Opening a new catering company is an exciting and hectic time. In the midst of all that must be done before the company’s first event, getting insurance is one thing that shouldn't be overlooked. Shopping for insurance isn’t necessarily the most fun part of starting a business, but carefully selecting the right coverages may help make sure the company can survive even if there’s a catastrophe. If you’re in the process of opening a new catering company, here’s how you can easily find the right insurance coverages for your company.
What’s the Best Way to Get New Catering Insurance for My New Catering Company?
A Licensed Insurance Agent
First, plan on comparing policies with an insurance agent who’s licensed in the state where your new catering company will be operating. If you’re near a state border and hope to serve at events in multiple states, you may need to work with an agent who’s licensed in both states.
Licensed agents have met the legal criteria to assist businesses with insurance products in the state where they’re licensed. Most licenses are specific to certain types of insurance, so you’ll probably need an agent who’s licensed in commercial property and casualty policies. Catering insurance policies generally fall under this category.
An Independent Insurance Agent
Second, look for someone who’s an independent insurance agent. Most agents can broadly be categorized into two groups: captive agents and independent agents.
Captive agents work with a single insurance company and typically can’t sell policies from other companies. In many cases, they can’t even show clients policies from other companies -- even if other companies’ policies would cost less or provide more comprehensive coverage,
In contrast, independent agents aren’t connected with just one insurance company. Instead, they work for themselves and help clients with policies from various insurers in their state.
Because they’re free, independent insurance agents are able to help clients find the policy that best meets their coverage needs at an affordable rate regardless of what company is offering the policy.
A Specialized Insurance Agent
Finally, select an independent agent who specializes in catering and other food service insurance. An agent who has experience helping other catering companies and specialized knowledge about catering policies will be familiar with the risks that accompany opening this type of business. They’ll also know what insurance coverages help mitigate those risks, and what particular language to look for in policies’ coverage.
For example, a specialized agent might suggest carrying:
Product Liability Coverage that may cover widespread cases of food poisoning
Inland Marine Coverage that may cover dishes and equipment that are in transit
Equipment Breakdown Coverage that may cover essential cooking and serving equipment
Non-specialized insurance agents will likely know to recommend basic coverages, like general liability and commercial auto insurance. They may not, however, be as familiar with the nuanced risks that running a catering businesses presents and how certain coverages can help protect against those risks. That type of detailed knowledge is what sets specialized agents apart.
Talk with an Agent Who Knows Catering Insurance
To speak with an independent insurance agent who knows catering insurance inside and out, get in touch with us at World Insurance Associates. All of our agents are independent, and many of them have extensive experience helping food service businesses and catering companies. They have the expertise necessary to help you identify the best available policy and the freedom to show you that policy no matter what company it’s from.