Caterers occupy a unique place in the food service industry and therefore, have unique insurance needs. Catering insurance policies are specifically designed to meet these needs. Here’s a look at how these policies generally provide better protection for caterers than some other insurance options do.
How Will My Catering Business Be Better Protected by a Catering Insurance Policy Instead of Another Insurance Policy?
Personal Auto Insurance Policies
Most personal auto insurance policies don’t have sufficient coverage options to meet the needs of established catering businesses. A few personal auto policies might be adapted to adequately caterers who transport food only, but most caterers also need to transport cooking and serving equipment to event sites.
If a business has portable food prep equipment, lots of small wares, expensive serving dishes or furniture, the business will have a hard time getting sufficient coverage through a personal auto policy.
Other Personal Insurance Policies
Most other kinds of personal insurance policies won’t provide caterers with all the protections they need because these are personal, and not commercial, insurance policies. Even caterers who have robust personal policies are unlikely to find any personal policies that provide coverage in the following situations:
Improperly handled food makes many attendees at an event ill
An intoxicated attendee causes a fight and the catering business is sued as a result
A false advertising lawsuit is filed against the catering business
An employee sues the catering business for employment discrimination
Commercial Property Insurance
Commercial property insurance alone is also unlikely to provide sufficient protections for a caterer. This type of insurance usually covers a business property, which may include land, buildings and equipment depending on a particular policy’s terms and conditions. Coverage is often limited to when covered items are at a business’ physical location.
While this is an important insurance that most caterers should have, it alone falls short in two ways. First, a policy that limits coverage to a single location may not cover equipment or products (foods and beverages) when they’re at event locations. Second, the risk of property loss or damage is just one of the many perils that caterers are exposed to. This insurance normally doesn’t cover other risks like those listed above.
Commercial Auto Insurance
Similarly, commercial auto insurance by itself typically won’t fully cover catering businesses. Most caterers are legally required to carry this form of insurance, but protection for a vehicle is far from the only coverage caterers need. Commercial auto insurance policies may not even cover expensive equipment while it’s in transit, much less the liability risks already mentioned.
General Liability Insurance
General liability insurance does offer protection against a range of common liability risks that many businesses face. Again, though, this coverage alone is usually insufficient. General liability insurance almost never covers property, and it might not cover all of the liability risks that caterers face.
For example, many general liability policies exclude claims arising from alcohol-related incidents. That’s a protection that catering businesses which serve alcohol normally need.
Unlike these insurance options, catering insurance does make available the coverages that caterers need. Most catering policies are package policies that combine multiple commercial insurances, often including commercial property, commercial auto, general liability and many other insurance coverages. Among the additional coverages are lots of options that may protect against those risks listed above, as well as many other risks.
Because catering insurance policies contain a number of different insurance coverages within them, it’s important to select a policy with the help of a specialized independent insurance agent. Someone who’s familiar with all of the options that catering policies offer will be able to explain what the different insurance coverages do and how they interact with one another. World Insurance Associates agents will also have the knowledge necessary to make informed recommendations, and they can help compare policies from multiple insurers so long as they’re an independent agent. To get help finding a catering policy for your business, contact an independent agent from World Insurance Associates today.