Catering insurance is a specialized type of Business Owner’s Policy (BOP) which protects caterers from the unique risks inherent to a catering company. Because caterers often specialize in niche markets and operate off premises, these policies are highly customizable and require an insurance provider with an in-depth understanding of the industry.
Types of Catering Insurance Coverage
There are a wide variety of insurance coverage options available, but most food businesses will need some combination of these policies:
General Liability Insurance
This coverage protects from the risks all businesses encounter. During the life of your catering business, a patron might file a suit against you for injuries.
Catering liability insurance covers damages caused by you, your equipment, or an employee’s actions. One example might be a leaking food container destroying expensive furnishings.
Product Liability Insurance
Companies that sell or manufacture products will need product liability protection. This type of coverage may be necessary if your catering company sells packaged items like signature sauces.
Product liability insurance covers claims for damages caused by the use of your products. A mislabeled or defective product causing injury is one example.
Liquor Liability Insurance
If your business focuses on weddings or other celebrations like bar and bat mitzvahs, anniversary dinners, birthday parties, and graduations, liquor liability coverage is a must have. In order to serve alcohol as part of your business, you will need protection against the inherent risks.
Liquor liability insurance covers the server for injury claims resulting from intoxication.
Workers’ Compensation Insurance
All businesses that have employees may be required to carry this coverage by law, and it is especially important in the catering industry, where burns and falls can easily occur.
This vital policy provides coverage for medical expenses should an employee be injured on the job.
Your assets also need protection, including your building, equipment, and inventory. This option can be customized to cover exactly what you need.
An example of additional catering coverage would be protection for losses resulting from power interruption or freezer/refrigerator breakdown.
By its nature, catering includes off-premises activities. Your employees and your equipment must be moved and set up on location. There are specific coverage options that will ensure your policy travels with you.
Off-premises insurance coverage will protect you in the event your equipment is damaged in transit, or if your employees damage rented equipment onsite.
Affordable Peace of Mind
An individualized and comprehensive catering insurance package can be an affordable investment. By carefully evaluating your unique business model and needs, we can help you build a coverage package that includes only the right policies to keep you fully protected.
Most small catering businesses can have peace of mind for around $425-$500 with general liability insurance.
Why Choose Tabak Catering Insurance?