What Type of Insurance Cover Should You Obtain For Your Catering Business?
Insuring your catering business is one of those decisions that you should make during its inception. If any eventualities occur during business, you may end up incurring huge losses if you have not insured it. Business insurance is a broad category that is made of various forms of coverage that apply to different types of business. The type of insurance cover that you need for a catering business may differ from that of another person who runs a retail store. Here are some of the types of insurance that you should include in the policy for a catering business.
Public liability insurance
A catering business involves lots of interaction between the employees and the public. If any member of the public experiences any form of physical or mental harm within your facility, you will be liable to pay for the damages. The most common risk that members of the public may be exposed to in an eatery is slip and fall accidents due to slippery floors. Some accidents may even result from negligence on the part of your staff. When such accidents happen, a public liability insurance cover will be used to cover the damages, including hospital and physical therapy bills.
Product liability insurance
Providing food to people comes with its share of risks. Incidences of individuals suffering from illnesses, sickness, and food poisoning as a result of food eaten in a facility are common. It may be difficult to prove that your food did not cause the illness, especially if medical records indicate otherwise. To avoid battling with such cases in court, products liability insurance can rescue your business. This insurance cover offers compensation for damages as a result of consuming contaminated food in your facility.
Employers' liability insurance
This insurance provides coverage to your employees, both permanent and temporary, against any form of injury or harm that may be incurred as they go about their daily work. In a catering business, employees are exposed to slip and fall accidents, illnesses, and burns and other accidents that may occur during the preparation of foods. By obtaining this cover, you will be saved from having to compensate your employees directly for injuries incurred at the workplace.
Finally, a catering business may involve providing food at remote sites and events. During such times, you may be required to carry your equipment to the client's location. An equipment insurance coverage offers compensation for any loss or damages on equipment that may be incurred during business. Catering equipment can be expensive, and insuring it can be a great way of protecting your investment.
These are the primary insurance covers that you should consider for your catering business. Consult a reputed business insurance broker who can help you negotiate for the best rates from a suitable insurance company.