A caterer in Tallahassee sets up for a university alumni dinner in a historic ballroom. A server rolling a loaded cart catches a decorative column base and cracks it, a portable burner scorches the hardwood floor near the buffet, and a rented warming oven falls off the van ramp on the way home. The caterer files all three with its general liability carrier and learns that only one of them is likely to be paid in full.
Catering policies are built for a business that moves from venue to venue, but the standard forms were written for businesses that stay in one place. The gaps between the two are predictable, and most of them can be closed if they are found before an event.
Alcohol You Serve or Sell
General liability policies exclude injuries and damage caused by alcohol when the insured is in the business of serving or selling it. A caterer that runs bars at events needs liquor liability coverage. Host liquor coverage, which comes with most general liability policies, is meant for businesses that serve alcohol incidentally. Our article on catering and off-premises alcohol service covers where caterers get caught.
Damage to the Venue You Are Working In
General liability covers damage to property owned by others, but it excludes damage to property in the insured’s care, custody or control, and damage to the particular part of a property the insured is working on. A caterer’s kitchen area, buffet station and prep space at a venue can fall into those exclusions. Broader wording, damage to rented premises coverage with an adequate limit, or a specific endorsement can narrow the gap. Venue contracts that make the caterer responsible for any damage, regardless of fault, make this more important.
Rented and Owned Equipment
General liability does not cover the caterer’s own equipment, and it usually does not cover equipment rented from a party rental company either. Chafers, tents, linens, ovens and refrigeration damaged or stolen at an event need an inland marine or equipment floater. Rental contracts often make the caterer responsible for full replacement cost, which is more than many caterers expect.
Food Spoilage and Equipment Breakdown
A refrigeration unit that fails overnight before a wedding can ruin thousands of dollars of food. Spoilage from a mechanical breakdown or power outage is not covered by a standard property policy without a spoilage endorsement, and equipment breakdown coverage is a separate addition. Food in transit in a vehicle is a separate question from food at the commissary.
Your Own Employees and Vehicles
Injuries to the caterer’s own staff are excluded from general liability and belong under workers compensation. Accidents involving vans and trucks are excluded from general liability and belong under commercial auto. Employees who use their own cars for catering errands create an exposure that needs hired and non-owned auto coverage.
Event Cancellation and Lost Deposits
When a hurricane, a venue problem or a client’s change of plans cancels an event, the resulting financial loss is not covered by general liability. Event cancellation insurance is typically bought by the client or the event organizer, and the caterer’s protection usually lies in its contract and deposit terms rather than its insurance.
Promises in the Contract
Many venue and client contracts include indemnity clauses that make the caterer responsible for claims beyond its own negligence. Contractual liability coverage in a general liability policy covers some of these promises, but not all. An indemnity agreement that goes further than the policy’s insured contract definition leaves the caterer personally responsible for the difference.
Fines, Penalties and Health Department Actions
Fines from health inspections, licensing penalties and the cost of a temporary closure ordered by the health department are not covered by general liability. Business income coverage only responds to physical loss or damage, so a closure for a sanitation violation is usually uninsured.
Worth Confirming
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Liquor liability is on the policy if you serve or pour alcohol
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Damage to rented premises has a limit that matches your venue contracts
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Owned and rented equipment is covered by an inland marine floater
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Spoilage and equipment breakdown are endorsed for your refrigeration
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Every vehicle is on a commercial auto policy, with hired and non-owned coverage
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Indemnity clauses in your contracts fit your policy’s contractual liability
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Your contracts address cancellations and deposits
Talk to Prestige Insurance Group
We review Florida caterers’ policies against the contracts they sign and the events they work, and close the gaps before a claim finds them. Our catering company insurance page covers the full program.
Call the office nearest you. Se habla español.
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Miami: 305-969-8776
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Orlando: 407-993-2331
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Stuart: 772-247-3788
Related Resources
This article is general information, not legal advice. Coverage depends on the actual policy language, endorsements and conditions involved. Prestige Insurance Group, Florida agency license L057894.
