Catering Insurance: What risks does your business face?
Companies in the catering industry face a number of risks on a daily basis, from injured employees to broken equipment to unhappy customers. With so many risks to look out for during the day-to-day running of your company, it is recommended that you invest in insurance coverage. Find out about the different types of insurance policies available, and how each could protect your catering company from damaging claims.
What insurance do you really need?
Catering Product Liability
This form of catering liability insurance protects your business from claims made by customers who fall ill from a product you served them. Product liability will help with the financial impact of the claims made against your business, such as legal costs or compensation, preventing your company from coming into any financial difficulty as a result of a claim.
Employer’s Liability
This policy is required by the law for catering businesses that have employees working for them, whether they are full time, part time or even temporary. This policy covers legal defence costs and claim settlements if your employees ever injure themselves or become ill at work. As not all injuries or illnesses show symptoms immediately, employer’s liability insurance will cover you even if ex-employees decide to claim compensation.
Equipment Coverage
This cover protects the contents of your company. For example, if you use an industrial-sized kitchen, this will require protection against mechanical failures, power surges or electrical shorts, which could result in your inability to provide service and lose business income. Equipment coverage can also cover the costs of contents that are stolen.
Personal Accident Coverage
This catering insurance policy can provide reassurance to you and your employees, should one of you experience an injury at work. From temporary injury to permanent disability, this type of coverage will ensure that the injured person continues to get paid while they are unable to work. As people tend to worry when they face injuries which prevent them from working, this policy provides security of income. It would be part of a weekly payout for a temporary injury (like breaking a leg or spraining a wrist) or a lump sum payout for permanent disability.
