You're loading catering trays into a venue when a guest walks into your hot box station and spills scalding soup on themselves. Or your server trips on an extension cord and drops a tray onto a bride's dress. Or someone has a severe allergic reaction to your signature dish despite asking if it contained nuts. Any of these scenarios could cost you tens of thousands of dollars in medical bills, legal fees, and settlements—potentially ending your catering business entirely.
This is exactly why general liability insurance exists for catering businesses. It's not optional coverage you get around to eventually—it's the financial foundation that protects your business from the everyday risks of working with food, people, and events. Here's what you need to know about GL coverage for your catering operation.
Why Catering Businesses Need General Liability Insurance
General liability insurance covers three critical exposures for catering businesses: bodily injury, property damage, and personal/advertising injury. In the catering world, these aren't abstract risks—they happen regularly.
Bodily injury claims occur when someone gets hurt because of your operations. A guest slips on spilled sauce near your serving station. Your assistant accidentally bumps someone with a hot pan. A venue worker cuts themselves on your equipment. Even if you did nothing wrong, you're still responsible for defending yourself against the claim—and that's where legal costs add up fast.
Property damage coverage protects you when your operations damage someone else's property. You stain the venue's carpet with red wine. Your chafing fuel scorches an antique table. Your equipment cart scratches the floor of a historic building. Venues will come after you for repairs, and those bills can reach five figures depending on what needs replacing.
For caterers specifically, product liability is the coverage component that keeps you up at night. This protects you if someone gets sick from your food or has an allergic reaction. Even with perfect food safety practices, cross-contamination happens. Suppliers make mistakes. Someone misreads a label. Product liability coverage within your GL policy covers the medical expenses and legal defense costs when foodborne illness claims arise.
Standard Coverage Limits and What They Mean
The industry standard for catering GL insurance is a $1 million per occurrence limit with a $2 million aggregate limit. Here's what those numbers actually mean in practice.
The per occurrence limit is the maximum your insurance will pay for a single incident. If one guest suffers severe burns requiring surgery and sues for $800,000, your $1 million per occurrence limit covers it. If they're awarded $1.2 million, you're personally responsible for that extra $200,000.
The aggregate limit is the total amount your policy will pay across all claims during your policy period (typically one year). You could have ten different incidents of $100,000 each, and once you hit that $2 million aggregate, your coverage is exhausted until your policy renews. This is why high-volume caterers often purchase higher aggregate limits—more events mean more exposure.
Many venues and corporate clients require $2 million per occurrence coverage or even higher. Luxury hotels, large corporations, and wedding venues in major metropolitan areas frequently demand $2 million/$4 million or even $5 million/$10 million limits. You'll see these requirements spelled out in catering contracts, and you cannot book the event without meeting them.
Defense costs are covered in addition to your limits with most GL policies. If you're sued for $500,000 and it costs $150,000 in legal fees to defend yourself, your insurer pays both—the defense costs don't eat into your $1 million per occurrence limit. This is crucial because even frivolous lawsuits cost serious money to defend.
The Reality of Certificates of Insurance
Here's something most new caterers don't realize until they book their first venue event: you'll need to provide a certificate of insurance showing the venue as an additional insured, and you'll need it before you're allowed through the door.
A certificate of insurance (COI) is a one-page document your insurance company provides that proves you have coverage. It lists your policy limits, coverage types, effective dates, and—critically—can name specific venues or clients as additional insureds for specific events.
When a venue is listed as an additional insured, your policy extends to cover them if they get sued because of your operations at their location. For example, if a guest sues both you and the venue claiming the venue was negligent for allowing unsafe catering practices, your GL insurance defends the venue as well. This is why venues require it—it protects them financially.
Most insurance companies can issue certificates within 24-48 hours, and many now offer instant certificate generation through online portals. You'll request a new certificate for each venue or event that requires one, listing the venue's legal business name and address exactly as specified in your contract. Get this process wrong and you might be turned away at setup, losing the entire event.
What General Liability Doesn't Cover
General liability is essential, but it's not comprehensive coverage. Understanding what it doesn't cover prevents expensive surprises when you file a claim.
Employee injuries aren't covered by GL—that's what workers' compensation insurance handles. If your prep cook burns themselves or your server hurts their back lifting equipment, those medical bills and lost wages are covered under workers' comp, not general liability. Most states legally require workers' comp if you have employees, making it non-negotiable.
Your own property and equipment aren't protected by GL either. If your refrigerated truck breaks down and spoils $5,000 worth of prepared food, or someone steals your equipment from an event, general liability won't reimburse you. You need commercial property insurance for fixed locations and inland marine coverage (also called equipment floater insurance) for mobile equipment and inventory.
Professional errors and mistakes in service quality aren't covered. If you promise a five-course meal and only deliver four courses, or if you show up two hours late and ruin someone's wedding reception, the client might sue for breach of contract or negligence. That's covered by professional liability insurance (also called errors and omissions insurance), not general liability.
Vehicle accidents while driving to events require commercial auto insurance. If you hit another car while transporting food to a venue, your personal auto policy likely won't cover business use. You need a commercial auto policy that specifically covers business operations.
How Much Does Catering GL Insurance Cost?
Annual premiums for catering general liability insurance typically range from $500 to $2,000 for small to mid-sized operations with standard $1 million/$2 million coverage limits. Your specific cost depends on several factors.
Annual revenue is the biggest pricing factor. A part-time caterer doing $50,000 in annual sales will pay significantly less than an established company doing $500,000. Insurers use revenue as a proxy for exposure—more sales means more events, more guests served, and more opportunities for claims.
Employee count matters because more workers mean higher liability exposure. Solo caterers pay less than companies with ten employees. Number of events and guest counts also factor in—catering 100 intimate dinner parties has different risk than catering ten massive corporate events.
The types of events you cater influence pricing as well. Wedding catering typically costs more to insure than corporate lunch delivery because weddings involve alcohol service (higher injury risk), emotional stakes (higher litigation likelihood), and valuable property (expensive venues and attire). Caterers who serve alcohol usually see 10-20% higher premiums.
Your claims history dramatically impacts cost. Caterers with previous liability claims pay substantially more than those with clean records. This is why risk management practices—proper food handling, staff training, venue walkthroughs—aren't just good business, they're cost control measures for insurance.
Getting Started with General Liability Coverage
Most catering businesses purchase GL insurance as part of a Business Owner's Policy (BOP), which bundles general liability with commercial property coverage at a discounted rate. If you have a commercial kitchen or office space, a BOP usually makes financial sense. If you operate entirely mobile or from home, standalone GL coverage is the better option.
When shopping for coverage, get quotes from multiple insurers that specialize in food service businesses. General business insurers often don't understand catering risks well and may either decline coverage or overprice it. Specialized food service insurers know the industry, offer appropriate coverage options, and price more competitively.
Before you call for quotes, gather your business information: annual revenue projections, number of employees, types of events you cater, whether you serve alcohol, your commercial kitchen address, and any required coverage limits from venue contracts. Having these details ready speeds up the quoting process significantly.
General liability insurance isn't glamorous, but it's the financial foundation that lets you focus on what you do best—creating memorable food experiences. One foodborne illness claim or venue damage incident without coverage could end your business permanently. With proper GL insurance in place, you can accept venue requirements, protect your personal assets, and grow your catering operation with confidence.
