Food & Beverage Insurance

For food manufacturers, distributors, restaurant operators, and any F&B business using third-party or gig economy drivers for delivery

Most F&B operators have auto liability exposure they haven’t fully mapped. A manufacturer running its own fleet is the obvious case. Less obvious is the restaurant group whose delivery drivers use personal vehicles, or the brand fulfilling online orders through gig economy platforms. In both situations, if there’s an accident during a delivery and the driver’s personal auto policy doesn’t respond, the liability travels back to the business. That’s the hired and non-owned auto problem, and it’s genuinely underinsured across the industry. Moving product through the distribution chain creates a separate but related set of exposures. Owned trucks, contracted carriers, temperature-sensitive freight, and cargo claims when a load is damaged or lost all require different coverage responses. The two conversations, fleet/delivery auto and cargo logistics, often get siloed. They shouldn’t be.

Coverage options:
•    Cargo / inland marine: Coverage for product in transit, including temperature-sensitive goods
•    Commercial auto / hired & non-owned auto: Owned fleet, employee-owned vehicles used for business, and third-party gig delivery platforms
•    Motor truck cargo / freight liability: Product in transit through the distribution chain, including temperature-controlled freight
•    General liability: Bodily injury and property damage that arises during delivery, regardless of who owns the vehicle
•    Contingent cargo:  Coverage that responds when a contracted carrier’s insurance is insufficient or doesn’t apply
 

For operators relying on POS systems, digital ordering, supply chain software, and connected manufacturing

F&B runs on technology now in ways it didn't ten years ago. POS platforms, loyalty programs, online ordering systems, ERP software managing supply chain procurement, and connected equipment on the plant floor. When any of those fail because of a ransomware event or vendor outage, the revenue impact is immediate and often underinsured.
Cyber coverage in F&B needs to be framed around operational disruption, not just data breach. The notification cost matters less to a restaurant operator than the business income and reputational impact.

The financial risk bucket covers the M&A activity that has reshaped F&B over the past several years. Private equity is deeply embedded in the sector through platform builds, add-on acquisitions, and eventual exits. The transaction insurance products that matter here are different from operational coverage, and the buyer is typically a CFO or deal counsel rather than a risk manager.

Coverage options:
•    Cyber / business interruption: Operational disruption from ransomware, system outages, and third-party vendor failures
•    Tech E&O / privacy: Technology errors and data privacy liability
•    Representations & warranties insurance (RWI):  Buy-side and sell-side RWI for M&A transactions
•    Tax liability insurance: Known and contingent tax exposure in deal structures
•    D&O / crime: Management liability and employee dishonesty coverage
 

For food service operators, manufacturers, and large employers across the supply chain

F&B is a labor-intensive industry with genuine physical injury exposure. Slip-and-fall, repetitive motion, and equipment-related injuries are frequent in both manufacturing and food service. High turnover creates onboarding risk. Multi-state operations create wage and hour complexity. Workers' compensation is often the largest single premium line for a restaurant group or food processor. The opportunity is in data: injury frequency, return-to-work programs, and loss development trends that support a better program structure over time.

Coverage options:
•    Workers' compensation: State-mandated coverage with program design focus on frequency and total cost of risk
•    General liability: Customer and third-party injury exposure in retail and food service environments
•    Employment practices liability:  Wage and hour, discrimination, wrongful termination exposure
•    Captive / large deductible programs: For employers with sufficient scale and data to take on retained loss
 

For beverage and spirits producers, distributors, on-premise accounts, and cannabis operators
Beverage alcohol and cannabis require coverage that standard commercial markets either exclude or price poorly. Liquor liability is a real exposure for producers, distributors, and on-premise operators alike. Cannabis and CBD add regulatory complexity that most carriers haven't worked through cleanly. Distribution is a complicating factor in both categories. Liability that attaches at the point of sale is different from what attaches at production or during transport, and the coverage needs to track where the exposure actually lives.

Coverage options:
•    Liquor liability: Third-party claims arising from alcohol sales or service
•    Product liability: Manufacturing and distribution liability for beverage and cannabis products
•    General liability / umbrella: Premises and operations coverage for producers and on-premise operators
•    Cargo / stock throughput: Product in transit, including temperature-controlled and high-value shipments
•    Trade credit: Receivables protection for distributors and producers
 

For multi-unit operators, regional chains, food manufacturers, and franchise systems

A single weather event that hits multiple locations at the same time looks very different from the way a standard property program is structured. Most carriers think about per-location limits. Multi-unit F&B operators need to think about aggregate exposure across a footprint. For manufacturers with two or three plants, concentration risk is the problem. For a 200-unit QSR group, it might be storm or flood events across a metro. Either way, the program design question matters more than the coverage form.

Coverage options:
•    Property: Building, equipment, inventory, and leasehold improvements
•    Business interruption / extra expense: Income replacement and added costs following covered property damage
•    Captive / ART Solutions: Self-insurance structures and alternative risk transfer for large, stable property programs
•    Surety / collateral solutions: Collateral management tied to captive or large deductible programs
 

For food manufacturers, distributors, co-packers, and importers
 

A contaminated ingredient is simultaneously a supply chain event, a recall trigger, and a business interruption loss. These risks don't separate cleanly, so neither should the coverage conversation. One supplier failure can halt production lines, void contracts with downstream buyers, and generate recall costs that exceed what most property programs contemplate. Trade credit exposure accelerates the financial damage when counterparties can't perform.

Coverage options:
•    Product recall: First-party costs, third-party claims, regulatory defense, and supply chain notification
•    Cargo / stock throughput: Product in transit from supplier through to end customer
•    Business interruption:   Revenue replacement when a contamination or recall event disrupts operations
•    Trade Credit: Protection against supplier or buyer default that compounds the loss
•    General liability / products liability: Third-party bodily injury and property damage claims arising from product failures
 

Howden’s expansion into U.S. markets is underpinned by the recruitment of top executives from the sector. Our growing team is led and staffed by dedicated specialists with decades of experience of in-house risk leadership for the grocery, retail, food service, and manufacturing sectors.

From first notice to final resolution, we advocate for your interests during a claim, ensuring fair interpretation of policy language and protecting your organization. The goal is a simplified process and timely outcomes wherever you operate. 

Our food & beverage practice is built on senior brokers from the U.S. insurance sector and is backed by Howden’s global business and world-class partner network. We work across domestic, London, and Bermuda markets – and beyond – to secure precise coverage aligned to your operating needs and your risk appetite.

Protecting food & beverage brands means understanding risk and mitigating it before it becomes an issue. Our specialist teams collaborate closely, using advanced risk management technology and drawing on networks of experts to help clients prevent, respond to, and mitigate risk.