Opening a catering business can be a rewarding opportunity. Yet, like any type of business operation, it comes with numerous risks. Your goal is to provide fantastic food and good service to your customers. To do this, and minimize financial loss, you need business insurance. Most catering companies need business owner policy (BOP) coverage or beyond. What are some of the policies from which you can benefit?
Work with your agent to determine the right features to protect your new venture.
General Liability Insurance
In every situation, companies will need to have general liability insurance. It helps protect you from lawsuits and claims filed by others against your company. This may be applicable in situations in which someone becomes ill from your food. It may apply if someone suffers a burn as a result of your actions. This type of coverage provides you with protection from other people’s claims. With coverage, a harmed party can feel better protected.
Are you operating your business out of your home or a third party location? In either case, you need proper property insurance on it. This helps to minimize risks associated with your business. Fires, theft, and vandalism are some key concerns. Most catering companies will have specific equipment. This equipment may include kitchen items, items you take with you to jobs, and your computer systems. You also will want enough coverage for your inventory.
Commercial Auto Insurance
Even if you operate your catering business out of a small car, you need to have commercial auto insurance for it. It will be a key component of your business if you deliver food. If people pick up food from you only, you may not want to invest in this coverage. Commercial auto insurance should include coverage for liability, collisions and other damage.
Business Interruption Insurance
If your business suffers a devastating fire, you may be unable to operate it for a time. This type of coverage can help to cover your business costs during the downtime.
Some companies may benefit from equipment breakdown coverage. This will be important if you operate out of a commercial kitchen. It can help protect you if your refrigerators, freezers, or cooking equipment fails. It can also help cover food spoilage.
Discuss your needs with a business insurance agent at 716.631.0190. Determine if you have enough coverage for the situations you are dealing with right now. But, you may want to consider extensive policies to cover your catering business as it grows.