Catering Liability Insurance

It's important to protect yourself financially against lawsuits, accidents, and food sickness.

Potential clients are not likely to ask if your business is insured, however, it is a good idea to purchase business liability insurance. Accidents happen and people can get injured during food preparation, while food is being delivered in your commercial vehicle, serving the food, and while guests are eating.

Do not dismiss the idea of purchasing business liability insurance because you have personal insurance. Personal plans generally do not cover incidents that occur while running a business. For example, many insurance companies will not cover damages if you hit another vehicle simply because you have your business name on your personal vehicle without vehicle business insurance because having marketing your business name on your automobile is categorized as commercial usage of a vehicle.

It's important to speak with at least a couple of insurance agents about small business liability insurance for your catering business. Many insurance agents will suggest a minimum coverage between $2-$3 million dollars. While this number seems excessive, it is important to have enough insurance coverage "just in case" something bad happens.

Be sure to get a few liability insurance quotes with a couple of insurance providers if the premiums are too expensive. Sometimes asking the insurance agent to add specific stipulations will lower the insurance premium. For example, your business might get a better insurance premium if it promises not to serve alcohol.

The next lesson is about writing a menu.