business owner or representatives are not protected.

War or Nuclear Risks

Most policies exclude damages from war, civil unrest, or nuclear incidents.

Other common questions about food business insurance

Typically, employee-related accidents are covered under employers liability insurance. This is typically included as part of food business insurance.

Yes, many insurance companies offer discounts or reduced rates for businesses that have safety measures in place, such as fire suppression systems, regular equipment maintenance, and safety training for employees.

This depends on the specifics of your policy. Some insurance policies might cover losses due to unexpected power outages, especially if they result in spoilage of perishable items. It’s crucial to discuss this with your broker.

Most food business insurance policies offer coverage for legal fees and defense costs associated with covered claims. However, it’s always best to clarify this with your insurance provider.

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