Insurance for caterers is a safety net of coverages designed to protect you from the costs of expensive claims. Covered claims included in your catering insurance policy can look like an injury, food poisoning, equipment loss, and property damage.<\/p>
Before taking on any catering event, it\u2019s imperative to have adequate catering insurance coverage. <\/a>Your catering insurance quote can include:<\/p> The Food Liability Insurance Program (FLIP) also provides extra policy options \u2013 a trailer endorsement and increased limits \u2013 if your catering business needs more protection.<\/p> Every catering business operates a little differently, which means each one will have unique insurance needs. Broadly speaking, most catering companies will be filed in one of three categories:<\/p> When you get new clients interested in catering insurance, understanding what kind of catering business they run should be your first step. Once you know how their business runs, outline which kinds of insurance coverage they need. For instance, commercial auto insurance is crucial for mobile and off-premises caterers but likely will not be necessary for on-premise caterers.<\/p> If you serve food or drink at events, you should protect your business with a catering insurance policy. During the preparation for any event, there is so much to plan for (and, for catering staff, so many meals to coordinate). However, it\u2019s important to plan for the unexpected as well. <\/p> Out of the hundreds (or even thousands) of people you serve, one small liability claim from a guest can cost tens of thousands of dollars, totally disrupting your business\u2019s financial security. This insurance package is recommended for catering businesses of varying sizes and can be tailored to suit your needs, including:<\/p> Food and beverage industry insurance\u00a0requirements vary by state law and the requirements of the venue or event planner. Insurance for caterers may be necessary to:<\/p> Catering insurance offers comprehensive coverage for the general and specific risks that catering businesses may face. You can expect catering insurance to include the following coverages:<\/p> CGL insurance protects you from many general, day-to-day risks faced when running a business. If a third party is injured or their property is damaged due to your business\u2019s actions, you can be held liable, and CGL may offer protection. <\/p> For example, if an employee hands a customer a hot plate and burns their hand, you could be liable for their injury. In this case, a CGL policy could cover the cost of their medical bills.<\/p> Be advised that product liability insurance may not cover claims related to alcohol that you serve at an event. If you serve alcohol, you may need\u00a0liquor liability insurance\u00a0also.<\/p> A business owner\u2019s policy includes liability coverage from commercial general liability and business property insurance to help protect your catering business. Business Owners Policy\u00a0can help you pay for:<\/p> Workers\u2019 compensation insurance can help pay for medical expenses and lost wages after a workplace injury at a catering job or in your kitchen. It\u00a0can help you pay for:<\/p> Commercial vehicles are a must for any caterers who need to move food and equipment from their kitchen to the venue. It covers the caterer if those vehicles are damaged, broken into, cause harm to others, or are involved in a crash. <\/p> They also protect owners from the costs of liability suits arising from a crash with the vehicle.<\/p> Contents insurance protects business assets from insured risks resulting in damage or destruction. Examples of insured risks include fire, theft, and vandalism. For example, say you\u2019re catering at a wedding, and a fire breaks out in the banquet hall due to an electrical fault. <\/p> Contents insurance could cover damage to your catering property that was damaged (and any spoiled food) due to the fire.<\/p> Property insurance coverage protects your clients in case of theft or damage to catering property. Theft is common in restaurants and catering companies, so having good property insurance is imperative when expensive equipment goes missing at night.<\/p> However, not all property insurance policies cover off-premises equipment, so make sure off-premises caterers are covered properly.<\/p> Alcohol is a big moneymaker for any caterer, but it also comes with legal risks. Many caterers may not realize that serving alcohol opens them to a world of new and potentially financially devastating lawsuits. That\u2019s why, if they serve alcohol at all, they need to have a good liquor liability policy. These policies will cover the legal costs and penalties if an injury or accident happens due to someone being overserved alcohol at an event.