Whether you're a pub or restaurant offering outside catering for weddings and other events, or you're a full-time mobile caterer, it can be highly satisfying knowing the difference that you've made to someone's special day. But in doing so, you still need to be careful to protect yourself, and not leave yourself unnecessarily exposed to financial risk should events take a turn for the worse.
At Park Insurance we have been providing specialist insurance to those working in the food industry for more than 20 years. We use our position as preferred brokers to some of the UK's biggest insurance providers to find you insurance that will mean all you have to worry about is what delicious delicacies you're going to serve up. And we can make sure it fits your budget too.
Understanding the Core Insurance Needs of a Caterer
Whether you cater events, sell food to the public from a stall or serve meals from a cafe or restaurant, you need catering insurance that protects you against all eventualities. There are four key insurance strands that your business will need:
- Product liability - to protect you should a member of the public fall ill because of a product your business has supplied them with. As a caterer, this will most likely relate to the food you prepare, for example, if it leads to a case of food poisoning or an allergic reaction. However, product liability will also cover you if a product such as a hand soap or sanitiser produces an adverse reaction. The cover is usually offered between £1 million to £10 million, and the higher your coverage, the more you'll need to pay on your premium.
- Public liability. This is used to protect you against claims made by members of the public who become hurt or whose personal property becomes damaged whilst at your premises, food stall or catering van. Public liability comes into play if a customer slips on a spilt drink in your restaurant and hurts themselves or if a customer's jacket is torn on the menu board outside your food stall. It can cover any legal costs you incur and any compensation you need to pay.
- Employers' liability insurance - a coverage which is a legal obligation if you employ any members of staff. The only exception to this rule is if all the staff are immediate members of your family. Your employers' liability coverage should be a minimum of £5 million. This must be put in place to cover any claims made by staff members for injury or illness attributable to your business.
- Business contents insurance - to cover the cost of replacing contents such as your catering equipment, your tables, seating and tableware should these be damaged or stolen. If your catering business hires in equipment, you'll need to secure a policy that takes this into account and offers you sufficient coverage. Surprisingly, business contents insurance doesn't always cover your food and drink stock as standard, but you'll almost certainly want to ensure that your catering business insurance policy includes this coverage. Stock cover is invaluable when a prolonged power outage leads to the spoilage of your refrigerated and frozen foods.
In addition to these crucial elements of food catering insurance, depending on your individual requirements, you may like to add additional cover. You'll find more information about these add-ons as the following questions are answered.
What are the different types of catering insurance?
As a caterer, you want to feel that you're taking out a policy that best reflects your business. Some caterers have a rather changeable enterprise, with seasonal work and staff, meaning a more flexible policy would suit them. In addition, a policy for a caterer with fixed premises wouldn't accurately represent the needs of a mobile operation nor offer sufficient cover.
Finding the right type of catering business insurance gives you the reassurance that you're ticking all the boxes while also not paying out for cover that you don't need. You'll find focused policies such as:
- Private catering
- Commercial catering
- Mobile catering
- Catering van
- Ice cream van
- Catering trailer
- One-off catering
- Restaurant and cafe (if you also offer catering services)
When can I use my catering insurance?
To understand just how useful insurance can be for your industry, you should consider some of the most common scenarios where food businesses receive claims for compensation:
- A customer falls ill with food poisoning after eating your catering
- A customer hurts themselves because the food or drink you have served is too hot
- A customer is injured, or their property damaged due to a product you provided them with (such as takeaway food containers)
- A customer is injured, or their property damaged while in or around your catering location. For example, they might tear an expensive item of clothing on your trailer or slip on a spilt drink and hurt themselves
- A member of your team causes damage at the venue where you're catering
- A member of your team hurts themselves or falls ill as a result of their work within your catering business
What's more, you may find your business is left in financial jeopardy by incidents outside your control, such as:
- Your premises becoming damaged and your stock lost due to flooding, fire, or storm damage
- Catering equipment being lost or stolen
- Your catering van or trailer being damaged, stolen, or vandalised, while in a location agreed by your insurer
As any caterer will know, these scenarios are not uncommon. Catering liability insurance will help you defend any claims and pay any compensation you are deemed liable to pay. It can also be used to help carry out repairs or purchase replacements should you incur losses or damages.