Catering businesses need the right set of ingredients when it comes to catering insurance. The thing about catering companies is they have a lot on their plate already (literally and figuratively)! The last thing business owners want to worry about is hefty lawsuits due to personal injury claims or damaged catering equipment. That’s where catering insurance comes into play.
However, you need a recipe for success. That’s where having a reliable insurance broker like BrokerLink can help you out. Having an expert by your side makes finding a suitable catering insurance policy that much easier. With that said, we’ve created a guide to catering insurance that will make choosing a policy simple.
About catering business insurance
So, what is catering business insurance? Catering insurance provides compensation to those running a catering business in the event that something goes wrong. Types of business liabilities can range from customers claiming to get sick from the food served at their event to someone falling because of a spill. That’s why you’ll want coverage, just in case. Insurance can help pay for bodily injury or property damage as well as legal fees if a case has to go to court, so it’s important to be aware of your options as a caterer.
Everyone should know what’s out there, from corporate event caterers to wedding caterers. It doesn’t matter if the customer already has event liability insurance or wedding insurance. This is especially true when working in high-risk environments. After all, insurance companies will determine the costs of business insurance based on risk factors. With that said, understanding that there is more than one type of insurance available for catering companies is essential.
Types of business insurance for catering companies
There are a plethora of options when it comes to business insurance for caterers. Although some policies are optional, others are mandatory or required for catering businesses. Take the time to examine your business and its needs to find out what matters before purchasing insurance. Offering a catering service can be personally and financially rewarding, but any reputable catering company has insurance. Here are the most common types of insurance catering businesses choose:
Business general liability insurance
Whether you’re coating ribs with your specialty sauce or icing a cake, you need to make an effort to protect yourself and your employees. Insurance can help you provide your services without incident and discourage employee dishonesty. That’s where general liability coverage comes in.
When insured with general liability coverage, you get protection from costs associated with business claim scenarios such as property damage and third-party bodily injury. This policy will compensate you if someone gets sick from eating your food or hurts or burns themselves on a piece of equipment such as a hot plate or chafing dish. Suppose a guest hires a lawyer to sue for bodily injury or third-party property damage. In that case, your insurance coverage will help pay for medical expenses, legal fees and part or all of a settlement.
Commercial property insurance
A successful catering company might opt for a commercial kitchen. Even with up-to-date equipment, you are still at risk for fire, flood, vandalism and theft. That’s why it’s essential to have business property insurance. Like restaurant insurance, it will ensure your property is safe from these common risks. This is especially true when working a job that relies on the satisfaction of your clients.
Business property insurance is helpful in the event of property damage or loss. Adding this to the insurance package will compensate you if an accident damages your equipment or if someone steals from you. For example, if you have to move to a different location while your current one undergoes repairs, business property insurance will help pay for the expenses.
Commercial vehicle insurance
It’s not uncommon for caterers to own a fleet of vehicles. If you run a catering business, you know that you’re always on the go. Having five or more vehicles is considered a commercial fleet, which requires fleet insurance to insure each vehicle. Even if you have less than five vehicles, you’ll need commercial vehicle insurance, which we will discuss shortly.
What does commercial auto insurance cover? Like traditional car insurance, commercial vehicle insurance will pay for repairs to get you back on the road as soon as possible. Additionally, it will pay for medical expenses if injuries occur and basic property damage. However, this will come down to the stipulations of your policy. Review your policy to ensure it will cover lawyer fees if you have to go to court.
Workers’ compensation insurance
To run a successful catering company, you will need employees. As any professional caterer knows, there are many steps to most jobs between the time when you cook and serve food. However, you might know about the risks posed to your employees. Employees are a liability, so you will need workers’ compensation insurance.
If an employee suffers a bodily injury while working for your food and beverage business, you will need protection. Whether they hurt themselves while cooking or serving at an event, you will need to be insured to avoid paying for medical expenses and lost wages out of pocket. Not only will this minimize the chances of lawsuits, but it will also help get employees back to work sooner.
Liquor liability insurance
It’s not uncommon for alcohol to be served at weddings and social events. However, when caterers serve alcohol, they have to be aware of what’s going on during the event. Not having liquor liability insurance puts a catering company at risk in the sense that people make bad decisions when they are drunk. As a catering company, you do not want to be responsible for these choices.
Liquor liability insurance offers protection from potential lawsuits. For example, if someone gets hurt while driving or gets into a fight while impaired, this policy can help. It will cover third-party bodily injury and property damage claims caused by an intoxicated guest. Insurance will also cover legal fees if a case goes to court.
Home-based catering business insurance
Running a catering business out of your home is convenient. It will save you money on rent and additional travel to a commercial kitchen, providing you with a more accessible small business. The other positive aspect is how it allows you to have all of your equipment in one place. However, it should be noted that any damages come at an additional cost because they will not be covered by homeowners or tenant insurance. It also doesn’t protect any money lost from damaging your products in transit.
That’s where home-based business insurance can help you out. If your equipment is damaged, stolen, or broken, the policy will cover the costs. In addition, it covers medical expenses if a customer gets hurt when visiting your home business. Catering companies serve, and mistakes happen. If you’re cooking in your home and end up serving spoiled food, for example, your policy will cover the legal fees if there is a lawsuit.
Between medical-related expenses and potential customer injuries, there are as many risks as there are rewards to running a catering business. Having the right insurance policy can save money in the long run. It will also improve your small business health equity. After all, catering events can be unpredictable and taking your chances is never a great option. You could consider opting into additional policies, such as cyber insurance, for your business. Remember to review the risks of your business and choose the policies that suit your needs to keep you and your employees safe at all times.
Contact BrokerLink today!
Are you on the hunt for the perfect recipe for insurance? You need coverage that protects you from expensive medical costs and property damage fees. However, without a proper guide by your side, this is easier said than done.
Luckily, BrokerLink is here to help. Our team of brokers is well-connected with insurance companies in communities throughout Canada. We’ll help you find the catering insurance policy that provides the coverage you need at a great price. What are you waiting for? Contact us today to request a quote.
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