Over the last few years, catering business owners and other entrepreneurs who work in the meal preparation industry have seen a healthy increase in demand, as well as interest from consumers who are caught up in the foodie revolution. While this is good news for caterers who are skilled in gourmet cuisine, it is crucial to be aware of the liability risks associated with this type of business. Here are some important insurance considerations for those in the catering industry.
Understanding the Risks
A single-person catering operation with a small book of clients faces the same risks as a firm that caters major events such as corporate picnics and holiday parties for hundreds of employees.
It is easy to understand why food poisoning tops the lists of typical risks faced when working in this industry. Eating is a highly organic process that can easily become compromised by means of contamination, spoilage, and preparation issues. Botulism, salmonellosis, and other scary conditions are very real risks that caterers should not ignore. However, these are not the only potential liability issues they could encounter.
Collecting deposits from catering clients is a smart practice among business owners, but it is hardly a surefire indicator the full balance will be paid. In some cases, clients may even demand their deposits be returned, and not just because they are not satisfied with the service. Catering mistakes and mixed up orders are not uncommon.
Other risks may include road traffic accidents involving the delivery van, clients who have too much to drink at a party and end up damaging the hot tables or other catering equipment, fights between employees and clients, theft, and other unforeseen circumstances that cannot always be avoided.
Insurance Coverage Solutions
Since no two catering agencies are alike, the coverage needs will vary from one business to another. The owner of a agency that specializes in catering ritzy events will likely require a greater amount of coverage than a catering outfit that serves small weddings.
Most caterers will want to consider the insurance basics, which include general liability, workers’ compensation, professional liability, and commercial auto insurance in Vista. Additional coverage may be needed if the business serves liquor or if the meal ingredients are stored in refrigerated chambers.
Shopping for Insurance
A good rule of thumb for caterers is to talk to a trusted insurance agent. Agencies offering commercial insurance in Vista tend to be very competitive, which is something that works to the advantage of catering agencies . Instead of automatically falling for low premiums, business owners should consider the level of coverage and the special features offered by various policies.
If you run a catering business and would like to know more about the types of insurance you need, reach out to American Tri-Star. In addition to affordable commercial insurance, we also offer health, home, and car insurance in Vista. To speak with one of our friendly and knowledgeable agents and receive a free quote, call 760-758-1600 today.