Going into the business of catering brings with it great reward as well as many risks. The law in many places requires that catering businesses get catering insurance coverage for their business to ensure the business is covered in case something unforeseen or some untold mishaps happen. You can never underestimate the benefits of getting catering liability insurance. It is your umbrella of protection against all things that could possibly go wrong.
It will only take one incident and your business could be burdened with liabilities and claims for that particular incident such that you would need to declare bankruptcy and close shop. Many companies cannot survive claims that involve a great deal of money especially when it involves the health of the public. If you are just starting your business, providing for such liability is never part of your reserves. If you have been in the business for awhile, chances are your funds are allocated for expansion.
photo credit: Wolfgang Staudt
This is why the government has made it a requirement for catering companies to get liability insurance. Liability insurance is mandatory because it protects the public from accidental injury and harm that it cannot control. The government requires coverage not only for you but also for the public, your customers. You can even include your employees for accidents that may happen in the workplace or while they are working, called workers compensation.
When you cater in other venues, you are most likely to have a vehicle that will bring the food to the venue. There is a possibility of an accident on the way to the catering event. Although you may not be at fault, accidents will take up time and is expensive. If you are at fault, all the more that having a liability insurance will help you. If you have insurance on your vehicle, you will either have no expenses at all with the insurance taking care of everything or your expenses will be at a minimum. There will also always be a likelihood of your vehicle breaking down despite the vehicle maintenance program that you may have. Repair costs are typically very expensive and can affect the finances of your business, most especially if you are just starting or when you have just expanded. The comprehensive insurance plan can also cover breakdown repairs of your catering vehicle and can also include theft or vandalizing.
Because a catering business involves serving food to the public, there is always a possibility of someone becoming sick with food poisoning. The food may be exposed to elements which you have no control of and incidents such as these can become a reason for someone to file a claim against you. Other times, some just want to take the opportunity to get some money from you and can feign all sorts of ailments originating from the food that you served. Having an insurance company covering you will ensure that there is someone who will investigate whether the claim is valid and if it is, can help negotiate for claims to be kept at a minimum.
When you, as a caterer, carry caterer’s liability insurance, you can concentrate on doing your work. Although they say that catering insurance is expensive, it would be a wise decision to get one and will help the business in the long run.
