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A restaurant, coffee shop, or grocery store has its fair share of risks that an owner should be aware of and cover with insurance. Running a catering business is no exception to this rule. That’s why you need catering business insurance.
Catering insurance is a tailored insurance package that helps cover costs if the food you made caused foodborne illnesses.
This article will explore every aspect about catering insurance from the cost of the best companies offering this policy.
Catering liability insurance protects your business from claims filed by third parties. This has many forms. However, the most common ones for catering businesses like yours are:
Your catering business will cause personal injuries or property damage to clients, vendors, and other third parties. You’re responsible for the injuries and property damage third parties sustain.
For this reason, it’s very important for catering businesses to get a general liability insurance policy. General liability insurance provides $1 million – $2 million coverage for:
Third-Party Property Damage
If your catering business damaged the event venue, general liability insurance will reimburse the losses of the property owner
Third-Party Injuries
Your employee was distributing soup to the parties’ guests and accidentally spilled the soup on someone. If the injured person decides to file a claim, general liability insurance will pay for medical expenses
Legal Costs
Someone who sustained injuries or property damage because of your business might sue. In such a situation, general liability insurance will take care of attorney fees, compensatory payments the court orders, and other legal costs
Product Liability Insurance
Product liability insurance will cover your legal and financial liability upon delivering defective products or goods to clients.
This will cover attorney fees, compensatory payments, and other legal costs if your business used poorly cleaned utensils and served poorly prepared food to guests.
Product liability insurance will also help if your business causes food poisoning. By the way, note that product liability insurance is available as an add-on to general liability insurance.
Your catering business might commit acts constituting errors and omissions. And this will result in economic or financial losses to the client.
If a client files a claim, professional liability insurance will cover attorney fees, compensatory payments the judge wants you to pay, and other legal costs.
The language of professional liability insurance includes the following perils:
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:
Building Destruction or 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
Commercial property insurance has inclusions as additional protection for your business assets. These inclusions are:
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 van as auto liability coverage included in commercial auto insurance together with physical damage coverage, and medical payments/personal injury protection coverage.
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 one day coverage provides coverage for a limited number of days. This is useful for caterers who want to get an insurance policy to get permission to operate at an event.
Aside from general liability coverage, 1 day catering insurance can be added with inland marine insurance and equipment breakdown insurance.
Your one day event catering insurance will provide a general liability coverage having a $500,000 to $1 million limit.
Get all the best quotes from leading providers in a click of a button!
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
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.
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
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 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.
This section provides catering insurance cost. On average, caterers pay $47 a month or $564 a year for a $1 million general liability coverage.
In the table below, you can take a look at the different cost of insurance for catering business based on the type and business size.
| Number of Employees | Average Monthly Premium | Average Annual Premium |
| 5 | $22.91 | $275 |
| 10 | $44.33 | $532 |
| 15 | $65.83 | $790 |
| 20 | $87.33 | $1,048 |
| Number of Employees | Average Monthly Premium | Average Annual Premium |
| 5 | $31.50 | $378 |
| 10 | $52.91 | $635 |
| 15 | $74.41 | $893 |
| 20 | $95.91 | $1,151 |
| Number of Employees | Average Monthly Premium | Average Annual Premium |
| 5 | $33.00 | $396 |
| 10 | $57.25 | $687 |
| 15 | $78.75 | $945 |
| 20 | $100.16 | $1,202 |
Catering van insurance cost is $41 per month or $492 per year for a $1 million auto liability coverage.
Many insurance companies provide coverage for caterers. However, only a few are committed to providing quality services. The reviews below show the best catering insurance companies and their pros, cons, and cost for a $1 million general liability coverage.
CoverWallet is an insurance broker that offers tailored catering insurance consisting of the insurance products of its partners.
You have four options from this company – general liability with products and completed operations coverage, general liability and commercial property, business owner’s policy with workers compensation insurance, and a custom plan.
Average cost: $40.75 per month
Our rating: 10/10
Next
Next works the same way as Thimble. However, compared to the company above, Next offers a lot of discount options to customers. And so, we think that it’s a better choice for small time catering business and home catering insurance.
Average cost: $44 per month
Our rating: 8/10
The Hartford tends to offer their catering insurance policies as more general business owner policies (BOPs). These insurance policies tend to offer general liability coverage, commercial property insurance, and business income insurance, each of which will keep you protected in case of some of the most common crises that caterers face.
Average cost: $51 per month
Our rating: 7/10
Get all the best quotes from leading providers in a click of a button!
Progressive offers a specific catering insurance policy that includes general liability coverage that will protect you from both property damage and medical expenses incurred by your customers because of your service. This policy will also include commercial auto insurance for your catering vehicle.
Average cost: $55 per month
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
9.4 / 10
Fastest ever online insurance quote and purchase! Also, great rates and professional customer reps that helps with whatever you need, if you need. Nice company!
