The catering industry is made up of a whole range of companies large and small, each providing the customer with food when and where they want it.
As a business though, catering is exposed to a large number of risks that you, as a business owner, would be well advised to protect against. If you or a member of your staff cause personal injury or damage to property or a customer alleges they have been made seriously ill with your food, then having the right business insurance in place could save you a great deal of time and money.
What insurance might you need?
Clearly catering companies are all different. Some have static premises, some travel around from place to place. Still others are focused on the hospitality industry, supplying weddings and parties for example. Some catering businesses may be licenced, the other ones – unlicensed.
The risks catering businesses face are different in the detail, but at a high level we can generalize what threats you might face. To start with, there are two types of liability insurance for you to consider, which could protect you from certain situations.
Public Liability Insurance
Having access to the same premises as the public, be it an eating area, your marquee, or just some free standing plastic chairs and tables, means you should think about public liability insurance.
It can help protect you against compensation costs and legal fees, which you could be required to pay if a member of the general public suffered an injury or accidental damage to their property due to your negligence at work.
For example, you were asked to cater at a wedding and were carrying a hot plate with food to be served. Suddenly you tripped over a chair, lost your balance and dropped the hot plate. All of its content accidentally landed on guests seating nearby. They got burned and had to be taken to a hospital. As a result you could be facing not only a wrath from newlyweds’ and their families but also hefty compensation costs for injuring the guests and ruining the special day.
Employers’ Liability Insurance
The second type of liability policy is employers’ liability insurance. This is a compulsory form of insurance for anyone that employs staff, including temporary, seasonal and contract workers as well as students and interns. It could cover you against claims made by your employees which resulted from an injury or illness they suffered because of work they carried out under your employment.
How much does insurance cost for a catering business? Let’s look at some numbers showing the typical range of insurance premiums for caterers. Remember, the numbers below are cost estimates, and might not reflect how much you’ll actually pay for catering insurance. Depending on where you’re located and how large your business is, you could pay a higher or lower premium.