Having a catering business means that you’re always busy, always on the move, and always preparing for your next client. How many times have you planned the perfect event, only for it to go completely sideways? In this industry, mistakes are plenty and no two jobs are the same. The best way to calm your nerves and retain peace of mind in these hectic moments? Catering insurance.
Not only is catering insurance typically required under state law (in order to operate a catering business), but it could also end up saving your business thousands in the long run. What would your business do if a client somehow became injured due to your service? Or what if a client contracted a food-borne illness and then wanted to file a lawsuit against you? These are the types of circumstances that a catering insurance policy can help protect against. Below we cover other common scenarios, as well as exactly what you can expect to pay for a standard policy.
Customer Injures Themself Due to Your Service
This is an all-too-common scenario that’s faced by countless catering businesses across the country each year. There are countless ways that a customer could injure themselves due to your services. Getting burned by hot food or equipment, choking, contracting an illness, etc.
Imagine that you have a buffet set up, and that a customer spills very hot soup or liquid down their body. After your wait staff comes to their immediate aid, they need to be taken to the emergency room for 2nd degree burns. How long do you think it will take them to contact an attorney and inquire about filing legal action against your company? Not very long at all.
This is one of the main reasons why catering insurance is absolutely vital for any business operating in the industry. Not only will it protect you against third-party injury lawsuits, but it will also give you a little peace of mind (which we all know can make all the difference during those hectic days).
Trouble With Certain Clients
Anytime you get a new client is a time for (momentary) celebratory pause. But, as most of you probably know, certain clients can quickly become problems (and even liabilities). What started as a simple job can morph into a gigantic headache if you’re not careful.
If a certain client doesn’t think that your service was representative of whatever contract they signed with you, they might be able to take their case to court. Luckily, you can avoid this major headache by opening a catering insurance (or business insurance) policy.
Your Vehicles Come With Liabilities
Your work vans (or trucks, or cars, etc.) are how you get to job sites and how you transport employees. Have you ever wondered who would be on the hook if someone got into an accident with one of your vehicles? What if one of your employees was injured and they wanted to sue you? How would you be able to afford that? This is where catering insurance (and other insurance types – specifically commercial auto insurance) comes into play.
If you have work-owned vehicles, you probably already have commercial auto insurance (it’s a legal requirement in most states). However if you don’t already have it, you’re taking huge risks every day (everytime someone gets behind the wheel of one of your vehicles). To learn more about commercial auto insurance you can click on this link.
Food-Borne Illness Protection
Sometimes, life comes at you fast. What started out as a normal day can quickly end up becoming a disaster. What’s one of the top fears of any catering company? Having their clients become sick from their food. Food poisoning that’s linked to your company can have fatal consequences for your company (with it being possible that your company shuts down for good). How would your business be able to handle a joint lawsuit from 100 patrons? It would be impossible without catering insurance.
Catering Insurance Cost
The actual cost of your catering insurance policy will depend on the size of your business, the coverage options you choose, as well as where your business operates. The majority of catering companies pay anywhere from $65 to $75 per month for their policies. However, this is only for general liability catering insurance. You can learn more about general liability here. Other types of policies will be priced differently. You can usually save on annual premium costs by bundling several policies into one “umbrella” policy.