2.8 / 10
Embroker sells a product that it doesn't honor. We purchased a combination D&O and EPLI policy. However, when it came to renewal, it told us that we only had D&O coverage even through our ACCORD certificate clearly mentions we have both. Basically they refused to honor the EPLI coverage and will leave you hanging with the bag. At time of renewal, they more than doubled our quote to get similar coverage. Basically BAIT & SWITCH. Unacceptable tactics. Easy to buy and pay but you may not be... Read More
2.8 / 10
Great platform. Terrible policy. There is no teeth behind it. No coverage. It's a fake policy that they sell. Sold us an EPLI policy that later we came to find out had no EPLI coverage. Amazing that they can get away with outright fraud. Check the positive reviews. They are all 'Anonymous' posted by Emroker staff. Stay away and find a real policy that will actually provide you coverage. We've been bitten by them and hope to find restitution via a lawsuit.
Paul Burns Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
It has been 70 days since I made a claim on the roof of my building. No one from the company will return calls. We are in hurricane season and located in Louisiana. My building is tarped to secure it.
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
John Murphy Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Worst insurance comapny I have ever dealt with. A commercial vehicle represented by GUARD t boned my wife and daughters family vehicle in the middle of the day. Driver was cited and insurance claim insued. Fast forward 4 months and refusal of full amount of claim is still happening. Driver was found guilty, repairs started on my vehicle and when it comes to the final bill and diminished value we cannot get any help. I am out a family car, have an injured and traumatized wife and children,... Read More
Harshadray Patel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Extremely bad service, when you call , will make you wait on the phone for ever (over an Hour) and still no one to answer , so you end up hanging up. To cancel the policy, bounce you from one department to the other. They are supposed to refund from the date other insurance started and after sending the proof of other insurance policy, still they did not refund based on that actual date instead they use the date i managed to get hold of them. They charged me $7000.00 for a year's insurance on... Read More
Aaron Wensel Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
Guard Insurance is terrible. They were so bad I cancelled them because them couldn't figure out why I would never get a paper copy of the bill . Verified my address with them and still intermittent billing. I cancelled them in March through my local broker. Today 6/27 I get a letter in the mail from a collections company saying I owe 87.97. This was the first myself or my broker heard of owing this money. Here is some advice for this failure of a company send me a god damn bill and I will pay.... Read More
Michael Swink Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
0 / 10
My employer had to have workers compensation by law. He obtained a policy through this Berkshire Hathaway GUARD and they failed me. I fell from a ladder and fractured my spine in 7 different places, my clavicle in 4 places, and the base of my skull. Going to my Dr visits I was prescribed medication for pain and the insurance company placed a pre-authorization hold on me picking up the medication from Walgreens. The hold lasted 5 days! My weekly benefits have never been on time, right now... Read More
10 / 10
Liberty Mutual is one of the more simple companies to deal with. I had to file a claim for my business owner policy after I caught one of my employees stealing a large amount of products from my business. Liberty mutual paid the claim fast and with no efforts. I wish the legal process was as easy…
10 / 10
For me this company has proven to be the best to do business with and worth my hard earned money. Contractors this is your company look no further.
7.7 / 10
Decent experience with Hiscox business insurance
9.4 / 10
Very pleased with Hiscox - their small business insurance rates are very good and they specialize in small business which gives me a peace of mind as a small business owner. So far so good!
10 / 10
Their customer service is absolutely fantastic. Very patient, knowledgable and provided excellent explanation of the purchased policy. I would highly recommend this insurance company to anyone that's looking to protect their business from unexpected expense. Thank you Hiscox for doing a great job for my business!
0.6 / 10
STAY AWAY! I wouldn't recommend hiscox small business liability insurance to anyone. Better not waste both your money and your time. Hiscox customer service is extremely unpleasant, not organized and not professional. It is the worst company we have dealt with in almost 25 years in business!
10 / 10
Good company. Good and knowledgable customer service. If they don't know something they will pass you on to a more experienced rep that is more knowledgable. So far so good.
10 / 10
Extremely fast and simple. Wasted a lot of time and money until I found these guys! I feel like my business is in good hands now.
10 / 10
Hiscox's the best! My business is insured with them for over 12 years and am not planning to switch!
10 / 10
Excellent experience with Hiscox BOP for my coffee shop. They provided all it needed.
10 / 10
My HI barbershop is well covered with their great BOP product for 5 years already! not planning to switch!
10 / 10
Best insurance ever
10 / 10
Coolest concept, I wish this was applied to other insurance products too.
10 / 10
Great experience
6 / 10
Didn't relate to the concept much, but it makes sense if you need insurance to go
0 / 10
It doesn't really feel sustainable to me and doesn't offer business interruption, product liability and commercial property insurance. They have no local agents and despite their technology first approach you cannot file claims online. Additionally, product manufacturers are not covered by Thimble and they don't provide enterprise solutions.
10 / 10
As a contractor that works 3 times a week for a few hours, Thimble gets really handy for me and saves me money. I have no use for these massive business insurance coverages offered by traditional insurance companies.
10 / 10
Excellent concept which is useful to many small businesses!
10 / 10
Been waiting for this type of solution for a long time!
10 / 10
Love their business insurance solutions for freelancers! Great app!
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