This type of commercial policy is designed to cover the liabilities specific to this type of company.
Catering business insurance is a type of commercial coverage designed to provide small business owners with protection against the liabilities specific to this type of service.
These entrepreneurs don’t always recognize all the risks associated with food service to large groups.
The standard catering business insurance policy provides coverage against the risks to which these businesses are most commonly exposed. These include risks such as:
• Third party injuries,
• Damaged equipment,
• Property damage,
• General liability,
• Liquor liability,
• Off-premises insurance,
• Many other liability exposures associated with serving food to crowds.
As a result, responsible catering companies invest in a policy. A growing number of customers are requiring proof of coverage before they will hire a caterer.
Even caterers that have taken every precaution to prevent damaging a space at a venue and other disasters cannot prevent all types of accidents. Unfortunately, even when damage or injury was clearly unintentional and was not due to negligence, lawsuits from disgruntled clients can happen.
Anything from a customer’s drunken accident to failed equipment or issues from the food served could lead to a legal pursuit against a caterer. Though they are not commonplace, when they do occur, they can be expensive enough to bring a catering company to financial ruin.
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Fortunately, catering business insurance is surprisingly affordable depending on the coverage options needed.
The cost of catering services insurance depends on a number of different factors. These include:
• Unique job functions,
• Business size,
• Revenue expectations.
Therefore, the best way to ensure that a caterer has the coverage needed but at the best price is typically to speak with an insurance agent with experience in commercial coverage. This will help a small business owner to obtain the policy that is the right fit for that company’s unique needs.
That said, regardless of whether a caterer is a single person operation or a larger concern hosting dozens – or even hundreds – of functions each year, there is a catering business insurance policy out there that will provide the right coverage. This policy should be considered a vital component to the ongoing success of a business.