If you’re in the food and event organizing industry, you’ve probably heard people talk about things like catering insurance. And, because you most likely have general liability insurance for your business, you might wonder whether you need it.
Well, catering insurance is a form of commercial insurance that covers different types of catering-related business liabilities. This insurance aims to protect a catering business against risks that may arise when serving food and drinks to large groups of people. Such risks can include third party injuries, equipment damage, and property damage. This insurance is considered essential for any responsible catering business.
Why You Need Catering Insurance for Your Business
Regardless of what your specialty is in the catering industry, how you connect with guests and clients is very important. Any caterer pays keen attention to the ingredients they use in preparing the foods they serve at different events. You also take extra care when it comes to the preparation and presentation of food and drinks.
But, even when you do all this, something unexpected can happen. For instance, a guest can slip and fall on hot food thereby sustaining serious injuries. Even if you had a written sign showing the presence of hot food, you may still be accused of negligence.
A guest can also experience a stomach problem after attending the event you were hired to prepare and serve meals. You can also be accused of causing food poisoning. If you don’t have catering insurance, your business might eventually close from the payment of legal expenses and damages. To avoid this, get catering insurance to cover all of these risks and serve your guests with confidence.
What Catering Insurance Covers
Thankfully, researching about different catering insurance policies can now be done online through reputed online insurance companies. If you get catering insurance by Next Insurance, for instance, you can read about their policy details online and buy a coverage that best suits your needs. Essentially, there are different types of catering insurance policies. However, most catering insurance policies cover the following:
Bodily Injury- This protects your business in cases like when a guest burns their mouth after your business served hot dishes at a wedding and blame you for their injury.
Medical Payments- A guest can burn themselves eating hot food and rush to the emergency room. This insurance will protect your business if they demand it that you pay for their hospital visits and expenses.
Advertising Harm- If you did an event and included its pictures in your advertisement you can be at risk. If client sues for using a photo for advertising you may be required to pay compensation. Now your business is facing a case for advertising harm. This insurance can protect your business in such an eventuality.
Property Damage- Your business employee can spill food and knock over an expensive vase owned by the client during their cocktail party. Your business may be required to buy a new vase for the client. This insurance will cover you for this.
Catering business faces different types of risks. An ideal insurance policy should cover all risks that your business is likely to face in all its operations. Your catering business can prepare and serve food in different venues and locations. It’s, therefore, important to ensure that the insurance you buy covers equipment and liability regardless of the location.
Cost of Catering Insurance
The amount you pay in premiums for catering insurance will depend on several factors. These can include the size and location of your business. But, there are different coverage options for different businesses of different sizes. You can also have a custom policy for your business. What’s more, you can increase the coverage limits for your business as it grows, acquire more equipment, and provide more services.
Nevertheless, having catering insurance is better than paying for damages that may arise from claims by clients and guests. Paying compensation for damages worth thousands or hundreds of dollars can be a serious problem for your catering business. And, you can avoid this by getting a policy that provides maximum protection to your business.
The Bottom Line
Any catering business, whether small, medium, or large, should have catering insurance. Of course, not every caterer serves the same food type or provides the same service. So, if you get catering insurance check to see what it covers. Get catering insurance that provides maximum protection or coverage for your business.