If you love cooking food or you are the type of person that thrives in a lively and fun environment with a lot of people, there’s one business that’s probably perfect for you: a catering business. Most catering jobs involve providing food and drink to large groups of people such as for weddings, birthday parties, anniversaries, holidays, and other special occasions. There are also times when you might be hired to provide refreshments for professional gatherings, such as meetings, team building activities, and company outings. Depending on the size of your business, you might also be expected to provide the waiting staff and the equipment such as tables, chairs, plates, and utensils as well.
If you are able to provide a successful catering service for any event, you will leave with happy and satisfied customers who will likely hire you again.
Wait, That Sounds Awesome! What is the Downside?
Yes, for the most part, having a catering business is a fun and rewarding career for most people. However, as with other careers that involve services, you do have to face certain risks and liabilities. In this case, since you are handling food and drink, you will need to shoulder the risk of making a customer ill from eating or drinking your products. There are several ways that a customer can become ill following a meal served by you. These may include low-quality ingredients, not having proper storage or transport protocols, or not informing your clients about an ingredient that can cause allergies.
There are other risks that you would need to consider aside from those that are directly related to the consumption of food and drink, such as injuries incurred by your employees (if any) and your clients during an event that you catered. Some instances can include an employee slipping and breaking their ankle or a client who accidentally breaks a glass and cuts themselves during the meal.
In order to protect yourself, your reputation, and your business from these risks and liabilities, you need to get a catering insurance policy.
What Are the Types of Catering Insurance Policies?
There are several types of catering insurance policies that you can choose from, namely:
· Catering Business General Liability Insurance
Most people who own a catering business get this type of insurance because it is the most comprehensive policy. It covers legal liabilities, injuries, and property damage. Any reputable catering business will have this kind of insurance to cover any untoward incidents, and many clients will most likely ask if you have it before they hire you.
· Catering Business Liquor Liability Insurance
This is a special type of insurance that you should consider if you plan to serve liquor in your catering service. There are times when a large group of people and alcohol don’t mix well, and these can result in physical injury or damaged property. Having this type of insurance protects you from claims resulting from alcohol over-consumption and acts misdemeanor by guests.
· Catering Business Workers’ Compensation
A responsible catering business owner will ensure that their employees are healthy and happy, and providing them with worker’s compensation is one way to do that. This policy covers the cost of all injuries that are incurred during the employees’ working hours. It will help you settle any medical costs as well as provide income assistance while the injured employee recovers.
· Catering Business Inland Marine Insurance
Since your catering business would require that you move your staff, equipment, and products from one place to another on a regular basis, you need to make sure that they are safe while at the catering venue and while in transit. This insurance covers all costs to repair or replace damaged items during these periods.
· Catering Business Identity Theft Insurance
While this is somewhat a rare occurrence, identity theft can still happen to you once you have established a strong and thriving business. Shady and unscrupulous people can try and steal your brand or company name to trick other people into thinking that they’re hiring you. This insurance covers the legal costs in protecting your brand and prosecuting criminals.
How Much Will This Cost Me?
The cost of a catering business insurance policy will vary depending on several factors such as the policy terms you want, the value of your equipment, and the number of people you have on your staff. Typically, the most common insurance policy – the general liability policy – will cost you around $500 a year in premiums, while additional policies such as worker’s compensation will cost around $1000 a year. You can opt for a bundled package such as the business owner’s policy which can cost around $850 a year.
You can generally get a free catering insurance quote from a reputable coverage provider to get an idea of how much a particular catering business insurance policy will cost.