How much does catering insurance cost?

Caterers pay an average of $81 per month for a business owner’s policy (BOP), or $972 annually.

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.

This is the average business owner's policy for caterers who buy from Insureon:

Premium cost: $81 per month
Policy limit: $1 million per occurrence, $2 million aggregate
Policy deductible: $1,000

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.

Caterers pay an average premium of $42 per month, or $500 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:

Premium cost: $42 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.

The average cost of workers’ compensation insurance for an event catering business is about $90 per month, or $1,084 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.

The average cost of a liquor liability insurance policy for a caterer is about $65 per month, or $780 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:

Premium cost: $65 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 that 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.

The average cost of commercial auto insurance is about $164 per month for caterers, or $1,963 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.

Small businesses pay an average of $145 per month, or $1,740 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.