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Food Liability Insurance Program Review 2024 (FLIP Insurance)

Running a small food business comes with its share of risks – from third-party injury and property damage claims to loss or damage to business properties. As an individual or company running a food vending business either by selling or distributing such products, you need to protect your business and customers from these unforeseen risks.

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The Food Liability Insurance Program (FLIP) is a well-known national food business insurance company that can protect you from these uncertainties.

In addition, the company offers the most affordable food liability insurance according to a study by Investopedia.

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With as low as $25, customers can obtain a FLIP insurance policy for their small food businesses. Cover includes commercial kitchens, food trucks, bakers, and many more.

While FLIP can make insurance easy for small and new start-ups, it is not ideal for businesses where their gross annual sales exceed $500,000.

Here’s all you should know about FLIP insurance, including their policy costs, coverage limits, and policy exclusions!

[Need pay-as-you-go restaurant insurance? Check out our review of Rainbow Restaurant Insurance]

About FLIP insurance

The Food Liability Insurance Program is an insurance company that provides coverage solutions to businesses and individuals who are in the food business sphere. Their small-scale operations are designed to specifically cater to the challenges of small businesses.

FLIP is managed by Veracity Insurance Solutions, and its policies are underwritten by The Great American Insurance Group.

State availability

FLIP insurance is licensed and operates in all 50 states, including Washington DC.

FLIP insurance coverage

FLIP policies provide coverage for up to 365 days. This includes general liability along with free and unlimited additional insureds which allows you to add any landlord or event planner should they require you to extend your insurance protection to them. 

You can also add optional coverage to your policy like:

  • Tools and equipment coverage
  • Excess liability
  • Trailer endorsement
  • Cyber liability
  • Professional liability

FLIP’s standard annual food policy has the following general liability coverage benefits and limits:

  • General liability cover (up to $2,000,000): This is the highest they will pay for claims arising from injuries caused to third parties in your business premises.
  • Products-Completed Operations (up to $1,000,000): This is the maximum payout you can receive for damages or losses to customers caused by products you have sold to them or operations you have completed.
  • Personal and Advertising Injury ($1,000,000 max): If legal action is taken against your business typically because of non-personal injuries like an invasion of privacy, business slander, malicious prosecution, and advertisement damage like copyright infringement – the aggregate FLIP will pay is $1 million.
  • General each occurrence (up to $1,000,000): This is the highest amount you will receive for a single incident that occurs in your business.
  • Damage to premises rented to you (up to $300,000): If your business premises are affected by a covered loss like a fire outbreak, the max payout for such claims is $300,000.
  • No deductible for claims made under general liability.

Optional coverage limits

Add-on cover includes business property / inland marine coverage for your equipment, inventories, and movables like trailers.

Claim benefits for add-ons start at $5,000 and up to $10,000. The medical expense limit is capped at $5,000 including a $250 deductible per claim.

They are sub-categorized into:

  • Tools and equipment coverage (starting at $8.25 per month): This optional cover will save you from additional expenses if your business tools and equipment are damaged or stolen.
  • Trailer endorsement coverage (starting at $12.50 per month): This coverage is important as it extends your general liability protection to include liability and physical damage protection to your trailers parked on-premises.
  • Professional liability coverage (starting at $10.42 per month): Also known as errors and omissions insurance, this add-on will help mitigate the damage you caused to people out of omissions, errors, or negligence while carrying out your professional duty.
  • Excess liability coverage (starting at $41.67 per month): This option will extend coverage beyond the limits of your policy. The policy rate starts at $41.67 per month.

[Need car insurance for your ridesharing business? Check out our review on Toggle Car Insurance]

More Additional Coverage:

Cyber Liability

FLIP cyber liability ensures your business recovers from cyber-related attacks like security breaches, ransomware, and stolen data files. This cover will enable you to get compensation for the restoration of lost data and also meet ransomware demands.

This policy is essential if your business stores sensitive and personal customer information online.

The furthest you will be reimbursed for claims is $100,000.

Below are the benefit limits:

BenefitsLimits
Liability coverage$100,000
Fines and penalties from regulators $100,000
Privacy and network security$100,000
Ransomware payment$10,000
Cyber Deception$10,000
Deductible on claims$1,000

FLIP Liquor Liability Coverage

In many states, including Arizona, Michigan, and Utah, liquor liability is a must-have if you run or operate a restaurant that offers liquor, beer, wine, or other alcoholic beverages.

FLIP liquor policies are tailored and include optional extras. The basic liquor policy starts at $105 and up to $429 for the highest plan.

Liquor policies are available in Platinum, Gold, Silver, and Bronze packages.

Here are all four policy benefits and limits, including their extras:

Note that price and coverage options vary by state!

Liquor Liability Event Policy (Bronze)

This policy starts at $105 per event and is closely tied with its Silver counterpart.

