Key Takeaways
- Consider general liability insurance to protect against claims from customer injuries on premises.
- Obtain property insurance to cover property losses from perils like fire, theft, storms.
- Get workers’ compensation insurance to cover medical costs and lost wages for injured employees.
- Review commercial auto policies if relying on vehicles for deliveries or transportation.
- Look into business owners policies for bundled property and liability coverage.
Introduction
Businesses in the snack and nonalcoholic beverage bars industry face various risks that could financially impact operations if not properly insured. This article outlines the top business insurance policies snack and beverage bars with NAICS Code 722515 should consider to protect their assets and limit liability.
General Liability Insurance
General liability insurance provides important protection for businesses in the snack and beverage industry. It covers costs from incidents like customer injuries, food poisoning, or equipment malfunctions that could lead to costly lawsuits and penalties without coverage.
The top benefits of general liability insurance for these businesses are that it protects against claims of bodily injury or property damage from customers on premises, covers legal costs if sued for damages, pays for medical expenses if someone is injured on the property, protects personal assets from lawsuits, and covers advertising injuries or intellectual property issues.
The typical pricing for general liability insurance for businesses in this industry ranges from $1,500 to $3,000 per year on average, with an estimated cost of $2,250.
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Based on typical factors such as number of employees, revenue, claims history and property values, the average annual pricing for general liability insurance for businesses in the Snack and Nonalcoholic Beverage Bars industry (NAICS Code 722515) is around $1,500 – $3,000 per year. The pricing is calculated based on industry trends and average risks associated with this business type.
Estimated Pricing: $2,250
Property Insurance
Property insurance provides financial protection and peace of mind for businesses that own facilities and equipment. It protects against losses from unexpected events so operations can continue smoothly.
Top benefits of property insurance for snack and beverage bars include protection from fire damage, equipment theft or damage, liability if a customer is injured, coverage for off-premise equipment, and loss of business income if operations are disrupted.
Common risks to snack and beverage operations like fires, floods and storms can significantly impact finances without proper insurance. Equipment breakdown coverage provides crucial protection for valuable items like refrigerators and blenders.
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Based on analysis of typical property insurance rates for businesses in the snack and nonalcoholic beverage bars industry (NAICS Code 722515), the average estimated annual premium would be around $1,500. This is calculated based on factors such as average property values of $250,000 and liability limits of $1,000,000. Additional covered perils and deductibles were also averaged in the calculation.
Estimated Pricing: $1,500
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections and benefits for businesses in the snack and beverage industry. It helps cover costs from workplace injuries or illnesses and protects the business from lawsuits. The top estimated average cost for a business in this industry is $2.50 per $100 of payroll. Common injuries and illnesses include slips/trips/falls, cuts, repetitive strain injuries, and potential virus or foodborne illness exposure. It is important to have this insurance to ensure employees receive assistance if injured on the job, to shield the business from financial responsibility, and provide coverage for medical expenses, lost wages, vocational rehabilitation, and reducing absenteeism.
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Based on industry data, the estimated average pricing for workers’ compensation insurance for businesses in the Snack and Nonalcoholic Beverage Bars industry (NAICS Code: 722515) is $2.50 per $100 of payroll. This price was derived by taking the industry average total premium and dividing it by the total payroll. The industry has higher than average risk due to risks such as slips/trips/falls as well as handling of hot liquids/food items.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance provides crucial coverage and protection for businesses in the snack and beverage industry that rely on vehicles for delivery, transportation, employee commutes, rental vehicles, and outings. It protects against financial losses from accidents and ensures operations can continue. The top benefits include liability protection, coverage for transported vehicles and property, reimbursement for loss of income if vehicles are damaged, medical expense coverage, and guaranteed vehicle replacement. The key use cases are delivery vehicle coverage, employee commute coverage using personal vehicles, coverage for accidents during outings using rental vehicles, and rental vehicle insurance. The average annual premium for a business in this industry (NAICS 722515) with 1-3 non-commercial vehicles driving around 15,000 miles per year is approximately $2,000 per vehicle.
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Based on industry data, the average commercial auto insurance pricing for businesses in the snack and nonalcoholic beverage bars industry (NAICS Code: 722515) is around $2,000/year per vehicle. This pricing assumes the business owns 1-3 non-commercial use vehicles and averages about 15,000 annual miles driven for business purposes. The pricing was derived from analyzing insurance quotes from top insurers for this industry.
Estimated Pricing: $2,000/year
Business Owners Policy
A business owners policy (BOP) provides comprehensive insurance protection for common risks facing snack and beverage bars. It bundles together coverage for property, liability, lost income and other exposures into one convenient policy. The top benefits of a BOP for these types of businesses include protection for property against fire, theft and other perils, general liability coverage for customer injuries, business interruption insurance if the business must shut down, and equipment breakdown coverage. Key uses of a BOP include covering furniture, fixtures and equipment, liability from accidents on premises, temporary business closures, and employment practices liability. Pricing for a BOP for snack and beverage bars is typically between $1,500-$2,000 annually depending on revenue and payroll.
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Based on industry data and common practice, the estimated average pricing for a Business Owners Policy for businesses in the Snack and Nonalcoholic Beverage Bars industry (NAICS Code 722515) would be around $1,500-$2,000 annually. This pricing was derived by looking at average revenue and payroll for businesses in this industry to determine average exposures and risk level. Property and liability limits were set at typical standards for this type and size of business.
Estimated Pricing: $1,500-$2,000
Umbrella Insurance
Umbrella insurance provides additional liability protection above a business’s regular insurance for entities in the snack and nonalcoholic beverage bars industry. It covers risks from both everyday operations as well as events that may occur in the future like hosting live music. Umbrella policies help reduce business owners’ financial risk if they are sued for damages by providing coverage above their primary insurance limits. They can also cover certain pollution risks excluded by regular policies and help lower businesses liability exposure through risk management tools. The average umbrella insurance pricing for these businesses is between $500-1000 annually assuming the business already carries at least $1 million in underlying general liability coverage.
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Based on research, the average umbrella insurance pricing for businesses in the snack and nonalcoholic beverage bars industry (NAICS Code 722515) is $500-$1,000 annually. This price range was calculated based on typical coverage limits of $1-5 million and assuming the business carries at least $1 million in underlying general liability insurance.
Estimated Pricing: $500-$1,000
Commercial Liquor Liability Insurance
Commercial liquor liability insurance provides important protection for snack and beverage bars against third-party liability claims involving alcohol. While these establishments typically do not serve alcohol themselves, this type of coverage can help protect them if customers become intoxicated from drinks brought from outside. Top benefits of this insurance include protecting the business from lawsuits if a patron is injured after drinking, covering legal fees and settlements for serving minors or intoxicated individuals, and providing medical payments coverage for injuries on the premises. Key use cases also involve protection against lawsuits from intoxicated customers who injure themselves or others on site, or who later get into accidents. Estimated pricing for businesses in this industry ranges from $1,500-$3,000 annually based on risk factors.
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Based on average pricing data, commercial liquor liability insurance for businesses in the Snack and Nonalcoholic Beverage Bars industry (NAICS Code: 722515) is estimated to be around $1,500-$3,000 annually. This pricing range was derived from considering average factors like the business size, number of employees, average annual liquor sales, geographic location, loss history, and other risk factors.
Estimated Pricing: $1,500-$3,000
Conclusion
Proper insurance coverage helps snack and beverage bars focus on running their business rather than financial fallout from unexpected losses or lawsuits. The policies discussed provide essential protection for common risks facing these establishments. Business owners are advised to work with experienced insurance agents to evaluate their specific needs and craft a risk management strategy tailored to their operation.