Sometimes, in catering, it feels like you spend half of your time running around and putting out fires—with any luck not literally. It’s fast-paced; you’re on your feet, responding to the unexpected in real time. You can plan a perfect wedding, birthday party or corporate lunch on paper, only to have it change in front of your very eyes. Talk about having a job where no two days are exactly alike!
Utensils? Check. Trained wait staff? Check. Prepared food? Check. Catering business insurance? Hopefully check, or your business could face financial liability that cooks your goose, so to speak. Here are just four reasons catering companies need business insurance.
A customer burns themselves at the buffet
A buffet—while convenient and efficient—can be somewhat of a wildcard when it comes to how customers will act. You’ve set out little placards that warn customers, “Warning: Contents are hot!” But a customer ends up spilling a large ladleful of hot soup down their front. Your servers spring into action and offer ice and towels, but the guest has to head to the emergency room soon after.
In an instant, your catering company could face expensive third-party liability. That is, unless you have general liability insurance to cover injury, medical bills and destruction of property to clients and their event attendees.
You run into conflicts with a difficult client
When you start working with a client, you’re all on the same page. But over time, some clients change their minds, make unreasonable requests and blame you for snafus. Besides signing a thorough contract at the outset to protect yourself, you need professional liability insurance in case a client alleges that your advice or services did not meet their standards. Otherwise it’s just your word against theirs—sometimes resulting in a long legal battle!
Your commercial van gets rear-ended in transit
You’ve lovingly prepared a three-course meal for an event, stacking trays and supplies expertly in the back of your company’s van. Your ETA is actually ahead of schedule. Everything is going to according to plan… until you hear a loud crumpling noise and your van lurches forward. The vehicle behind you didn’t stop in time; they’ve badly damaged your company vehicle and cost you your current contract.
Business vehicle insurance can help. Most states actually require some level of insurance (liability coverage for bodily injury to others and Personal Injury Protection, to name a few). But scheduling your vehicles for additional coverage will help you get your vehicle (and business) back up and running after an accident by offsetting the costs.
Guests at your catered event get food poisoning
Food poisoning is a caterer’s worst nightmare. An outbreak traced back to your business can damage your reputation, drain your finances and shutter your company for good. For example, 149 children recently got staphylococcal food poisoning from one caterer’s improperly refrigerated sandwich meat in South Florida. As ABC Local 10 News reports, the school and daycare center affected both changed caterers as a result.
As you can see, catering business insurance is important across every facet of the industry. Ready to find a policy that fits or re-evaluate your current coverage? Learn more with CoverHound and get a quote today!