Coverage includes:

  • $300,000 in liquor liability coverage
  • Coverage for up to 3 consecutive days
  • Free & unlimited additional insureds

General Liability + Liquor Liability Event Policy (Silver)

As the name implies, this policy is ideal for short-term event alcohol coverage with rates starting at $134 per event.

Coverage includes:

  • General liability coverage limits up to $2,000,00 and $1,000,000 per case
  • Liquor liability coverage limits of $300,000
  • Up to $300,000 benefit limit for damage to rented premises
  • Coverage up to 3 consecutive days
  • Free & unlimited additional insureds

Liquor Liability Annual Policy (Gold)

Liquor Liability annual policy is best for businesses that only need independent annual coverage for alcohol-related mishaps. The price for this plan begins at $200.

Coverage includes:

  • Liquor liability coverage with benefit limits of $1,000,000 per case and $2,000,000 max
  • Free & unlimited additional insureds
  • Annual policy coverage

Optional

  • Assault and battery coverage ($25,000 max)

General Liability + Liquor Liability Annual Policy (Platinum)

Upon selection, this policy includes both general liability and liquor liability. It is suitable for food truckers, concessionaires, or caterers, who serve alcohol and food – with fees starting from $429 per year.

Coverage includes:

  • General Liability coverage with benefit limits of $1,000,000 per case and $2,000,000 max
  • $300,000 in liquor liability coverage
  • Includes up to $10,000 coverage for tools, equipment, and inventory
  • Free & unlimited additional insureds
  • Annual policy coverage

Optional

  • Assault and battery coverage ($25,000 max)
  • Trailer endorsement
  • Professional liability
  • Inland Marine

Workers Compensation

If your business includes employees, it is necessary to include this policy for them. Most states require mandatory workers compensation – whether part-time, contractors, or full-time workers.

Workers compensation will ensure your employees receive benefits if they fall sick or get injured while on duty. This policy can be easily bundled with your general liability insurance.

Below are the coverage limits for this policy: Note that this policy will vary by state.

  • Injuries to the body by a disease (up to $1,000,000): The aggregate payment for injuries caused to your employees due to disease infection is $1 million
  • Bodily injury by an accident (up to $1,000,000): If an employee is injured by an accident, the most FLIP will pay for each is $1 million.

Food Businesses covered

  • Food Trucks
  • Food Trailers
  • Food Festivals
  • Personal Chefs
  • Restaurants
  • Liquor Liability
  • Dram Shop
  • Bartenders
  • Bakers
  • Caterers
  • Commercial Kitchens
  • Cottage Food Law
  • Food Carts

If your business is not listed above, you can simply reach out to FLIP for a customized policy tailored for your business.

What is not covered by FLIP insurance

While FLIP covers a great deal of business and events, there are some things that won’t be covered by its food liability policy.

Below are some exclusions to the policy:

  • Owner or operator of a food court
  • Alcoholic beverages or products; including their sale, or serving
  • Health Coaching
  • Energy drinks
  • Importers – seafood, meat, and poultry
  • Nutrition Consulting
  • Tobacco-related products including e-cigarettes and smokeless products
  • Topical products including soaps, lotions, and bath products
  • Products requiring a prescription
  • Baby food

Discounts

FLIP does not advertise discounts on its website. You can speak with an agent to find out more about that.

FLIP reviews and ratings

FLIP has received a good number of positive feedback from customers. They currently have a 4.8-star rating out of 5 on Google reviews.

Their policies are backed by the Great American Insurance Company who are A+ rated by A.M. Best.

Pros and Cons

Pros

  • Affordable policies
  • No deductible on general liability claims
  • Coverage for numerous food business

Cons

  • Policies can only be obtained online
  • No refunds after policy purchase
  • Not suitable for businesses that rack in more than $500,000 in gross annual sales

How to buy a FLIP insurance policy

This can be done online by visiting their website. Proceed by selecting your business type, and then follow the subsequent screen demand to customize the policy according to your business needs.

Frequently Asked Questions (FAQs)

What is the cost of FLIP insurance?

The monthly cost of FLIP policy is $25.92, and 299 annually.

These figures are just averages and could increase depending on the several factors listed below:

  • Your location
  • Gross annual sales from your business
  • Coverages included
  • Coverage limits selected

Can I get a refund if I decide to cancel my policy?

According to FLIP, all their policies are 100% fully earned – meaning you won’t get a refund after purchasing a policy.

How much food liability insurance do I need?

The amount of coverage needed will depend on the size of your business, the type of operations, and the potential risks involved.

Is food liability insurance required by law?

There is no legal requirement for food liability insurance. However, most food industries need general liability insurance to operate.

Policies like workers compensation and liquor liability are however required in most states.

Is FLIP a valid company?

Yes, The Food Liability Insurance Program is a good insurance provider. They are backed by the Great American Insurance Group, and managed by Veracity Insurance.