How much does insurance cost for delis and sandwich shops?
Top business insurance policies for delis and sandwich shops and their cost
Here are the top kinds of insurance policies purchased by sandwich shops and delis and their average monthly costs:
- Business owner's policy (BOP): $144 per month
- General liability insurance: $149 per month
- Workers' compensation insurance: $100 per month
- Liquor liability insurance: $64 per month
- Commercial auto insurance: $222 per month
- Cyber insurance: $129 per month
Our figures are sourced from the median cost of policies purchased by Insureon sandwich shop and deli customers. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
Business owner’s policy
Deli and sandwich shop owners typically pay an average of $144 per month, or $1,734 annually, for a business owner’s policy (BOP).
A BOP bundles general liability insurance with property coverage, usually at a discounted rate. Policyholders can often add insurance endorsements, such as spoilage coverage, business interruption insurance, or equipment breakdown coverage.
This is the average business owner's policy for deli owners who buy from Insureon:
Insurance premium: $144 per month
Policy limit: $1 million per occurrence, $2 million aggregate
Deductible: $750
The cost of a business owner's policy is determined by your sandwich shop's location, operations, and value of business property. Delis with high-value kitchen equipment and furnishings tend to pay higher premiums.
Not all deli and sandwich shop owners qualify for a business owner’s policy. Check with your Insureon agent to find out if your business is eligible.
General liability insurance
Delis pay an average of $149 per month, or $1,783 annually, for general liability insurance.
This policy protects delis against customer bodily injuries, such as customer slip-and-fall accidents, along with property damage and advertising injuries. Additionally, general liability often includes product liability coverage.
It also covers foodborne illness claims, which is an important protection for delis since a customer who becomes sick from food served at your shop could hold your business liable.
Insureon’s licensed agents typically recommend purchasing a business owner’s policy, which is an insurance package that bundles general liability coverage with commercial property insurance at a discounted rate. A BOP protects your own business property and defends against common third-party risks.
This is the average general liability policy for deli owners who buy from Insureon:
Insurance premium: $149 per month
Policy limit: $1 million per occurrence, $2 million aggregate
Learn more about how your insurance premium is calculated, cost information, and how to save money on your general liability coverage.
Workers’ compensation insurance
The average cost of workers’ compensation insurance for food businesses, including sandwich shops, is about $100 per month, or $1,200 annually. The cost of a policy varies significantly depending on the state you live in, your business operations, and the number of employees you have.
Workers’ compensation insurance is required in almost every state for sandwich businesses with employees. This coverage helps pay medical costs and lost income for employees who are injured on the job. Most policies include employer’s liability insurance, which protects deli business owners against lawsuits related to workplace injuries.
Because health insurance plans can deny claims and medical bills for injuries related to your job, workers' compensation coverage is also recommended for sole proprietors.
The cost of workers' comp depends on several factors, primarily the size of your staff and their occupational risks. You can save money on workers' comp coverage by classifying your workers correctly and implementing a risk management plan to minimize work-related injuries.
Liquor liability insurance
The average cost of a liquor liability insurance policy for a food and beverage business like a deli is $64 per month, or $769 annually.
This type of insurance protects sandwich shops from liability claims related to serving alcohol. In some jurisdictions, your deli might need liquor liability coverage in order to obtain a liquor license.
This is the average liquor liability policy for food business owners who buy from Insureon:
Insurance premium: $64 per month
Policy limit: $1 million per occurrence, $2 million aggregate
What's more, many states have dram shop laws that hold a business liable for any damages caused by intoxicated customers who were served by your staff. This can make this coverage all the more important to protect businesses against the expensive legal fees and other financial losses from an incident.
Learn how to save money on your policy, which coverage options to choose, and how liquor liability costs are calculated.
Commercial auto insurance
The average cost of a commercial auto policy for delis and other food service businesses is $222 per month for food service businesses like delis, or $2,669 annually.
This insurance covers medical expenses related to injuries and property damage costs if you or an employee driving your sandwich shop delivery vehicle is held liable for an accident. It also covers vehicle theft, vandalism, and damage caused by weather.
Most states require this type of insurance for vehicles owned by a deli or sandwich shop. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.
The cost of commercial car insurance depends on several factors, including the policy limits you choose, claims history, the number and value of your vehicles, and the driving records of anyone permitted to drive. Learn how insurers calculate your premium and how to save money on commercial auto coverage.
Cyber insurance
Small food businesses pay an average of $129 per month, or $1,552 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.
Cyber insurance helps food businesses recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other costs necessitated by state data breach laws.
The cost of cyber insurance depends on the amount of personal information handled by your sandwich shop, such as customer credit card numbers, along with the number of employees who can access that information.
How are deli and sandwich shop costs calculated?
Deli and sandwich shop business insurance coverage costs are determined by several factors. While underwriting your policy, insurance companies will consider the following when calculating insurance rates:
- The types of food and beverages served: Delicatessens may see elevated premiums if they offer higher-risk products or services, such as alcoholic beverages, compared to sandwich shops that only serve food.
- Business property and deli equipment: Sandwich shops that work with higher-value coffee-making equipment are likely to see higher premiums. Also, any equipment that is frequently used could cost more to insure than items that are used less often.
- Location: If your deli operates in an area that is more prone to natural disasters, increased foot traffic, or high crime rates, you may have to pay higher insurance costs than a sandwich shop located in an area where these factors are less present.
- Number of employees: If your delicatessen has several employees on staff, you could see increased insurance costs, as there are more opportunities for kitchen accidents to happen or for potential damage to occur to a customer's property.
- Business size and revenue: Insurance companies may assume a deli that is making more money will also face increased customer exposure, which can generate higher premiums.
- Coverage limits and deductibles: Sandwich shops with higher coverage limits and lower deductibles on their insurance policies will typically see their premium costs increase, while lower limits and a higher deductible can help keep their rates lower.
- Type of business operation: A self-employed sandwich shop owner serving from a small food trailer may not have to pay as much for insurance as a larger deli with multiple employees.
- Types of insurance coverage purchased: Some policies are required for delis to obtain licensing or certifications. These required policies often are needed to cover more expensive accidents and lawsuits, and tend to cost more than basic coverages.
- Claims history: A deli owner with a lengthy list of previous insurance claims will likely pay more for insurance than a sandwich business owner with no claims history.
How do I get deli and sandwich shop insurance?
Insureon can help delis, sandwich shops, restaurants, bakeries, cafes, and other food businesses find affordable insurance coverage, whether you work independently or hire employees.
To get started, all you need is your business information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. Then, you can buy a policy online with Insureon in three easy steps:
- Fill out a free online application with details about your business.
- Compare free quotes from top-rated U.S. insurance carriers.
- Select a policy and pay the premium to begin coverage.
Our licensed insurance agents are available to answer questions about your deli insurance costs, state insurance requirements, and the best types of coverage for your specific insurance needs.
Once you've bought the sandwich shop insurance policies you need, you can download a certificate of insurance (COI) for proof of coverage. Most small business owners can get insured within 24 hours of applying for quotes.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the deli and sandwich shop field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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