FLIP Report Reveals Economic and Claims Trends in Food Industry
Veracity Insurance Solutions LLC has released its first “Food Industry Economic and Trend Outlook Report,” providing valuable insights into economic trends and liability insurance statistics for small and mid-sized food industry businesses.
Veracity, a Utah-based wholesale broker, offers the Food Liability Insurance Program (FLIP), which is designed for specific needs of the food vending, food truck, and food distributors industries nationwide.
The report reveals that 64% of FLIP’s client operators anticipate their businesses will grow in 2024, and consumer spending on out-of-home food has seen a 6% YoY increase.
Liability insurance claims processed in 2023 saw a 2.3% increase compared to 2022, the report noted. The most prevalent claim was an auto or trailer incidents, representing 28% of all claims in 2023. The next most prevalent claims were: accident-causing third-party damage (18%), theft (13%), and equipment failure or food spoilage (13%).
The average payout for all claims filed was $4,632, with the highest concentrations of claims in California, Texas, and Florida.
In 2023, 65% of food business owners felt the impact of higher food costs, despite a 5.7% decrease in wholesale food prices from the beginning of the year. Looking ahead, 91% of operators plan to raise prices in 2024, and 69% do not plan on going cashless.
“We look to not only be an insurance vendor to our customers but a partner in their success. We hope our insured will find the information valuable in planning and benchmarking their business against industry-wide and segmented trends as they look to grow,” said Daryle Stafford, CEO of Veracity Insurance. “We decided to compile this report in the hopes that our insured will find the information valuable in planning and benchmarking their business against industry-wide and segmented trends as they look to grow.”
The report also highlighted 2023 growth in market size for each category analyzed, with food trucks leading at 9.9%, followed by caterers at 7%, and farmers market vendors at 7%. The full report can be accessed here. &