Insurance 101 for Independent Grocery Suppliers

So you’ve created the most innovative new product, designed beautiful packaging and perfected the recipe – but you still need one important thing before your product can hit the shelves: Insurance.  As a grocery vendor, liability insurance establishes an essential trust between you and the customer. It also ensures that everyone in the supply chain is protected if anything should go wrong, which is why every retailer will require you to have coverage of some sort. 

Unfortunately, the insurance industry wasn’t set up for small businesses and independent vendors. It can be difficult to understand what you’re actually required to have, and even harder to find it at an affordable price. Bunker was set up to solve this problem. This quick Liability Insurance 101 will make you an expert on what you need, why you need it, and where to find it.


What do you need?

The most common coverages for Independent Grocery Suppliers are General Liability (including product liability), Spoilage, and Inventory Coverage. You’ll also need Proof of Insurance readily available to show any retailers before they’ll sell your products. Let’s dive into those a little more closely:


General Liability

A standard General Liability policy protects against any physical damages to a person or their property. For example, if a customer had an allergic reaction to something in your product, General Liability would cover any legal action or medical bills. 

Read What is General Liability Insurance to learn more!


Product Liability

Product liability is an add on to General Liability, which covers you if the damages resulted from a defect in the product itself, like a stray bit of packaging falling into the food during production. 



True to its name, this endorsements protects against any losses you may suffer if a power outage, electrical problem, or other uncontrollable event causes your product to spoil. 


Inventory Coverage

Similar to spoilage, Inventory Coverage protects against lost inventory from uncontrollable circumstances. This can include events like fires, robberies or water damage, often covering the cost of renting a replacement storage space for any salvageable inventory. 


Proof of Insurance

When you purchase insurance, you’ll be provided with a Certificate of Insurance. While this normally comes in PDF form, meaning you’ll need to request a new one for each retailer, there are also Live COIs available through Bunker, which allow you to share proof of insurance online with unlimited parties.


How do I get it?

Step 1: Click “Start Quoting,” Answer a few questions about your business and create an account (so that you can access your Live COI)

Step 2: We’ll send you a product application with a few more questions – check your inbox for an email from!

Step 3: Our advisors will reach out with a quote within about 1 day.

Are You a RangeMe Supplier?

Bunker has partnered with RangeMe to provide liability insurance quickly and easily to anyone in the marketplace. Click below to get the RangeMe Verified Supplier policy!

Bunker is only licensed to sell insurance to businesses registered in the United States. To register your business in the US, visit

If you have any questions about your requirements, or which coverages would be beneficial to your business, Live Chat with an insurance advisor at!

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