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
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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.
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.