<\/p> Liquor Liability can help you pay for:<\/p> This coverage provides financial reimbursement for lost income after an insured event. For example, say the fire in the previous example caused damage to a significant portion of your catering equipment, meaning you were unable to work at subsequent events due to a lack of equipment. <\/p> Business interruption insurance could cover the cost estimated in lost revenue. <\/p> Note that business interruption coverage doesn\u2019t provide coverage for income that\u2019s lost due to a pandemic, infectious disease, or government-mandated closures.<\/p> Most caterers would assume that they don\u2019t need\u00a0cyber insurance. However, in most cases, they\u2019d be wrong. Any businesses with private customer data like phone numbers, names, or credit cards\u00a0need cyber liability insurance to protect them. If that data were stolen, they could be sued, and without cyber insurance, they\u2019d be on the hook for these costs. <\/p> Cyber insurance also helps pay for losses caused by cyber-attacks and helps them minimize any losses after a security breach.<\/p> Even if you treat your employees like family, you can\u2019t discount the chance that employees might interpret your actions negatively and sue. <\/p> EPLI is there to protect caterers from the cost of lawsuits that come from employees. If employees feel their rights have been violated, they may sue the caterer. EPLI helps cover costs related to the court battle and any damages awarded by the court if they are found liable.<\/p> Without this coverage, catering businesses would be vulnerable to these kinds of suits, which isn\u2019t fair to the owners or the employees who rely on them to make a living.<\/p> Equipment breakdown insurance provides coverage to repair or replace professional equipment that\u2019s broken down or damaged due to mechanical failure or an electrical issue. You can also be covered for lost revenue and food spoilage that\u2019s directly related to the claim. <\/p> Suppose you\u2019re catering at an event, and your warming oven breaks down, meaning hot food cannot be served. Equipment breakdown insurance can cover the costs to repair the oven, and cover the estimated lost income and food spoilage costs.<\/p> Legal expense insurance covers the costs of hiring a lawyer where coverage isn\u2019t provided under another policy (e.g. property protection, tax protection, or employee bodily injury). It provides your business with legal advice from a professional lawyer and the financial coverage to retain legal services when needed.<\/p> Catering businesses come in all shapes and sizes, so there\u2019s no fixed cost. For a starting point, a small- to medium-sized catering business can anticipate a starting cost of approximately\u00a0$800 per year\u00a0for commercial general liability insurance with a policy limit of $2 million.<\/p> You can include additional coverage options and increased coverage limits in your catering liability insurance policy at extra cost. Protect your business your way and never pay for more than you need.<\/p> To calculate a quote, an insurance company will take into consideration the components that make your business unique.<\/p> Here are some of the main factors you can expect to be asked about when making a quote:<\/p> Due to the crucial role that insurance plays in protecting businesses, industry experts advise companies to shop around and compare options from multiple providers to make sure that they get the protection they need at the best possible price.<\/p> Here are the key criteria that caterers should consider when choosing the right policies:<\/p>What are the three types of caterers?<\/strong><\/h2>
Why do caterers need insurance?<\/strong><\/span><\/h2>
What does caterers’ insurance cover?<\/strong><\/span><\/h2>
Commercial General Liability (CGL) Insurance<\/strong><\/span><\/h3>
Business Owner\u2019s Policy (BOP)<\/strong><\/h3>
Workers’ Compensation<\/strong><\/h3>
Commercial Auto Insurance<\/strong><\/h3>
Contents Insurance<\/strong><\/span><\/h3>
Property Insurance<\/strong><\/h3>
Liquor Liability insurance<\/strong><\/h3>
Business Interruption Insurance<\/strong><\/span><\/h3>
Cyber Liability Insurance<\/strong><\/h3>
Employment Practices Liability Insurance (EPLI)<\/strong><\/h3>
Equipment Breakdown Insurance<\/strong><\/span><\/h3>
Legal Expense Insurance<\/strong><\/span><\/h3>
How much does caterers insurance cost?<\/strong><\/span><\/h2>
What you should consider before buying caterers business insurance<\/strong><\/span><\/h2>
Recommended Articles <\/strong><\/span><\/h2>
References<\/strong><\/span><\/h2>