Catering and insurance

Any operation working in the complex and risky world of catering and food services operation has a responsibility to maintain general liability insurance on their business. This protection is not only for the caterers and their customers. Many venues will not allow a caterer to work there if that business does not carry basic general liability insurance. This insurance, which is noted for being fairly affordable, and protecting the caterer, venue, and customers from some of the most common problems they might encounter.

General liability insurance is commonly known as slip-and-fall insurance because that is the sort of incident in which it most often comes into play.  If a customer were to encounter unstable footing on the premises, which is an unfortunate but unavoidable part of the world of food services, and if they were to injure themselves, then the general liability insurance would have to pay their medical bills. Catering liability insurance also covers common problems like property damage, reputational damage, and copyright infringement.  Minor lawsuits on these issues will be cared for and covered by the general liability insurance fund and limited forms of legal assistance will be available to those who face such suits.

General liability insurance has an average cost of about $500 for every year. The median cost, however, is only about $300. This means that the vast majority of small caterers can expect to pay around $200 to $400 a year to keep their operation well insured. Statistics indicate that fewer than one business in eight will have pay more than $1, 000 a year for this service.  The cost of catering liability insurance when compared to the ordinary expenses of running a catering operation is nearly negligible.

However, this insurance is an absolute necessity. Uninsured caterers will find that venues will often refuse to host them.  Even food trucks and event caterers will discover their invitation to serve food on premises has been suddenly revoked when the management learns that they are not carrying even basic liability insurance. Most venues simply do not consider it to be worth the risk to maintain an uninsured entity on the premises, especially in a marketplace as well served and oversaturated as that of the American caterer. There is simply no shortage of caterers and food trucks who will be willing to work and possibly take your spot.  If one caterer does not maintain insurance, then they render themselves uncompetitive with all the others.  Catering liability insurance is a simple fact of life in the modern American Marketplace. It should be considered as one of the basic costs of doing business, such as paying taxes or ordering food supplies. No catering professional should think about working without this in their back pocket.