Liability Insurance for Food Vendors: What $1M Really Buys You

Most event organizers demand a million-dollar policy. Most vendors don’t understand what’s actually covered. Here’s the breakdown.

Walk into any Texas event coordinator’s office and you’ll hear the same sentence: ‘We need a Certificate of Insurance with $1,000,000 general liability and the venue named as additional insured.’ Most vendors nod, write the check, and never read the policy. That’s a mistake.

General liability vs. product liability

A standard $1M general liability policy covers third-party bodily injury and property damage — a customer slips on grease near your truck, a kid burns a hand on the serving window. It does not automatically cover foodborne illness claims. For that you need product liability coverage, often bundled but worth confirming line-by-line.

What a real Texas policy costs

Expect $450–$900/year for $1M/$2M general + product liability through carriers like FLIP (Food Liability Insurance Program), Insure My Food Truck, or Thimble. If a broker quotes you $2,000+ for a basic policy, get a second quote.

Additional insured certificates

Every venue, festival, and farmer’s market will ask to be named as an ‘additional insured’ on a Certificate of Insurance (COI). Most carriers issue these free and instantly through their portal. Build a habit: when you book an event, request the COI the same day.

What’s almost never covered

• Damage to your own truck or equipment (that’s commercial auto + inland marine)
• Employee injuries (that’s workers’ comp)
• Liquor liability if you serve alcohol
• Cyber/data breaches from POS systems

TXFVA recommends a minimum stack of: $1M general + product liability, commercial auto on the vehicle, and workers’ comp if you have any non-owner help. Anything less and you’re one bad day from losing the business.