Catering is a fast-paced occupation with a lot of fun and thrills, especially for those whose love cooking, engaging with people and have an entrepreneurial flair.
Winning a large catering job calls for a celebration—it’s a big achievement with the potential for a handsome payoff as well as an opportunity to market your business to a wide range of people.
But catering is not all about cocktail nights, weekend weddings and themed birthday parties. The occupation has also its fair share of risk—some that you may not have considered recently.
One of your staff can accidentally spill hot soup over guests. And you never know when a fire can breakout during the food prep at your client’s property.
No matter how good your catering services are or how tasty your food is, a guest may claim food poisoning.
Keep in mind that some claims are expensive enough to put you out of business. If you dispute the claim, you can be tried at the court which is also expensive to defend due to legal fees.
Having public liability insurance for caterer is as important as your culinary and marketing skills.
Public liability cover is important if you are held legally responsible for third party injuries or property damage. It may help cover the costs of third-party injuries or property damage caused by your business activities.
Hopefully, things will go right for you in your catering business, however if someone sues you for injuries and property damage caused by your business activities, you will thank your lucky stars that you have opted for PL insurance.
Given that catering involves dealing with the public, public liability insurance is one of the most important covers you should have.
Risks Covered by Public Liability for Caterers
Liability insurance protects you, should you be held legally responsible to pay for third party personal injury and property costs and damages.
If a liability claim is filed against you, your PL cover may pay off the costs spent on your legal defence.
Varying Levels of Cover:
You can choose the liability cover level of your choice which typically range from $5 million to $20 million. $10 million public liability cover is popular with sole traders and small business owners.
Property Damage Coverage:
Public Liability also protects you from accidents that damage a client’s or someone else’s property.
Public Liability Insurance Might Not Cover
- Injuries to Your Employees (as it is covered by worker’s compensation)
- Asbestos-Related Claims
- Punitive Damages
- Accident Caused by a Vehicle
- Poor advice
(NOTE: Make sure to read your insurance policy carefully as exclusions and inclusions can vary from listed here.)
Why Choose Multiple Quotes for Public Liability Insurance
Keep in mind that not all public liability insurance policies are created equal. The conditions and price of your policy might vary from one insurance policy to the next.
Compare quotes from different insurers to determine the feature and benefits as well as cost. A good insurance broker who is familiar with the catering industry can help do this for you.
How the Cost of Public Liability Insurance is Set
The cost of public liability insurance for caterers is set on various factors, including:
- Risk Factors (your specific catering business activities)
- The Size of Your Business
- Claims history
- The Number of Employees You Have
- The Location of Your Business
- Leven of cover chosen
- Excess selected
How to Choose Public Liability Cover for Your Catering Business
- Make sure the policy covers you all catering activities.
- Choose the right level of cover based on your business.
- Work with a good insurance broker. Take note of their client reviews and claim settlement records
No matter whether you are a small or large caterer, we live in a litigious society. You never know when something can go wrong, and you are held liable.
Having public liability is an important business investment to cover unexpected incidents and can provide peace of mind.
What do you think? Let us know by commenting below!
*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.
Romit Malhotra is the brand representative of Smart Business Insurance, a leading Australian insurance broker. A big foodie, he loves to travel the world. Also, a diligent businessman, Romit likes to pen down his thoughts on related topics whenever he finds some free time.