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Insurance Programs for Delis & Sandwich Shops

Insuring Delicatessens

Delicatessens have certain exposures that are unique in retail food industry. Many delis prepare and serve food, cater parties, deliver breakfast and lunch items, and maintain stock that is subject to perishing and spoilage.

In order to evaluate the insurance requirements, it is important to determine the risks of operating a delicatessen or a sandwich shop. The obvious liability exposures are trip and falls, food and airborne illness, liquor, and the auto exposure for deliveries. Other concerns are the fire legal liability and personal & advertising injury.

A common coverage often overlooked is food spoilage. Simply explained, it covers the loss or damage to the food and beverage inventory in the event of a covered cause of loss. It may be necessary to add mechanical breakdown to protect against the failure of the refrigeration equipment. It is also important to insure against a power failure that can cause damage to the stock and inventory.

Insuring the contents and equipment should be calculated based on the current replacement cost. Generally the rating is determined based on the amount covered, the premises area, the construction of the building, and any fire protection safety equipment such as sprinklers. A way to keep the cost low is to raise the deductible or place a coinsurance requirement on the policy.

Loss of business income would provide coverage for claims of income lost due to the suspension of business operations due to a covered cause of loss. Many BOP’s or business owners policies provide loss of income on an actual loss sustained basis for up to one year so it is generally not necessary to provide a dollar amount of coverage or a specific time period.

Workers’ compensation and statutory disability or DBL insurance may be required by law. Building coverage and limits for monies & securities, as well as plate glass insurance are additional options that may be important to consider.

LIABILITY & UMBRELLA INSURANCE