Running a catering business means juggling a lot of moving parts—literally. You're transporting food, setting up at venues you don't control, serving hundreds of guests, and hoping nothing goes wrong. But here's the reality: things do go wrong. A guest gets food poisoning. Your server trips and damages the venue's antique table. Your delivery van gets into an accident on the way to a wedding. Without the right insurance, any of these scenarios could put you out of business.
This checklist breaks down exactly what coverage you need, what's optional, and when to review your policies. Think of it as your roadmap to protecting everything you've built.
Essential Coverage: What Every Catering Business Needs
These aren't optional. If you're catering events professionally, you need these coverages in place before you serve your first plate.
General Liability Insurance
This is your foundation. General liability protects you when a guest gets sick or injured at an event, or when you accidentally damage a client's property. Most event venues and planners won't even let you through the door without proof of general liability coverage—typically at least $1 million per occurrence and $2 million aggregate. The average cost runs about $68 to $89 per month, which is a small price compared to a single lawsuit.
Product Liability Insurance
You're in the food business, which means you're one undercooked chicken breast away from a serious claim. Product liability covers incidents caused by your food—foodborne illness, allergic reactions from unlabeled allergens, or contamination issues. The good news? This coverage is automatically included with most general liability policies for caterers. Make sure your policy specifically mentions products-completed coverage.
Workers' Compensation Insurance
If you have employees, this isn't optional—it's legally required in most states. Catering is physically demanding work. Your team is lifting heavy equipment, working with hot surfaces, and moving quickly in tight spaces. Workers' comp covers medical expenses and lost wages when someone gets hurt on the job. Expect to pay around $74 per month on average, though your actual cost depends on your payroll size and claims history.
Commercial Auto Insurance
If you're using vehicles to deliver food, transport equipment, or travel to events, you need commercial auto coverage. Your personal auto policy won't cover business use. Most states require this coverage for business-owned vehicles, and it covers medical expenses and property damage if you or an employee are in an accident while driving for work. Don't skip this—one accident while hauling equipment to a wedding could bankrupt you without it.
Optional Coverage: When to Add More Protection
These coverages aren't always required, but they can save your business depending on what services you offer and how you operate.
Liquor Liability Insurance
If you serve alcohol at events, you need this coverage. Period. Liquor liability protects you if a guest becomes intoxicated and injures themselves, someone else, or causes property damage. Your general liability policy specifically excludes alcohol-related incidents, so this is a separate add-on. Many high-end venues require proof of liquor liability before they'll let you serve drinks on their premises.
Commercial Property Insurance
This covers your physical assets—your building (if you own one), kitchen equipment, inventory, and supplies—against fire, theft, or vandalism. If you operate out of a commercial kitchen or own expensive equipment like industrial ovens, refrigerators, and serving equipment, this coverage helps you get back on your feet after a disaster. Many caterers bundle this with general liability in a Business Owner's Policy (BOP), which averages around $99 to $141 per month.
Equipment Breakdown Insurance
Your refrigerator dies the night before a 200-person wedding. Your commercial oven stops working mid-prep. Equipment breakdown coverage pays to repair or replace essential equipment when it fails, which is critical in a business that depends on functioning appliances. This is often available as an add-on to your commercial property policy.
Business Income Insurance
If a covered property loss forces you to temporarily close—say, a fire damages your commercial kitchen—business income insurance replaces lost revenue while you're getting back up and running. This coverage is typically included in a BOP and can be the difference between weathering a setback and closing your doors permanently.
When to Add or Adjust Coverage
Your insurance needs change as your business grows. Here's when to revisit your coverage:
When you start serving alcohol: Add liquor liability before your first event with a bar service. When you hire your first employee: Workers' comp becomes mandatory. When you buy or lease a vehicle: Commercial auto coverage is required immediately. When you sign a high-value contract: Larger events may require higher liability limits—sometimes $2 million per occurrence instead of $1 million. When you expand your kitchen or buy expensive equipment: Increase your commercial property limits to match your current asset value.
Annual Review Items: Your Insurance Maintenance Checklist
Set a reminder to review your coverage every year, ideally at renewal time. Here's what to check:
Revenue changes: If your annual revenue has increased significantly, your coverage limits may need to increase too. Payroll changes: Workers' comp premiums are based on payroll, so update your insurer if you've added staff. Equipment inventory: Add newly purchased equipment to your property coverage and remove items you've sold or retired. Contract requirements: Review venue and client contracts to ensure your limits still meet their requirements. Claims history: If you've had claims, discuss whether you need additional coverage or risk management strategies.
How to Get Started
Getting the right catering insurance doesn't have to be complicated. Start by gathering basic information about your business: your annual revenue, number of employees, types of events you cater, whether you serve alcohol, and what equipment you own. Then get quotes from carriers that specialize in food service businesses—they understand your unique risks better than general business insurers.
Most caterers find that bundling general liability and commercial property into a BOP saves money compared to buying policies separately. And don't just go with the cheapest option—read the exclusions carefully. Some policies have restrictions on certain types of events, food preparation methods, or venues that could leave you exposed when you need coverage most.
The catering business is rewarding, but it comes with real risks. The right insurance checklist ensures you're protected from day one and that your coverage grows with your business. Take the time now to get it right, and you'll have peace of mind knowing you can focus on what you do best—creating memorable events with amazing food.
