What Does Catering Insurance Cover?

What Does Catering Insurance Cover?

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The Essential Coverage Every Catering Business Needs  

When you own a catering company, or run a restaurant that provides catering services, it’s crucial to invest in proper catering insurance that will keep your business alive and well – even when unwanted circumstances occur. Full-service and independent caterers, as well as caterers who serve weddings, social events, corporate clients and concession stands, can equally benefit from catering coverage. Check out exactly what a catering insurance plan typically covers and entails.

General Liability Insurance

A security blanket for any catering business, general liability insurance offers solid legal protection in the event that the company is found liable for any incident or event. General liability pays for a catering business’ legal fees, court settlements and bond premiums, in addition to other related expenses. Even if a catering company is found liable in a lawsuit, this insurance allows it to stand up for itself while simultaneously maintaining a successful business.

Product Liability Insurance

One of the most important insurance policies a catering business could have, product liability insurance is necessary to ward off lawsuits that come with a harmful food or drink product sold to one or more customers. Contaminated meat, expired beverages and meals that cause food poisoning or other food borne illness in customers are just three common instances where product liability insurance is desperately needed. If a customer can prove that the food or drink product sold by a catering company made them sick or brought them harm, product liability insurance helps with the extremely high costs.

Business Property and Damage Insurance

In the event that business property gets destroyed – including the personal property of employees who work at a catering business – business property insurance covers a catering company’s work space, inventory, equipment and other business assets. Natural disasters, kitchen fires, criminal activity and equipment breakdowns are all good reason to invest in business property insurance. Policies make sure that damaged property can be replaced, with costs covered, and most offer additional coverage that can be added to the initial business property insurance plan.

Inland Marine Insurance

Although business property insurance plans will assist catering companies with mostly every type of property, only inland marine insurance will protect property that is in transit – specifically items being transferred to and from the catering site. Property that is in a catering company’s temporary care, remains in a fixed location, moves around from place to place, helps send and receive information, and any property of valuable, can all be covered by inland marine insurance. Overall, it helps owners replace and fix business property in transit once it has been lost.

Identity Recovery Coverage  

It may not be ethical, but identity theft does happen – and the restaurant and food industry is no exception. When someone steals a catering company’s financial information, or the owner of the catering business’ personal information, identity recovery coverage ensures that credit will be restored. Policies usually cover any expenses that have to do with wages that were lost, legal fees, the ordering of credit reports and accompanying postage, the notarization of affidavits and the re-filing of applications for loans and grants. Contacting the fraud departments of specific credit bureaus, ordering copies of the catering business’ credit reports, closing accounts and providing legal referrals are all steps that a restaurant insurance agency takes when a catering business utilizes their identity recovery coverage.

Consult a Restaurant Insurance Provider to Get Catering Insurance Today

Anyone who owns a catering business should be experienced enough to know that things can go wrong at the drop of a hat, and that they’re not always in control of the situation. Restaurant Programs of America – a national restaurant insurance agency – has been providing their clientele with catering insurance for years because they know the reality of the business and how crucial it is to be properly insured. At RPA, our catering insurance policies will often include a general liability, product liability, property damage coverage, business property insurance, inland marine coverage and identity recovery coverage. If your catering business needs catering insurance, please don’t hesitate to contact us by calling  866-577-7007. In the meantime, you can request a quote online.