Catering is a $9 billion industry that is expected to grow by about 1.5% every year for at least the next decade. So this might be the time to open your own catering business or expand the one you currently have. But before you do so, you should make sure you have enough insurance coverage to protect your business and its employees. Get to know the coverage you need to include within your caterer insurance policy.
General Liability For Caterers
When you work as a caterer, you serve people food and drinks at a variety of places, from businesses to homes. This is why you need a business insurance policy with general liability that covers you wherever you happen to be working. For example, if the food or drinks you serve make people sick, or if a customer trips over a stack of serving trays, general liability will pay for any medical treatment or lawsuits that occur as a result.
The general liability portion of caterer insurance also pays for any lawsuits brought on by competitors. So if another business claims that you have committed libel, slander, or copyright infringement, you will be glad to have liability coverage to pay for your legal costs.
Business Owners (BOP)
A business owner’s policy combines a few kinds of coverage that you need as a caterer. Since it includes property coverage, any business property you use for storing serving tools or hosting catering events will be covered in case of robbery, fire, or most other disasters. This means if the building or its contents are damaged or lost, you will be compensated so you can make building repairs and buy replacements. You can also add other types of coverage to the BOP, such as accounts receivable, forgery and alteration, electronic data processing, and off-premises coverage that pays for any damage you cause to the location where you are catering.
Commercial Auto Coverage For Caterers
Most caterers do a lot of driving, so their car insurance should be top notch. In fact, any car insurance policies that caterers have should be commercial, not personal. Whether your company has a fleet of vehicles or only one car, you should make sure your business insurance includes commercial auto insurance if you want to be covered while driving to and from catering jobs.
Workers Comp Insurance For Caterers
If you employ anyone within your catering business, workers comp is a necessity. This way, if any employees are burned while serving hot food, or maybe trip and break an arm while on the job, your caterer insurance will pay for their medical bills and any necessary rehabilitation. They may also be paid any wages they end up losing during the recovery period. Basically, workers comp makes sure your employees are taken care of, which should be a benefit to everyone at your company.
As necessary as general liability insurance is, it is not always enough to pay for any damages you are responsible for. If you are worried about the possibility of having to pay out of pocket after losing a lawsuit, you should add excess liability coverage to your caterer insurance policy. You can add this coverage in increments of $1 million for a small fee.