Do you want to protect yourself from mishap linked with catering business? If YES, here is a complete guide to getting catering liability insurance policy cover. If you own a catering service company, you face a number of liability risks depending on the types of food and drink you serve, and on other factors.

For example, if you set help a client set up a banquet hall or kitchen, there are chances of some items getting damaged or stolen at the host site. And when this happens, you will most likely be liable. Similarly, if you serve alcohol at events, you will be concerned with liquor liability.

And you will be liable for any cases of illness due to food contamination or improper storage and handling. Another liability you are open to is driving delivery vehicles. As diverse as catering liabilities might be, you can protect yourself and your business from possible lawsuits with catering liability insurance.

Now What is a Catering Liability Insurance?

A catering insurance is a specific type of business insurance that includes various coverage options necessary to protect your catering business from the inherent risks in the catering industry. Catering liability insurance usually entails only those policies that are specific to your industry, so you won’t have to pay for coverage options that you don’t need.

One of the worst mistakes caterers make is to downplay liability insurance. Just as you won’t dare to go out in a rainstorm without some form of protection from the elements, never run a catering service without a catering liability insurance policy. Just as a waterproof coat or umbrella will protect you from getting wet while walking in the rain, catering liability insurance protects your catering business from undesirable circumstances that are unpredictable and uncontrollable.

Having discussed the definition and importance of catering liability insurance, let’s now go into more details. There are various insurance policies under catering liability insurance. And it is highly recommended that you choose any of these policies that are relevant to your catering business. The various policies are explained below:

5 Types of Catering Liability Insurance Policy

1. General Liability Insurance

This type of liability insurance covers a wide range of risks that all businesses face. If you opt for it, it will help protect your catering service from lawsuits filed against your business by clients due to injury, wrongdoing, or other reasons. For example, if you work at your client’s home, and you or one of your employees accidentally damages an expensive items belonging to your client, you may be held liable for the damage.

However, general liability insurance will shield you from these expenses. However, you must bear in mind that this type of insurance policy is not tailored specifically for catering businesses—it’s meant for any business. But it will be sufficient as protection against most liabilities that obtain with catering.

2. Liquor liability insurance

If you serve alcohol at clients’ parties and events as part of your catering services, you need liquor liability insurance to protect you from being liable for any injury a guest sustains as a result of intoxication.

3. Product liability insurance

If your catering service company manufactures or offers certain products for sale, you will most likely need a product liability insurance policy to protect your business against lawsuits that may be filed by consumers of your products.

4. Workers Compensation Insurance

Catering involves cooking and related activities, so burn, falls and other work-related injuries are not uncommon in the catering industry. The law in most states and countries requires any business—regardless of industry—to have a workers’ compensation plan for its employees. This will come in handy whenever an employee sustains injuries during work.

5. Commercial vehicle insurance

Since your catering business most likely uses a delivery van, or has a number of vans for conveying equipment to and from event venues, you will need to insure them with a commercial vehicle insurance policy that meets the minimum liability coverage requirements stipulated by your state or country.

How to Select the Best Catering Liability Insurance Policy

Many times we need more than our own personal judgment to make good decisions. And that’s where seasoned experts come in. No matter how very much enlightened you are about catering liability insurance, it is advisable that you always involve a seasoned insurance agent before choosing your policies. This will help you choose the right policies for your business and help you avoid wasting money on policies that you don’t need.

Bottom line

Catering liability insurance is essential for every catering business. It will help ensure the continuity of the business even after natural disasters or terrible lawsuits. However, I must re-emphasize the need to hire the services of a seasoned insurance agent when choosing your catering liability insurance.

Frequently Asked Questions

  1. What Is Covered Under The Catering Liability Insurance Policy?

Basically, the catering liability insurance coverage protects against accidents that can happen while on the job and any resulting lawsuits. For example, while catering a house party a server accidentally breaks an expensive vase. General liability could cover the cost to replace it.

