How much does catering insurance cost?
Average caterer insurance costs for top policies
Here are the top insurance policies purchased by caterers and their average monthly costs:
- Business owner's policy (BOP): $96 per month
- General liability insurance: $45 per month
- Workers' compensation insurance: $82 per month
- Liquor liability insurance: $28 per month
- Commercial auto insurance: $204 per month
- Cyber insurance: $129 per month
Our figures are sourced from the median cost of policies purchased by Insureon catering customers. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
Business owner’s policy
Caterers pay an average of $96 per month, or $1,155 annually, for a business owner’s policy (BOP).
A BOP bundles general liability insurance with property insurance, usually at a discounted rate. This policy often includes insurance endorsements, such as business interruption insurance or equipment breakdown coverage. Caterers who store perishable ingredients may also want to add spoilage insurance to their BOP to cover inventory lost to power outages or equipment failure.
This is the average business owner's policy for caterers who buy from Insureon:
Insurance premium: $96 per month
Policy limit: $1 million per occurrence, $2 million aggregate
Deductible: $500
The cost of a business owner's policy is determined by your catering business's location, operations, and value of business property. Caterers with high-value equipment and furnishings tend to pay higher premiums.
Not all caterers qualify for a business owner’s policy. Check with your Insureon agent to find out if your catering business is eligible.
General liability insurance
Caterers pay an average premium of $45 per month, or $537 annually, for general liability insurance. This policy protects catering companies against customer bodily injuries and customer property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend purchasing a business owner’s policy, which is an insurance package that bundles general liability coverage with commercial property insurance at a discounted rate. A BOP protects both your own business property as well as against common third-party risks.
This is the average general liability policy for caterers who buy from Insureon:
Insurance premium: $45 per month
Policy limit: $1 million per occurrence, $2 million aggregate
Learn more about how your insurance premium is calculated, cost information, and how to save money on your general liability coverage.
Workers’ compensation insurance
The average cost of workers’ compensation insurance for an event catering business is about $82 per month, or $986 annually. The cost of a policy varies significantly depending on the state and your business operations.
Workers’ compensation insurance is required in almost every state for catering companies with employees. This coverage helps pay medical costs and lost wages for employees who are injured on the job. Most policies include employer’s liability insurance, which protects catering business owners against lawsuits related to workplace injuries.
Because health insurance plans can deny claims for injuries related to your job, workers' compensation coverage is also recommended for sole proprietors.
The cost of workers' comp depends on several factors, primarily the size of your staff and their occupational risks. You can save money on workers' comp coverage by classifying your workers correctly and implementing a risk management plan to minimize work-related injuries.
Liquor liability insurance
The average cost of a liquor liability insurance policy for a caterer is about $28 per month, or $339 annually. This type of insurance protects catering companies from liability claims related to serving alcohol. In some jurisdictions, your catering business might need liquor liability coverage in order to obtain a liquor license.
This is the average liquor liability policy for caterers who buy from Insureon:
Insurance premium: $28 per month
Policy limit: $1 million per occurrence, $2 million aggregate
What's more, many states have dram shop laws that hold a business liable for any damages caused by intoxicated customers who were served by your staff. This can make this coverage all the more important to protect businesses against the expensive legal fees and other financial losses from an incident.
Learn how to save money on your policy, which coverage options to choose, and how liquor liability costs are calculated.
Commercial auto insurance
The average cost of commercial auto insurance is about $204 per month for caterers, or $2,445 annually. This insurance covers medical expenses related to injuries and property damage costs if someone driving your catering vehicle is held liable for an accident. It also covers vehicle theft, vandalism, and damage caused by weather.
Most states require this type of insurance for vehicles owned by your catering business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.
The cost of commercial car insurance depends on several factors, including the policy limits you choose, claims history, the number and value of your vehicles, and the driving records of anyone permitted to drive. Learn how insurers calculate your premium and how to save money on commercial auto coverage.
Cyber insurance
Small businesses pay an average of $129 per month, or $1,552 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.
Cyber insurance helps caterers recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other costs necessitated by state data breach laws.
The cost of cyber insurance depends on the amount of personal information handled by your catering business, such as customer credit card numbers, along with the number of employees who can access that information.
How are caterer insurance costs calculated?
Caterer insurance coverage costs are determined by several factors. While underwriting your policy, insurance companies will consider the following when calculating insurance rates:
- Types of food and beverages served: Catering businesses may see elevated premiums if they offer higher-value products or services, such as full-service wedding catering, as opposed to caterers that serve food only.
- Business property and catering equipment: Caterers that work with higher-value kitchen equipment are likely to see higher premiums. Also, any equipment that is frequently used could cost more to insure than items that are used less often.
- Location: If your catering company operates in an area that is more prone to natural disasters, high foot traffic, or elevated crime rates, you may have to pay higher insurance premiums than a business located in an area where these factors are less present.
- Number of employees: If your catering business has any employees on staff, you could see higher insurance costs as there are more opportunities for accidents to happen or for potential damage to occur to a customer's property.
- Business size and revenue: Insurance companies may assume caterers are making more money and will also face increased customer exposure, which can generate higher premiums.
- Coverage limits and deductibles: Catering companies with higher coverage limits and lower deductibles on their insurance policies will typically see their premium costs increase, while lower limits and a higher deductible can help keep their rates lower.
- Type of business operation: A self-employed catering business owner may not have to pay as much for insurance as a larger catering company with a dedicated business location and multiple employees.
- Types of insurance coverage purchased: Some policies are required for caterers to obtain contracts or certifications. These required policies often are needed to cover more expensive accidents and lawsuits, and tend to cost more than basic coverages.
- Claims history: A caterer with a lengthy list of previous insurance claims will likely pay more for insurance than a catering business with no claims history.
How do I get catering business insurance?
Insureon can help caterers, banquet halls, bakeries, restaurants, food trucks, and other food businesses find affordable insurance coverage, whether you work independently or hire employees.
To get started, all you need is your business information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. Then, you can buy a policy online with Insureon in three easy steps:
- Fill out a free online application with details about your business.
- Compare custom quotes from top-rated U.S. insurance companies.
- Select a policy and pay the premium to begin coverage.
Our licensed insurance agents are available to answer questions about your caterer insurance costs, state insurance requirements, and the best types of coverage for your specific insurance needs.
Once you've bought the caterer insurance policies you need, you can download a certificate of insurance (COI) for proof of coverage. Most small business owners can get insured within 24 hours of applying for quotes.
What our customers are saying
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.
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