FOOD LIABILITY INSURANCE PROGRAM (FLIP) RELEASES 2024 ECONOMIC OUTLOOK REPORT HIGHLIGHTING CATEGORY GROWTH AND INSURANCE TRENDS

PR Newswire

Leading Food Business Insurer Releases Statistical Analysis of Market Trends Related to Insuring Small to Mid-Sized Business in the Food Category

NEW YORK, March 4, 2024 /PRNewswire/ -- Food Liability Insurance Program (FLIP), a national insurance program designed for small to mid-sized operators in the food industry, released today its inaugural "Food Industry Economic and Trend Outlook Report" which includes proprietary statistics on insurance trends in the category, survey results from operators insured by FLIP, and general economic statistics on the category as a whole. The report includes a market-wide analysis of out-of-home food businesses, excluding restaurants and grocers, and segment-specific insights of bakers, mobile bartenders, caterers, event-based businesses such as food truck and farmers market vendors, personal chefs, and home (cottage) food businesses. Segments of the report are below, and the entire report can be accessed online here.

"...our findings include that 64% of our client operators believe their businesses will grow in 2024..."

"We look to not only be an insurance vendor to our customers but a partner in their success," said Daryle Stafford, CEO of Veracity Insurance, the parent company to FLIP. "As such, 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. Some inspiring notes from our findings include that 64% of our client operators believe their businesses will grow in 2024 and that consumers are spending more on out-of-home food than ever before (a 6% increase YoY). We look forward to continuing to provide actionable content for our customers in the months ahead aligning with our commitment of being a true partner in their businesses."

FLIP Statistical Highlights from the report include:

An analysis of insurance claims processed in 2023 compared to 2022 shows an increase of 2.3%. The most prevalent claim type in 2023 was an Auto or Trailer Incident, which represented 28% of all claims. The following three claim types were Accident-Causing Third-Party Damage (18%), Theft (13%), and Equipment Failure of Food Spoilage (13%) respectively.
The average payout for all claims filed was $4,632.
California, Texas, and Florida represented the highest concentrations of claims throughout the United States.
Food Business Owners felt the impact of higher food costs in 2023, with 65% of those surveyed indicating rising costs impacted their net income, although data suggests that from the beginning of 2023 to the end, wholesale food prices decreased 5.7%. Less than 3% of operators surveyed believe costs will continue to go down.
Operators are planning to continue to raise prices in 2024, with 91% reporting they believe ticket sizes will go up in 2024.
Operators are still relying on cash as 69% indicated they do not plan on going cashless in 2024, with 30% planning to do so.
56% of food operators plan to spend similar amounts on marketing in 2024 as they did in 2023, with 34% planning to increase their spend.
Overall, each category analyzed is growing in market size YoY with Food Trucks being the most (9.9%), followed by Caterers (7.7%), Farmers Market Vendors (7.0%), Home-Based (cottage) food businesses (4.2%, Mobile Bartenders (3%), Bakers (2.4%), and Personal Chefs (2.4%)

All data sources can be found in the 2024 Food Industry Economic and Trend Outlook Report prepared by FLIP.

For the complete report, please visit: https://www.fliprogram.com/food-and-beverage-industry-trends.

About Veracity Insurance (Parent Company of FLIP)

Veracity Insurance is recognized for providing exclusive programs with in-house underwriting and binding authority, working alongside A-rated carriers. We pride ourselves on offering fast turnaround times for our retail agents and specialize in a wide range of insurance solutions, including Product Liability, Program Management, General Liability and Surplus Lines Filing.

Discover the future of workers' compensation insurance with FLIP by Veracity Insurance. Simplify your coverage, protect your business, and experience unmatched convenience today.

Media Contact
Kyle Porter, Virgo PR
[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/food-liability-insurance-program-flip-releases-2024-economic-outlook-report-highlighting-category-growth-and-insurance-trends-302078612.html