Insurance for Catering Businesses

The cost varies per policy. A General Liability Insurance for a catering company, for example, can be a low as $30 a month.

Contents insurance coverage as a part of a Business Owner's Policy will pay the cost to repair or replace the essential equipment you use to operate your business. In case of fire or other covered loss this insurance can keep you in business when you would otherwise not be able to replace your damaged equipment.

Your food inventory and equipment is the lifeblood of your business. So, mishandled food can lead to food-borne diseases and customer claims - both of which could ruin your business in an instant. With this type of insurance, your catering business is covered in the event of a food-related loss.

Catering insurance is intended to cover the liabilities involved in your catering business. Its primary focus is to protect your business against risks that come with serving food to large crowds, damaged equipment, customer/employee injuries and property damage.

A Catering business is in high demand for weddings, corporate parties, anniversary parties, and a variety of other celebrations. You are expected to create and deliver meals, appetizers, and desserts that leave a lasting impression on guests. To build a successful catering business, you need to have a knack for more than just cooking or baking. You need a good work ethic, relationship building skills, and insurance for your catering services. Caterer insurance protects you during the worst moments when lawsuits or claims threaten your financial strength and reputation.

Working in the food service industry means you face unique risks in addition to typical business risks.

• Food Sickness: The number of food allergies you have to adjust to is on the rise. If you fail to alter recipes or ingredients are cross-contaminated accidentally, it can cause a serious allergic reaction. Food preparation requires particular care. If spoiled ingredients are used, or the final product doesn’t maintain a required temperature, it can quickly spoil and cause food poisoning. In either scenario, you are responsible for any medical expenses.
• Spoiled Food: You rely on refrigeration systems to store your groceries and supplies. What happens if you return to your kitchen one morning to find the electricity failed in the middle of the night. How will you pay to replace lost ingredients or final products?
• Failure to Deliver: Customers rely on you to deliver at a specified time. Sometimes things are out of your control and delay that. Whether it’s an accident, detour, or that someone dropped an entire tray of appetizers on the floor, customers can allege you didn’t fulfill your contract.
• Alcohol Dangers: Serving alcohol has a long list of risks. For example: if an intoxicated guest leaves an event where you served them alcohol and causes an accident, your catering business can be held liable because they drank too much and you should have declined to serve them.