  1. What Do NCASS Catering Liability Insurance Policies Cover?

The Nationwide Caterers Association (NCASS) Insurance policies and cover are specifically tailored to protecting restaurants, takeaways, hotels, guest houses, B&B’s, pubs, cafes, sandwich shops, and more from everyday trading risks.

  1. How Can You Get Catering Business Insurance?

Here are four steps to follow to get catering business insurance;

  • Assess your risks. Think about what kind of accidents, natural disasters, or lawsuits could damage your catering business.
  • Find a reputable licensed agent. Commercial insurance agents can help you find policies that match your catering business needs.
  • Shop around.
  • Re-assess every year.
  1. What Types Of Catering Business Insurance Should I Consider?

Here are some of the types of catering business insurance you should consider for your catering business;

  • Public Liability – For example, accidents caused by your catering team to clients’ property or guests.
  • Product Liability – For food poisoning.
  • Fire and Hazard – For example, if you prepare food offsite your preparation facility may present fire and other risks.
  • Crime – For cash, money, and alcohol protection.
  • Commercial Property – e.g., damage to your commercial building if applicable
  • Commercial fleet – insurance cover for vehicles used in transportation of food and/or equipment.
  • Business Interruption – e.g., profit associated with the business in the event you are forced to close for an extended period.
  1. What Is Business Liability Insurance?

Business liability insurance protects the financial interests of companies and business owners in the event that they face formal lawsuits or any third-party claims. Such policies cover any direct financial liabilities incurred, as well as any legal defense expenses.

  1. Why Do You Need A Catering Business Insurance Policy?

You would need a catering business insurance policy because caterers are required by law to have insurance due to the risk of injury to clients and guests, as well as damage to venue property. You might need insurance to Cater events. Clients and venues might ask you to have active insurance — usually general liability or workers’ compensation.

Besides, having your team prepare and serve or deliver food offsite inevitably increases the risk of contamination. So, it is essential that you have insurance against liability for any illness caused in this way. Liquor liability coverage is also important protection if your business involves the serving of alcohol.

  1. What is Catering Insurance?

Catering insurance policies are commercial policies that have been specifically designed to meet the coverage needs of caterers and their businesses. Policies usually are written as package policies, which means they come with multiple individual coverages, so they can provide a wealth of protection.

  1. What do Coverages Do Caterer Insurance Policies provide?

There are many coverages that a caterer policy may depend on the policy’s options and a business’ needs, provide. Some of the more common protections are:

  • General Liability Coverage, which might cover some common accidents and defamation lawsuits
  • Product Liability Coverage, which might cover accidents caused by sold foods and drinks
  • Liquor Liability Coverage, which might cover alcohol-related accidents
  • Commercial Auto Coverage, which might cover company-owned trucks, vans, and cars
  • Contents Coverage, which might cover company-owned equipment and inventory
  • Equipment Breakdown Coverage, which might cover the breakdown of essential equipment
  • Food Contamination Coverage, which might cover food contamination that’s caused by a disaster

Please note that caterers that own their own cooking facility may also need building coverage, which normally protects owned buildings and might cover other structures. An insurance agent who’s familiar with caterer policies can help businesses select the coverages that make sense for their situation.

  1. Do I Need Business Insurance If I Have An LLC Catering Business?

Unfortunately, the LLC business structure typically only protects personal property from lawsuits, and even that protection is limited. While an LLC will protect your personal assets and ensure that they are treated separately from your catering business, your business may still need its own insurance policy.

  1. What Information Do I Need For A Business Insurance Quote For My Catering Business?

Most commercial insurance quotes require basic information, including:

  • Business location and industry.
  • Owner information and experience.
  • Details of business operations.
  • Gross annual sales.
  1. How Does Single Event Catering Insurance Work?

