Catering Services
There are companies in the market, non-professionals or “pirates” that offer Catering services without having the legal requirements, experience or the necessary means to provide them.
These companies, like many legal companies in our sector, are usually linked to related sectors such as conventional catering, hotels or confectionery. Choosing a good company is essential for success, for this reason, our Association has prepared a selection of the eight main points that must be taken into account to qualify and hire a good catering company.
Catering service insurance
Catering insurance is a combination of insurance policy offers. Catering liability insurance and catering property insurance can be combined into one policy called a business owner's policy (BOP). BOPs offer insurance coverage in a policy at a more affordable price than you could afford if you bought them separately.
Most common types of Catering Insurance
Business Owner Insurance (BOP)
A business owner's insurance policy, or BOP, combines property insurance, business interruption insurance, and general liability protection in one package. A BOP helps caterer service providers save money by having a discounted rate when bundling policies. Insurers price BOPs based on the value of business property, operations, and the location of the business. Catering services with high-value equipment can generate higher premiums.
Some catering companies may need workers' compensation or commercial auto coverage. Those coverages are not included in the BOPs, so business owners generally need to purchase workers' compensation or commercial auto policies separately.
Commercial property insurance
Commercial property insurance protects your caterer's workplace and the personal property inside. In addition to protecting your business building and its contents, commercial property can cover exterior fixtures such as fences and exterior signs.
Caterers may want to look for additional coverage called equipment breakdown. Equipment breakdown coverage helps pay for the repair or replacement of damaged equipment on a covered claim.
Commercial general liability insurance
Commercial general liability insurance protects your catering business from third party claims for bodily injury, personal injury, and property damage. It would cover medical bills, repair bills, and defense costs. Personal injury claims, such as libel and slander, would be included in your caterer's insurance coverage.
Commercial auto insurance
As you analyze the insurance needs of your catering service provider, you may find that you need to cover your commercial vehicles. Commercial auto insurance protects your leased, owned, non-owned, and contracted commercial vehicles. Commercial auto insurance includes bodily injury liability, property damage liability, medical payments coverage, personal injury coverage, no-fault coverage, and uninsured motorist coverage. Comprehensive collision and physical damage coverage can also be added to your commercial auto policy. Packaging coverages help save on catering insurance costs
Commercial auto insurance also covers drivers who operate commercial vehicles in your catering business by paying expenses related to injury and property damage if you or an employee drive your catering vehicle and are liable for an accident.
Inland navigation insurance
An important topic for catering insurance is coverage of commercial property as you move between storage spaces and event spaces. Although commercial property insurance covers your business property, it only covers your business's primary location. Inland navigation insurance covers a caterer's property in transit, helping to replace it in the event of loss, damage, or theft.
Workers compensation insurance
Workers' compensation insurance protects your employees and your business. Covers workplace accidents, illnesses, and employee deaths. Helps cover medical fees and lost wages for employees injured on the job.
You may want to consider workers' compensation insurance if your caterer is ready to hire its first employee or you have one or more full or part-time employees. Workers' compensation insurance is required in almost every state for catering businesses with employees.
