Get free quotes for catering insurance
Save money by comparing insurance quotes from multiple carriers.
Choose from the nation's best insurance providers
Why do caterers need insurance?
As a caterer, you’re always on the move. As such, you’re used to planning for the unexpected. The best catering business insurance fulfills that same goal by guarding against the costs of personal injury lawsuits, food spoilage, and other incidents anywhere you go.
One application, multiple quotes
Insureon helps caterers find insurance policies that match their unique risks and budget.
Get custom quotes from top-rated carriers with our easy application.
What types of business insurance do caterers need?
These policies provide coverage for the most common risks of catering.
Business owner’s policy
A BOP bundles commercial property insurance and general liability coverage under one plan. It's a popular policy for caterers, and often one of the most economical options.
BEST FOR
- Customer injuries
- Damaged business property
- Business interruption incidents
Workers’ compensation insurance
Most states require workers' comp for catering businesses with employees. It also protects sole proprietors from work-related injury costs health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Employers' liability coverage
General liability insurance
This policy covers common catering services risks, including public liability concerns like customer injuries, property damage, and advertising injuries. Plus, it’s required for most commercial leases.
BEST FOR
- Slip-and-fall accidents
- Damaged customer property
- Product liability insurance
Commercial auto insurance
This insurance for mobile catering businesses helps pay for legal expenses and property damage when a vehicle gets in an accident. It also covers theft and repairs due to weather or vandalism.
BEST FOR
- Physical damage and collision coverage
- Injuries caused to another person
- Repairs due to vandalism or weather
Liquor liability insurance
This insurance covers the cost of property damage and bodily injuries caused by an intoxicated patron who was served by your catering company.
BEST FOR
- Injuries caused by intoxicated patrons
- Property damage from intoxicated patrons
- Legal costs for liquor liability lawsuits
Cyber insurance
This policy helps catering businesses recover from cyberattacks and data breaches. It's recommended for any business that stores customer information.
BEST FOR
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
Looking for different coverage? See more policies.
How much does catering insurance cost?
A small catering business will pay less for commercial insurance than a larger company with several employees.
Average catering business insurance costs include:
- General liability: $45 per month
- Workers' comp: $82 per month
- Commercial auto: $204 per month
Catering companies typically pay an average of $96 per month for a business owner's policy, which bundles liability and property coverage. Factors such as your operations, industry risks, and client interactions will affect your premiums.
What factors affect catering insurance costs?
The cost of your catering business insurance coverage depends on several factors. Businesses with higher exposures typically pay more for coverage, while those with fewer risks may qualify for lower premiums.
Common factors that can affect catering insurance costs include:
- The types of food and beverages served: Caterers that prepare high-risk foods, serve alcohol, or handle large-scale events may face greater liability exposures, which can increase insurance costs.
- Property and equipment: The value of your cooking equipment, food storage units, serving supplies, and other business property can affect the cost of your property coverage, BOP, and tools and equipment policy.
- Annual income: Businesses with higher revenue often have greater exposure to liability claims and may require higher coverage limits.
- Location: Insurance costs can vary based on where your business operates. Local regulations, crime rates, weather risks, and the cost of claims in your area can all impact premiums.
- Business operations: Factors such as whether you operate from a commercial kitchen, travel to multiple event locations, offer delivery services, or cater large events can influence your risk profile.
- Number of employees: Businesses with more employees generally pay more for workers' compensation and may face increased liability exposures.
- Policy limits and deductibles: Higher coverage limits typically increase premiums, while choosing a higher deductible can help reduce your monthly insurance costs.
- Claims history: Businesses with a history of filing insurance claims may pay higher rates than those with a few or no claims.
How do I get the best catering insurance coverage?
It's easy to get insurance for your catering company, food truck, or food vendor business if you have your company information on hand. Our application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance (COI) with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right insurance coverage for your catering business, whether you work independently or hire employees.
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
FAQs about insurance for catering businesses
Take a look at answers to common questions about insurance for caters and more.
What licenses does a catering business need?