Single event catering liability insurance coverage protects against accidents that can happen while on the job and any resulting lawsuits. Keep in mind that single event catering insurance tends to be a lot more expensive per day than a complete policy.

  1. How Much Does Catering Insurance Cost?

Caterers pay a median premium of less than $40 per month, or $465 annually, for general liability insurance. This policy protects catering businesses against customer injuries and customer property damage, along with advertising injuries.

  1. How Do You Get A Certificate Of Liability Insurance?

A certificate of liability insurance is an insurance policy’s proof of purchase. In order to get one, you must buy a small business liability insurance policy. After the policy is issued, most certificates of insurance are available online.

  1. What Are The Benefits Of Insurance To Business?

The benefits of insurance to a business are numerous and some of them are;

  • Helps minimize the financial losses
  • Coverage for lawsuits and settlements
  • Helps promotes business continuity
  • Aids in risk-sharing
  • Protects the image of the business
  • Provides bodily injury coverage
  • Provides property damage coverage
  • Covers for advertising liability
  1. How Much Does Small Business Insurance Usually Cost?

On average, small business owners can expect to pay around $63.53 per month for Public Liability insurance. From our analysis, we found that around 62 percent of small businesses pay less than $50 per month; while around 25 percent pay around $51-100 per month for their Public Liability insurance.

  1. What Is The Difference Between Premiums Deductibles And Coverage Limits?

When you meet your deductible, it means that you have paid the entire amount of your coverage’s deductible, and your insurance will help cover the remaining costs of your covered claim, up to your coverage limit. In general, the higher your deductible, the lower your premium will be.

  1. Do Catering Policies Provide Workers Compensation Coverage?

Catering policies usually are not set up to offer workers compensation coverage. They also don’t normally provide health or disability insurance. Caterers that need these insurances for their employees normally purchase them apart from a catering policy.

  1. What Sorts Of Incidents Do Catering Policies Cover?

With the right protections in place, a catering policy may cover incidents such as equipment fires, food poisoning, damage or injuries caused by intoxicated guests, false advertising, slander, and libel lawsuits.

  1. Why Should You Carry Liquor Liability Insurance?

You should carry liquor liability insurance because liquor liability insurance is critical for costly claims and litigation that arise because of alcohol service and damage or injury caused by an intoxicated person. Even if your bar is not liable in these complicated situations, your legal defense costs can add up quickly.

  1. Do Personal Chefs Need Insurance?

Yes, and this is so because personal chefs are prone to the risk of injury to clients and damage to their property. So also, your clients might ask you to have active insurance — usually general liability or workers’ compensation.

  1. How Much Do Huckleberry Customers Generally Pay For Catering Business Insurance?

The cost to insure your catering business will depend a lot on where you do business and how many people you employ, but our customers have paid as low as $36 per month for their workers’ compensation coverage and $42 per month for their Business Owner’s Policy.

  1. What Businesses in Massachusetts Need a Caterer Insurance Policy?

The vast majority of caterers in Massachusetts ought to carry a caterer insurance policy, for few businesses are risk-free and this tends to be the most appropriate kind of insurance for caterers. Some specific examples of businesses that might want a caterer policy include:

  • Full-time catering businesses
  • Part-time and seasonal catering businesses
  • Employed cooks and chefs who cater alone on as a side-hustle
  • Restaurants that offer catering in addition to traditional dining
  1. What Is Included In Liability Insurance?

Liability coverage pays for property damage and/or injuries to another person caused by an accident in which you are at fault. This coverage is required by most states to legally drive your vehicle. Liability coverage is broken down into 2 parts: property damage and bodily injury.

  1. How Can Caterers In Massachusetts Get A Catering Insurance Policy?

For help finding a catering insurance policy in Massachusetts that has the protection your business needs, contact the independent insurance agents at Scotti Insurance Agency. Their agents have the ability to show you policy options from several insurance companies in Massachusetts, and they can help you select the one that makes sense for your business.

Ajaero Tony Martins