A chef in Fort Myers leaves a restaurant job to start a catering company. She rents time in a commercial kitchen, buys a used cargo van, books her first three weddings and hires four servers for the busy months. The first venue sends a page of insurance requirements, and she realizes that she does not know which of them she actually needs or what each one is for.
Catering touches more lines of insurance than most small businesses its size. It cooks like a restaurant, travels like a delivery company, serves alcohol like a bar, and works on someone else’s property like a contractor. The right program covers each of those exposures without paying for coverage the business does not use.
General Liability
General liability is the foundation. It covers injuries to guests, damage to other people’s property, and claims that a guest got sick from the food, which are covered under products and completed operations. For a caterer, the policy should be written for off-premises catering rather than as a restaurant policy, because most of the risk happens away from the kitchen. Limits are usually set by what venues require, commonly one million per occurrence and two million aggregate, and larger events and venues often ask for more through an umbrella.
Liquor Liability
Any caterer that sells or serves alcohol needs liquor liability. General liability excludes alcohol-related claims for businesses in the business of serving it, and host liquor coverage is not designed for a caterer running a bar. Our article on catering and off-premises alcohol service covers the details.
Commercial Auto
Vans and trucks used for catering need commercial auto. A personal auto policy will usually not cover a vehicle used regularly for business deliveries. If employees use their own cars to pick up supplies or deliver food, hired and non-owned auto coverage protects the business from claims arising from those trips.
Workers Compensation
Florida requires most employers to carry workers compensation, and the threshold for non-construction businesses is four or more employees, counting part-time workers. Catering crews grow quickly in wedding season, and event servers paid as independent contractors may still be treated as employees. Workers comp covers medical bills and lost wages for injured staff and is one of the most common requirements on a venue’s list.
Property and Equipment
A caterer with its own kitchen needs property coverage for equipment, improvements and inventory, plus spoilage and equipment breakdown for refrigeration. Equipment that travels to events, from chafers and warmers to tents and portable refrigeration, needs an inland marine floater, because a property policy covers it only at the listed location.
Umbrella
An umbrella adds limits above general liability, liquor liability, auto and employer’s liability. It is the most efficient way to meet venue requirements for higher limits and to protect the business against a large claim, such as a serious accident or a foodborne illness affecting many guests.
Other Coverages Worth Considering
Business income coverage replaces lost income after a covered loss at the kitchen. Employment practices liability covers claims from employees about harassment, discrimination or wrongful termination, which become more likely as staff grows. Cyber coverage matters for caterers that take card payments and hold client information online.
What Venues Will Ask For
Most venues require a certificate of insurance showing general liability, often liquor liability and workers comp, with the venue named as an additional insured, sometimes on a primary and noncontributory basis, and sometimes a waiver of subrogation. Our article on catering insurance requirements for Florida event venues explains each of those terms.
Worth Confirming
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General liability is written for off-premises catering
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Liquor liability is in place if you serve or pour alcohol
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Every vehicle is on a commercial auto policy, with hired and non-owned coverage
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Workers comp covers your full event staff
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Equipment that travels is on an inland marine floater
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An umbrella meets the highest limits your venues ask for
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You can issue certificates with additional insured endorsements quickly
Talk to Prestige Insurance Group
We build catering programs for Florida caterers starting out and growing, and place them with markets that understand off-premises events. 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.
