Many Kitchen Hosts on Syzl require that Food Makers have (and provide proof of) $2-5 million in Commercial General Liability (CGL) Insurance to book and use their kitchen. Likewise, Syzl strongly recommends that you obtain insurance for yourself/your business so that you are protected in the event that you are found legally responsible for injuries caused to another person or damage to their property.
Syzl has partnered with Zensurance to recommend various types of insurance coverage specific to small businesses in the food industry. They have specialized experience with this category and will help you tailor a policy to work for your business.
For help on how to get a custom insurance quote from Zensurance, check out this guide: Getting a Quote for Commercial Liability Insurance (featuring Zensurance)
Below is detailed information about the different kinds of insurance provided by Zensurance. If you have questions specific to any of this information, please reach out to Zensurance on their website.
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What is Commercial General Liability Insurance?
Commercial General Liability (CGL) is an insurance policy that provides financial coverage for claims of third-party bodily injury and property damage caused by your business resulting from negligence or unexpected accidents.
Should your business be sued, CGL insurance typically covers compensatory damages awarded against you and any legal defence costs, regardless of the lawsuit’s outcome.
Example:
Problem: You’re a food vendor that sells hot snacks at many events around the city. While you’re at an event, your soup warmer fell off the booth and scalded a customer.
Outcome: Your Commercial General Liability Insurance may cover the legal fees and medical bills totalling $25,000.
What is Product Liability Insurance?
Product Liability coverage is essential for vendors that manufacture, distribute, or sell any products, including food. This type of coverage provides financial protection against claims of alleged property damage or bodily injury that was directly caused by your product.
Damages covered by product liability are usually the result of a design, manufacturing, or marketing defect, such as an incorrect label or a lack of safety warnings. A food poisoning incidence or an allergic reaction due to your food can be covered by Product Liability Insurance.
Example:
Problem: You own a small farm and sell fruit jams at a local farmers’ market every weekend. A customer alleges that your raspberry jam must have been contaminated as they had an allergic reaction to it.
Outcome: Your customer successfully sues you for bodily injury. Your Product Liability Insurance may cover the cost of medical and legal fees totalling $5,000.
What is Tenant Legal Liability Insurance?
Tenant Legal Liability Insurance, also known as Commercial Tenant Insurance, is a form of Commercial General Liability Insurance that protects your business against the day-to-day risks of running a business within a leased space.
Tenant Legal Liability Insurance typically covers the lawsuits and payments of claims related to third-party bodily injury (e.g., slip-and-fall) or third-party property damage. Before you rent a space, it’s common for a landlord to require Tenant Legal Liability Insurance, so they’re indemnified if you (or one of your colleagues) cause any damage to their premises.
What does it cover?
Tenant Legal Liability Insurance typically includes coverage for legal costs and damages related to the following coverage areas:
- Bodily Injury Liability: Injuries or damage to a third party resulting from your business operations.
- Third-party property damage: Costs to repair or replace the property of a third party, including damage to the landlord’s premises and property.
- Personal and Advertising Injury Liability: Allegations of defamation, libel, slander, or false advertising due to your services.
How much does it all cost?
As every business is different, the following factors are typically taken into consideration when determining the cost of your premium:
- Business Size and Location
- Annual and Projected Gross Revenue
- Number of Employees
- Previous Insurance Claims