Caterers prepare meals and snacks served at the customer's location or in rented facilities for weddings, receptions, meetings, galas, and parties. Food is prepared at the caterers' location then delivered to the event. The catering staff then sets up the food either in buffet style or by giving wait service to guests. They can also offer bartending services or entertainment services upon request. Numerous risks are linked to operating and owning a catering company. Since you serve food and beverages to the general public, you need to ensure that the food is safe for consumption. To effectively do this, it is essential to take catering insurance. In this article, we will explore some of the frequently asked questions about catering hall insurance.
How Much Does Catering Insurance Cost?
The cost of the catering business insurance policy depends on the location, payroll, sales, alcohol serving, and experience. The average price can range from $1,000,000 to $2,000,000 for a general liability insurance policy, and for small caterers, it can be anything from $20 to $50 per month.
Why is the insurance necessary?
Being a caterer is very rewarding but at the same time a demanding job. There is a lot that needs to be given special attention. The food needs to be made according to the specifications of the clients. The venue needs to be a safe environment for employees to work in, and as deliveries are done and orders picked, a lot of responsibilities are involved.
As much as you try to ensure things run smoothly, you have a lot to do, and at times mishaps can occur. A vendor can slide and fall while making deliveries; a client can sue you claiming that your food gave them food poisoning; an employee can get hurt while working. These are some of the issues that may arise, and legally you are responsible. Cost of medical expenses, injuries, legal fees, and repairs can be financially taxing. But if you have a catering hall or personal chef’s insurance, all these issues can be handled by your insurer saving you on costs.
What Type Of Insurance Do Caterers Need?
The type of insurance and the cost of catering insurance varies. Various factors influence your insurance needs, such as:
As much as the specification varies from the caterer to the caterer, there are some coverages that you should have in place. Commercial general liability covers you from third-party injuries and property damage claims. Career liability coverage covers medical care for your staff if they are injured or fall sick while at work. It also covers the lost wages and litigation in case the employee files a lawsuit. You need a commercial auto if you use a van, truck, or car for work-related reasons. The policy covers damages caused by employees during deliveries. It is an essential policy for businesses that offer food delivery services.
Please contact TWFG Insurance at 713-388-6681 to receive a free quote today.