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. In this guide, we’re going to discuss catering insurance.
Catering insurance is a tailored insurance package that helps cover costs if the food you made caused foodborne illnesses. You can also use this to cover liabilities for accidents caused by hired food delivery drivers who don't have their own food delivery insurance.
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:
General liability insurance
Professional liability insurance
Product liability insurance
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. This is particularly true if the accident resulted from the failure to eliminate safety hazards by maintaining and cleaning the premises well and using well-conditioned equipment.
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 | Third-Party Injuries | Legal Costs |
| If your catering business damaged the event venue, general liability insurance will reimburse the losses of the property owner | 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 | 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 |
General liability insurance doesn’t limit itself to protecting your catering business against personal injury claims and property damage claims. It has optional policies that cover other exposures associated with your catering business's interaction with clients, vendors, visitors, and other third parties. These optional policies are:
 |  |  |
|---|---|---|
| Advertising Injury Coverage | Products and Completed Operations Coverage | Rented Premises Liability Coverage |
| Your catering business might damage the reputation of another catering business verbally or in writing. It’s also possible for it to copy another business’s name, logo, slogan, or advertising. For such cases, advertising injury coverage will cover legal expenses on your behalf. Perils included in the language of advertising injury coverage are - slander, libel, copyright infringement, and other related acts | You might have caused personal injuries or property damage after completing the catering service, The job of products and completed operations coverage is to cover attorney fees, compensatory payments, and other legal costs if a past client files a claim | Are you renting a commercial space for your catering business’s operations? Understand that you’re responsible for paying the landlord if a fire damages his commercial space. The job of rented premises liability coverage is to pay on your behalf |
Prevention is better than cure. Managing risks ensures that your business won’t be responsible if something happens to third parties. Furthermore, it helps keep insurance rates stable. Here are some risk management techniques to follow:
Proactive cleaning - caterers should always clean after dirt, as this greatly eliminates the risk of slip and fall accidents
Efficient floor plan arrangement - messy floor plan arrangement contributes a lot to slip and falls. And so, it’s important to place tables, chairs, and other related objects in a manner that allows the crowd to move easily and safely
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:
Negligence
Violation of good faith
Misrepresentation
Violation of fair dealing
Violation of confidential information
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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 | 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 |
Commercial property insurance has inclusions as additional protection for your business assets. These inclusions are:
Business equipment and tools coverage
Stocks and contents coverage
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.
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:
 |  |
|---|---|
| Replacement Cost | Actual Cash Value |
| 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 |
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 |
 | 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 |
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. Note that this policy is usually included in catering truck insurance.
 |  |  |
|---|---|---|
| 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 this insurance for catering van 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 mobile catering van insurance coverage 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 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:
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
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. 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.
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. Sub-limits apply if the general liability insurance comes with products/completed operations coverage and advertising injury coverage.
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.
So what are some excellent companies that provide one day catering insurance? Recommended ones are Thimble and FLIP.
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 addition, here’s a table showing the pricing of the best carriers for catering businesses:
| Cost per Month | Cost Per Year | Best for | |
|---|---|---|---|
| CoverWallet | $40.75 | $489.00 | Catering insurance online quote comparison |
| Thimble | $43.17 | $518.04 | Single event and one-day catering insurance |
| NEXT | $44 | $528 | Small catering businesses |
| The Hartford | $51 | $612 | BOP catering insurance |
| Progressive | $55 | $660 | Commercial auto insurance for catering businesses |
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 | $27.16 | $326 |
| 10 | $48.66 | $584 |
| 15 | $70.16 | $842 |
| 20 | $91.58 | $1,099 |
| 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.
Catering insurance quote comparison online is the best way for catering businesses to find the fairest and most useful policies. You can do so on this website by clicking the “Get Quotes” button. Upon filling up the form, you’ll get the quotes from the best catering insurance companies.
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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.
Cancel a policy anytime
Get insured instantly online
Has an online quotes comparison platform
Pay premiums online
Doesn’t have its own tailored catering insurance
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.
For catering businesses like yours, we recommend getting business owner’s policy from CoverWallet. It’s because it has all the essential insurance policies needed for comprehensive protection.
When buying insurance, there’s no need to talk with an insurance agent because CoverWallet gives you the liberty of buying insurance on your own. Though if you have questions, CoverWallet’s live agents are easily reachable and will be more than happy to give buying tips.
Best for: Catering insurance online quote comparison
Average cost: $40.75 per month
Our rating: 10/10
Single event and one-day catering insurance
Online insurance application
Rates are somehow expensive
Thimble offers a single event and one-day insurance for food caterers, corporate caterers, and party caterers. Also, it implements an online application process so that customers, who are in dire need of coverage, can quickly avail the policies they want.
Best for: Single event and one-day catering insurance
Average cost: $43.17 per month
Our rating: 9/10
Online application process
Allows you to add additional insureds to your policy
Online claims filing
Allows you to track your policy with the Next website
Numerous discount options
Doesn’t have a single event or one day insurance coverage
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.
Best for: Small catering businesses
Average cost:$44 per month
Our rating: 8/10
Comprehensive BOP coverage
Known to process claims fast
Transparent catering insurance quotes
Doesn't easily provide insurance to small businesses
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.
Best for: BOP catering insurance
Average cost: $51 per month
Our rating: 7/10
Offers general liability insurance for small caterers
Generous commercial auto insurance coverage
Progressive underwriting is very strict and you have to prepare lengthy talks
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.
Best for: Commercial auto insurance for catering businesses
Average cost: $55 per month
Our rating: 6/10
1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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