When it comes to catering, most people do not know it is a business that can be insured too. Cumulatively, research shows that the catering industry is of the biggest industries, with assets worth billions of dollars. So the need for insurance is very clear.
In clear terms, catering insurance is simply a pact between a business owner and an insurance agent/company. In this agreement, the latter is expected to cover for any losses that the former may fall victim of.
Nevertheless, insurance packages differ, thus only perils stated in the catering insurance policy will be compensated by the insurance company.
We understand that a lot of people do not know so much about these packages and coverages. Thus, in this article, expect to be taken through the business's need for coverages, and the right coverages for your catering business.
Why is Catering Insurance Necessary?
One thing you do not want to happen is an unprecedented peril befalling your business and you lacking the financial power to assuage the situation. It could run you bankrupt and subsequently see you out of business.
Wars do not inform people before breaking out. Natural disasters take their course at will. Thieves and vandals do not send notices before showing up. You need concrete backup for situations like these.
Also, your catering business can get sued for one reason or the other. Regardless of the reason for the court case, having catering insurance affords you the needed legal backup alongside your employees(if any).
In a nutshell, the essence of having the proper catering insurance policy, is to afford you a concrete sense of security. This will allow you to run your business on a smoother level of peace and freedom.
What Types of Insurance Do Catering Businesses Need?
One thing you need to know first is that, the larger your company is in personnel and assets size, the more risks you are susceptible to.
Smaller catering businesses will most likely work from home, or in small shops. While the bigger ones will most likely have a vast land mass which their kitchens and the likes will occupy.
Thus, different coverages are chosen based on not just size, but also location of the catering business and also the kind of catering they involve in.
Every coverage is designed to combat specific risks. Thus you need a competent insurance agent to help you decide the perfect coverage(s) for your business type.
Coverages that can be subscribed for in catering insurance include the following:
Liability Insurance
When caterers are invited to cater for the edibles for an event, the kind of drinks and food tabled for guests matter. The place given to them to set up could have things that could be mistakenly damaged or destroyed. Imagine a banquet curtain catching fire from the heating pan. Or the walls get stained or smeared by cooking flame, and need to be repainted.
While you may not be held responsible, you could also very well be held accountable for such. So liability insurance has you covered in instances such as these.
Business Property Insurance
This insurance covers for loss caused by natural disasters, fire, theft, and the likes. Meanwhile, if your home is where your business is located, all you need to do is make an additional endorsement of your business equipment and the like. If your business location is away from home, then you will require commercial property insurance.
Business Content Insurance
This insurance provides security for your company's equipment such as inventory, office materials, gadgets and the likes; from fire disasters and so on. It is also called business personal property coverage.
Business Income Insurance
With this insurance you never lose profit if your business is undergoing a slowdown or suspension as a result of a covered peril.
Food Spoilage Insurance
There can be unexpected cases of prolonged interruption of power supply, which can lead to the defrosting and spoilage of electrically preserved food items.
In situations like this, this insurance provides reimbursement to help restock the spoiled food items and thus saves you from any financial wreckage.
Equipment Breakdown Insurance
Most big catering businesses use high end industrial equipment. And these equipment can develop faults at any time. During the time of repair, you might tend to lose profit, but this insurance fills in for you. And also helps with repair costs.
Other insurance types include:
Summary
It is important that you meet with the right insurance agents to help you with your decision making when it comes to choosing the right coverages for you. So, do you need catering business insurance? Are you looking for the most cost efficient catering insurance? Reach out to us to receive a free quote today via https://smallbusinessinsurancegroup.com/