5 Best Catering Insurance Providers Compared: Coverage, Cost, & How to Choose

Before you start comparing catering insurance companies, start by determining your coverage needs, such as:

• Policy limits: Certain venues, events, or even local governments require you to carry a minimum general liability aggregate limit. This is usually $2,000,000, but it can vary, so make sure to choose a policy that meets that requirement.
• Length of coverage: If you cater year-round, an annual policy is likely the best fit. It can be tempting to buy multiple short-term policies when you don’t know when your next event will be, but this can quickly become more expensive in the long run. 
• Payment options: Some insurance companies, like FLIP, let you save money by paying your annual premium upfront rather than in installments. However, a smaller monthly or quarterly payment is more immediately affordable, so choose the option that works best for your financial situation.
• Your business model/services: A restaurant branching out into catering services needs different coverage than someone starting a home-based catering business. The same is true for caterers offering alcohol service versus those that don’t. 

Generally speaking, most catering businesses need the following types of coverage:

• General liability: Designed to cover property damage and bodily injury claims to other people
• Product liability: Built to cover claims related to your food and beverage products (e.g., food poisoning or unlabelled allergens)
• Personal and advertising injury: Helps cover your legal expenses if you are sued for defamation, false/misleading advertising, or copyright infringement
• Products-completed operations: May pay for claims stemming from your products and services
• Damage to premises rented: Designed to cover damage to a rented property for the first seven consecutive days, then fire damage exclusively 
• Commercial auto: Can pay for accidents, property damage, and resulting medical expenses involving your catering vehicle(s)
• Tools and equipment (inland marine): Helps cover the cost of repairing or replacing your mobile business gear if it’s stolen or damaged
• Liquor liability (if you sell/serve alcohol): Designed to cover expenses you’re held legally responsible for if an intoxicated guest causes bodily injury or property damage after you served them alcohol (required for all caterers that sell alcohol, even at a single event)

While those are the basics of catering insurance, your business may need additional coverage to be properly protected against the risks it faces. When comparing providers, look for those who offer coverages like these you can bundle with your general liability policy:

• Cyber liability: Designed to cover first- and third-party expenses resulting from a cyber attack on your business, like a data breach affecting your online payment processing system
• Professional liability: Can help cover legal expenses if you’re sued because your professional instruction or advice caused bodily injuries or property damage (e.g., if you teach workshops or give advice related to running a catering business)
• Excess liability limits: Increases your general liability aggregate limit if you have a larger business with more risk or need to meet contractual requirements
• Food trailer endorsement (if you use a food trailer): Extends your general liability coverage to bodily injuries and property damage that happen in or around your food trailer while parked and detached from a towing vehicle