Do I need catering insurance?
Catering insurance is there to protect you and your business if things go wrong. While it may not be a legal requirement, depending on your set-up it can save you a lot of stress and money to have the right protection in place.
Here we look at the kinds of business insurance you might want to think about if you’re a:
Caterer – providing food for functions like weddings or business meetings
Snack food/fast food/street food vendor – selling from a stall, van or trailer
Pub, restaurant and café owner – offering fixed site/static catering services from a kitchen
How does catering insurance protect me and my business?
Even with the best intentions in the world, mistakes happen, and events can take an unexpected turn for the worse. Catering insurance can protect you from the wide range of risks associated with food preparation and serving.
Some of the challenges that may arise include:
Someone having an allergic reaction or getting food poisoning from the food you serve
Kitchen equipment breaking, being damaged or stolen
An employee injuring themselves at work
A member of the public getting injured by your equipment
Hot food or drink spilled on a customer or guest
A fire or flood that makes your workspace unusable.
Depending on the policy you choose, you may be protected against some or all of these eventualities.
What sort of catering business insurance should I consider?
There are a number of different insurance policies that can help protect your catering business. Always read the small print to ensure you’re getting the cover you need.
Employers’ liability insurance could cover you if one of your employees becomes ill or is injured as a result of working for you. If you employ one or more people or are a limited company with multiple directors, it’s a legal requirement to have cover.
If you’re not a limited company, it’s not a legal requirement to have employers’ liability insurance if the employees are immediate family members. If a policy is in place, though, it will still cover immediate family members working for you.
Public liability insurance could cover you if someone other than an employee is injured or their property damaged because of your business. For example, if a customer trips over a loose cable, or if you accidentally spill a drink over their computer.
Product liability insurance may provide cover if somebody falls ill because of a product you’ve sold. For example, if they suffer from food poisoning after eating food you’ve provided.
Business contents insurance can protect valuable kitchen equipment and appliances against theft, fire or damage. Check with the insurance provider whether the policy includes hired equipment and perishables like food.
If you own your catering business premises, you’ll also need to consider commercial property insurance. As well as the cost of repairing or rebuilding the structure, this covers any permanent fixtures and fittings in the kitchen and bathroom. You may find all the catering insurance you need from one specialist provider who offers a package, or the best-value protection for you might come from several different sources. Compare quotes from leading business insurance providers to find the price and level of cover that works for you.
What other types of catering insurance might I need?
Potentially useful additions to your catering business cover include:
Business Interruption insurance – could help to cover any loss of income while your catering business is unable to operate.
Income protection – which may pay out if you can’t work due to an injury or illness. This could be particularly helpful if you work alone but want extra security for you and your family.
Business van insurance – if you run a mobile catering company, this can protect your delivery van or food truck.
If you’re a restaurant owner, you may also want to think about:
Cyber and data insurance – if your booking system is hacked - putting the privacy of your customers at risk and making it impossible to take bookings online - this can offer you protection. It may also cover you if you or an employee make a mistake. We don’t currently offer comparison for this on the Compare the Market website.
Legal protection insurance – if you dismiss an employee and they take you to an employment tribunal, this could help you cover expenses.
Do you need flexible catering insurance cover?
Some catering insurance policies are more flexible than others. If you’re a new or small business, you might want cover that can grow with you, and allow you to expand, whether that means moving to a new venue or taking on more staff.
How do I get catering business insurance?
Compare quotes from insurance providers with us. When you fill out our online form, you can tailor it so your search results will be specific to your catering business.
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With over 10 years’ experience writing, editing and managing content, Emma has written and edited for some of Australia’s leading financial comparison brands, including Savings.com.au, Your Investment Property Magazine, and Your Mortgage.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
