All caterers need insurance. No matter if you are a full-fledged 7 days a week caterer or a summer time for small local events type caterer. You will need insurance.
You do not simply need insurance because your agent wants you to have it. It is there to protect you from a number of different risks that could destroy the business you love.
This blog post will help you to understand your insurance needs a little better and ultimately help you find the best fit for insurance.
What is at risk for caterers?
Before we get into the actual insurance details, it is important to know what is at risk. You are probably thinking what can really happen? But a number of things can happen, either by accident or by forces out of your control.
Have you ever thought about if a group you served got sick - even if it was not your fault? What if the brand of meat you used had something wrong with it or an employee forgot to wash their hands after handling raw meat in the kitchen?
What if you got your event orders mixed up and both parties refused to pay?
What if you caused an accident on the road with your delivery van? Even worse, what if it was a multiple car accident and people were severely injured?
What if at an event in which you serve alcohol, things get out of hand and a fight breaks out? Property is destroyed, people are injured, the event is ruined and your client claims it was your entire fault?
In all of these scenarios, you will likely find yourself at fault.
Can you afford to come out of pocket if a couple clients refuse to pay because they were not satisfied with your services?
What about covering the costs of damages if someone is too drunk?
Are you prepared to tackle a lawsuit without the help of insurance? This is why insurance for a caterer is a necessity and not just a good idea.
Buying the right insurance
Insurance is going to be different for every caterer. Every caterer runs their business differently. Some caterers run their business from their home as a side income, while some are full blow catering companies that can do multiple events a weekend.
As a caterer you know that everyone's menu and service needs are going to be different. Well insurance is no different. Your insurance policies and the agent's services will need to match your needs as a caterer.
So, when buying insurance you need to think about two things: 1) Do I have confidence I am getting the right insurance I need? 2) Is my agent giving me the service I need?
Let’s explore what that looks like.
1) The right insurance
Here are a few examples of common insurance policies for caterers:
· General liability insurance
· Professional liability insurance
· Business property coverage
· Commercial vehicle insurance
· Workers Compensation
This is a good start as most caterers will need these policies but there are more to consider if your business does anything unique. Here are some examples:
· Liquor liability if you will serve/sell liquor
· Food spoilage for those with a large amount of stored food
· Cyber insurance for the tech savvy caterer or those with an internet presence
You need the right insurance. There is no way to avoid this without the potential for serious regret if something ever happens to your business.
2) Getting the service you need
Every insurance agent runs their agency differently.
· Some are available to talk in the evenings and weekends.
· Some utilize technology which may make your insurance shopping and reviews easier.
· Some provide resources to help you stay compliant and/or to increase profitability.
· Some may provide coverage in multiple states for larger or growing caterers.
· Some are able to give you quotes from multiple companies or help you switch if need be.
You get the idea. Insurance is more than finding the cheapest insurance policy. Insurance does not have to cost you an arm and a leg but it has to match your needs.
Let your agent serve you
With your services, your client is able to sit back and enjoy their event without having to worry about food or beverages for their guests. Well when it comes to insurance, you should be able to do the same.
You may have an idea of what you need (just as your clients have an idea of what they want) but the real value comes from us doing the hard work for you. We know where to go to find everything, and how to put it all together then deliver it in a professional package.
EMERGE INSURANCE AGENCY
All businesses that sell and serve alcohol need comprehensive Liquor Liability coverage, especially in today's litigious environment. Emerge Insurance Agency offers Liquor Liability coverage for all types of hospitality risks, including hard-to-place bars and nightclubs, along with Assault & Battery coverage and liability limits up to $1,000,000/$2,000,000.
Restricted Exposures - options available
Call us for a quote or with any questions
EMERGE INSURANCE AGENCY
Watch and listen to this Florida business owner's experience with the need for business interruption insurance.
Call to discuss your business's exposures and need for protection before that "what if" happens.
Cecil Williams -