A catering business revolves around providing services to clients at special events, parties, weddings, hotels, and other special occasions. You’ll set up the food and beverage area, offer different types of beverages and food items, and often provide waiting staff as well. As a catering business, you will also find a variety of risks, many of which pertain to the type of work you do. Since you are dealing with food and drinks, you have to face the risk of liabilities from food that has made someone ill, whether it was lack of informing them of the ingredients or foodborne illness. Other risks include injury to an employee or a client at the event, liabilities, and risks associated with any type of business. Protect these and other risk exposures by obtaining catering business insurance that offers coverage for every potential risk your business has.
Types of Catering Business Insurance
There are several types of insurance policies that will be beneficial to catering businesses. The following business insurance policies cover the risks you may be exposed to as a business.
Providing coverage for a wide range of risks, general liability insurance is going to be one of the most comprehensive policies you can get. General liability will help to cover legal claims, property damage, bodily injury, personal injury, and advertising injury. For example, if your catering business is providing a service for a special event and you accidentally spill water on the floor which a guest falls on shortly thereafter, you will be liable for their injuries, along with being responsible for the medical costs and treatment.
If your catering business chooses to serve liquor, you should also have a liquor liability insurance policy which will cover personal injury or property damage caused as a result of the consumption of liquor you serve. Over-serving liquor to someone and you are aware of how intoxicated they are, can actually be turned around on your business if they receive an injury. Liquor liability will cover these types of claims.
Each and every one of your workers should be covered by worker’s compensation. Worker’s comp will provide coverage to your employees in the event of a work-related illness or injury. For example, if you have an employee that trips while carrying a tray of food and breaks an ankle, worker’s comp will cover their medical costs as well as provide them with income assistance until they are able to return to work.
As a business that provides a service, you should also consider getting Inland Marine insurance. Inland Marine protects your goods and equipment when they are on property you don’t own as well as being transported or stored. So this way if damage is caused to your inventory while it in storage or your equipment between the event and your storage facility, the repairs or replacements will be covered.
Since your catering business uses a vehicle on a daily basis for business operations, it is vital that you obtain a commercial auto insurance policy. Not only does commercial auto cover you in the event of an accident, but it also provides coverage for theft and damage to your vehicle or contents, such as from vandalism. If your catering van is vandalized overnight and some equipment was left in it.
Whether or not you think these risk exposures are probable, it’s important to cover every risk regardless of how likely it is to occur. One illness caused from your food, or one slip due to a drink you spilled and didn’t clean up quickly, could cause your business to fail due to the high medical and legal costs. Protect your assets and your business with catering business insurance.