Licensing requirements for catering businesses vary by state and local jurisdiction, but most caterers need several permits before they can legally operate. Common requirements include:
- A business license
- A sales tax permit
- A food handler's permit or certification
- A food service establishment license
- Health department permits and inspections
- A liquor license if alcohol is served or sold
- Special event permits, depending on the venue or event type
Additional licenses may be required based on where your business operates, whether food is prepared in a commercial kitchen, and the types of services you provide. It's important to check with your state and local government agencies to determine what requirements apply to your business.
Do I need catering liability insurance if an event space already has coverage?
Yes, because while some event venues may extend limited coverage to vendors or allow caterers to be added as an additional insured, that coverage may not fully protect your business.
Venue policies are designed to protect the venue's interests and often have coverage limitations, exclusions, or shared policy limits.
Carrying your own general liability insurance can help protect your catering business if you're accused of causing bodily injury, property damage, or advertising injury. Many venues also require caterers to provide a certificate of insurance before working an event.
Is liquor liability insurance for catering businesses required?
If your catering business serves, sells, or distributes alcohol, you may need a liquor license depending on state and local laws. Many event venues, clients, and contracts also require proof of liquor liability insurance before allowing alcohol service.
Even when it isn't legally required, liquor liability insurance is an important safeguard.
It can help cover legal expenses, settlements, and judgments if your business is held responsible for alcohol-related incidents, such as injuries or property damage caused by an intoxicated guest.
Do I need mobile catering insurance when traveling to events?
Many caterers transport food, supplies, and expensive equipment to event locations. Maintaining coverage that protects mobile operations is essential for businesses that regularly travel between venues.
Tools and equipment coverage, also called inland marine insurance, can help protect cooking equipment, serving supplies, portable refrigeration units, and other business property while in transit or temporarily stored off-site. Catering companies may also need commercial auto coverage for business-owned vehicles used to transport food and equipment.
What other types of insurance do caterers need?
In addition to general liability, many catering businesses benefit from other forms of coverage as part of their risk management strategy, including:
- Commercial property insurance: Covers damage to your commercial kitchen equipment, inventory, supplies, and other business equipment from covered events such as fire, theft, or certain weather-related incidents. If you don't own a fixed business location, then business personal property (BPP) insurance would provide protection for your catering equipment and goods.
- Business interruption insurance: Also called business income coverage, this policy helps replace lost wages and income, as well as pay ongoing expenses if your catering services must temporarily stop due to a covered property claim, such as a burst pipe or severe storm.
- Product liability insurance: Sometimes referred to as products-completed operations coverage, this policy helps safeguard your business from claims that a food item or beverage you made caused a bodily injury—such as an allergic reaction—or damaged a customer's belongings. It'll help pay your legal fees, judgment, or settlement.
- Food spoilage coverage: Helps cover the cost of replacing spoiled inventory due to covered events such as power outages or equipment breakdown failures. Some policies may also help with expenses related to contamination incidents, product disposal, business interruption, and other associated losses.
- Food contamination coverage: Handles costs related to contaminated food, including product recalls, disposal and replacement of affected inventory, customer foodborne illness notifications, lost income, and certain cleanup or public relations expenses.
- Employment practices liability insurance (EPLI): Helps protect your business against employee claims involving wrongful termination, discrimination, harassment, retaliation, or other workplace-related allegations.
- Hired and non-owned auto (HNOA) insurance: Covers liability claims that may arise when employees use rented, leased, or personal vehicles for business purposes, such as catering deliveries, supply runs, or transporting equipment to events.
How do I find affordable insurance for a catering business?
Several factors can help lower insurance costs for catering businesses. Maintaining a safe work environment, implementing food safety procedures, training employees, and keeping a clean claims history can help reduce risk and improve pricing.
The best place to start is by comparing free business insurance quotes from leading insurance companies through Insureon’s online application. If you're unsure what types of catering business insurance policies you need, our licensed insurance agents can help make sure you get the right, affordable coverage for your insurance needs and peace of mind.
You may also be able to save money by:
- Bundling policies into a BOP
- Choosing higher deductibles
- Maintaining proper food handling certifications
- Limiting unnecessary coverage endorsements
- Reviewing coverage annually to ensure limits align with your business needs
Most small businesses can get insured and download a certificate of insurance (COI) within hours of applying for quotes.
The average costs on this page were derived from our data on small business owners in the catering field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.