Commercial Property Insurance for Catering Business
Your catering business’s office and warehouse need insurance too. After all, you spent a considerable amount of money on their construction. Also, inside them are numerous valuable items that cost thousands if not millions of dollars. And so, you should consider getting commercial property insurance that primarily covers:
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| Building Destruction | Building Damage |
| Fire and extreme weather will utterly destroy your catering business’s office and warehouse. Commercial property insurance will reimburse your losses equal to the value of the totaled buildings | Fire, extreme weather, vandalism, and other covered perils will damage your catering business’s office or warehouse. Commercial property insurance also provides reimbursements if this happens
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Commercial property insurance has inclusions as additional protection for your business assets. These inclusions are:
Inside your catering business’s warehouse or office are important equipment such as food storage boxes, dinnerwares, risers, cake stands, cupcake towers, vases, centerpieces, insulated food pan carriers, induction cookers, portable grills, holding cabinets, and more. These might get damaged or lost due to fire, theft, vandalism, and other covered perils. There’s no need to worry though because business equipment and tools coverage will reimburse your losses.
Stocks and contents coverage is a coverage for other valuables not considered as equipment or tools. Examples are food supplies, office furniture, important documents, lighting, CCTV cameras, and more. If a fire, theft, vandalism, and other covered perils cause the loss or damage of such items, stocks and contents coverage will reimburse your losses.
How Much Money Can You Get from Commercial Property Insurance?
Commercial property insurance will provide reimbursements based on the actual cash value or replacement cost value of the scheduled property. The table below outlines the difference:
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Replacement Cost
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| In a replacement cost reimbursement, commercial property insurance will give money not taking depreciation of the scheduled property into account. For example, if your catering business’s office is worth $500,000, you’ll also receive the same amount of insurance money | In an actual cash value reimbursement, the money you’ll receive from commercial property insurance will be equal to the depreciated value of the scheduled property. For example, if your catering business’s $2 million warehouse burned and it depreciated 3% over time. You’ll only receive $600,000 and not the full value |
Workers’ Compensation Insurance for Catering Businesses
Your employees will experience cuts and burns. They will also suffer from repetitive motion injuries because of lifting materials and objects. Catering businesses like yours are mandated by law to get workers' compensation insurance.
Workers' compensation insurance is state-mandated insurance. It provides coverage for the following when an employee experiences a work-related injury or sickness. The coverage of workers' compensation insurance includes:
 | Medical treatment/procedure - Workers compensation insurance will take care of the expenses for medical procedure/treatment the employee needs including surgery
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 | Hospitalization - In case your employee needs to stay at the hospital, workers' compensation insurance will shoulder the bills |
 | Rehabilitation - Some injuries or sicknesses might permanently impair an employee without intervention. Workers' compensation insurance also pays for rehabilitation to treat injuries or sicknesses that affect the employee’s quality of life |
| Medication - An employee needs medicines to heal fast. In connection, workers' compensation insurance pays for the medicines the doctor requests the employee to buy |
| Lost income compensation - Some injuries or illnesses will stop an employee from working. Because of this, workers' compensation insurance provides compensation for lost income equal to two-thirds or 67% of the employee’s average weekly wage. Lost income compensation comes as a weekly allowance |
 | Death benefits - In case the employee dies, workers' compensation insurance provides death benefits. Death benefits include but are not limited to funeral payments and cash aid to the dependents |
Liability Insurance for Catering Van
Your catering business depends on its vehicle to transport equipment and goods to the client’s venue. In connection, vehicle use opens the possibility of vehicular accidents happening. Injuries resulting from road crashes are very costly to deal with. If held liable for the accident, catering businesses can face million-dollar lawsuits.
Insurance companies underwrite liability insurance for catering vans as auto liability coverage included in commercial auto insurance together with physical damage coverage, and medical payments/personal injury protection coverage.
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| Auto Liability Coverage | Physical Damage Coverage | Medical Payments/Personal Injury Protection |
| Your catering business’s vehicle will cause an accident and injure third parties or damage properties. The job of auto liability coverage is to get injured third parties treated and hospitalized. It will also reimburse the owners of damaged property | Physical damage coverage will take care of the damage your catering business’s vehicle sustains. This has two forms: collision and comprehensive
| When a vehicular accident happens, medical payments/personal injury protection will take care of your own medical bills as well as the passengers and drivers. But unlike PIP, medical payments also provides coverage for lost income |
Collision vs Comprehensive Physical Damage Coverage
Collision Physical Damage Coverage - This will take care of parts repair or replacement if your catering business’s commercial vehicle incurred damage after colliding with an object or another vehicle on the road. This won’t help if you caused an accident because of:
- Driving under influence
- Using the vehicle to run away from authorities
- Using the vehicle with broken/weak headlights, broken horn, and other safety features the law mandates any car in good running condition should have
- Driving without a license
Comprehensive Damage Coverage - Comprehensive physical damage coverage will cover parts repair or replacement if fire, lightning, storm, hail, other acts of nature, vandalism, and other covered perils damaged your catering business’s commercial vehicle.
By the way, collision and comprehensive physical damage coverage cover specific kinds of damage to the engine. But note one thing though that both don’t cover aftermarket/custom parts
Mobile Catering Public Liability Insurance
A mobile catering public liability insurance will take care of the costs associated with lawsuits the vendors, clients, visitors, and other members of the public raise against your mobile catering business. Just like general liability insurance, this also covers personal injury claims and property damage claims.
Catering Insurance for One Day
Catering insurance one day coverage provides coverage for a limited number of days. This insurance policy is useful for caterers who want to get an insurance policy to get permission to operate at an event. Nonetheless, catering insurance for a day isn’t a very trusty armor against risks. This is because it only provides protection from third-party and customer claims.
Also, it’s important to understand that even though it only offers general liability coverage, catering insurance for a day is expensive. Typically, the cost of this insurance starts at $99 and will need to be paid daily so long as it's in effect.
Single Event Catering Insurance
This is insurance for catering company that provides its service to only one specific event. For example, if the catering company only takes charge of weddings, its single event catering insurance will only apply to the accidents and other problems associated with that wedding.
Event catering insurance is a practical option. Through this policy, the policyholder can use insurance with terms that absolutely apply to the risks of the specific event their catering business is currently servicing.
Home Catering Insurance
Home catering insurance provides coverage to home caterers. This policy is practically useful for those who are new to providing catering services and don't have employees yet. The terms of this policy include general liability insurance, professional liability insurance, commercial auto insurance, and product liability insurance.
