Business Insurance For Caterers: What Do You Need

Posted on: 25 April 2017

Catering is a growing business, which allows those who love to cook and bake the opportunity to share their delicious and masterful creations with other individuals and make a living doing so. This can be a fun and lucrative business, but it can also be demanding. Despite the fact that it is a fun and upbeat job (under most circumstances), running a catering business comes with its own share of risks. For example, there is the risk of exposure to a variety of hot substances and equipment, the potential for being involved in vehicle accidents, and the possibility of slips, falls, and cuts, not to mention plenty of others risks. While preventative measures and safety precautions can reduce these risks, it is important to have business insurance to really protect your business. Here are some specific types of business insurance that caterers should have under their belt and why:

General Liability Insurance

This type of business insurance will provide insurance coverage to you should a client decide to sue you for personal injury or property damage as a direct result of a catering activity. An example would be if you or one of your employees were to damage a piece of equipment at a client's property during a catering event. The client could sue you. With general liability insurance, your defense costs as well as the damage would be covered. 

Business Personal Property Insurance

As a catering business, there is a good chance that you own personal inventory, equipment, and structures that you utilize for business purposes. Business personal property insurance can help to protect that personal property while it is being used for business against physical damage or loss. You are able to insure this property for replacement value or actual cash value. 

Food Spoilage Insurance

There are a few different things that could go wrong with your food, causing you to need insurance to help you out of a sticky situation. Appliances aren't 100 foolproof, so your refrigerator or freezer could malfunction and stop working at any possible time, causing your food to spoil. If this happens, it could result in you being unable to meet a catering deadline or simply losing all of your produce. Another problem that you could run into is if your food unintentionally becomes contaminated or spoiled and makes one of your customers sick, which leads to you being sued and/or your reputation tainted. Food spoilage insurance can help protect you in both types of situations.

As you can see, business insurance for a caterer is essential to staying alive. If you aren't currently insured, reach out to a business insurance agent to discuss the different types of insurance and the amount of coverage that you need for your catering business.  


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!