Catering Insurance
Catering insurance is an essential cover for any business offering hospitality services. This type of insurance will protect a business and its workers from damages arising from accidents that happen due to the use or consumption of goods or services, such as food that’s been incorrectly prepared. Many catering businesses operate in an environment where food safety is paramount.
The sale, preparation and serving of food is not always confined to established restaurants and cafes, but even now, the sale of packaged ready meals is now commonplace. Catering insurance will provide cover for any accidents that happen within your premises due to employees failing to act with care or reasonable care; or employees failing to regard fire safety regulations, health and safety legislation, and waste disposal procedures.
The purpose behind catering insurance is to prevent businesses from incurring significant losses due to third party claims, such as those made by unhappy customers if their food is contaminated.
Sole traders can also undertake it, and small businesses need to protect themselves from fines and penalties the law may impose on them for breach of health and safety legislation. If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Catering insurance can cover the following types of risk:
- Accidents that happen as a result of the consumption or preparation of food and drink that results in injury to customers
- Accident occurring to staff who are involved in preparing or serving food or drink
- Accidents involving customers due to something that happened on-premises, such as a fire, flood, leaking gas etc.
Many employers operating within the industry are either self-employed or operate as the sole trading directors of their business. In some cases, those working in the catering industry may be operating as a limited company. In some instances, a business will employ staff to help prepare and sell food and beverages. Still, it will be operated under a ‘cash-in-hand arrangement where no money is involved in other cases. The risk is often too significant for individuals or sole traders to handle in these situations, so professional insurance cover should be obtained from specialist catering insurance providers.
Here is an overview of some of the common types of catering insurance:
- Public liability: this type of insurance protects your business or business premises (and third parties who visit them) where people are injured on the premises. It also covers damage to any third party property, such as cars and shops windows, that you or any staff member has damaged.
- Product recall insurance: this type of insurance can help compensate retailers, suppliers and end-users of food products that need to be recalled.
- Accidental damage: this type of policy covers accidental damage occurring on your business premises, in your kitchen or any vehicle used by you or your employees.
- Contents cover: contents cover is similar to home insurance for business premises. These policies will cover damage or loss to the contents of your business premises caused by various risks, including accidental damage, fire or theft. Contents cover can help protect against the cost of replacing any stock you may have lost through vandalism, robbery or any other reason, including theft.
- Employers’ Liability Insurance: this is a legal requirement for any business that employs anyone else (in most jurisdictions), including workers who are self-employed. This is because it protects an employer against claims made by employees in the event of accident, illness or disease.
- Voluntary accidents & illness insurance: these are private policies that provide benefits to specific employees when they cannot work due to accidental injury or disease.
There are increased risks for catering businesses associated with the following situations:
- Risk of fire: catering businesses need to make a lot of use of a kitchen. This is a risk area for the business.
- Risk of contamination: food that has been contaminated will need to be disposed of – not just thrown in the bin, but put into an environmentally friendly waste disposal programme that involves incineration or other forms of biological breakdown.
- Risk of personal injury: while some staff members may suffer minor burns, cuts or bruises, other employees may suffer more severe injuries. Employers’ liability insurance does not cover cuts and burns, so many businesses will need to look at obtaining ‘personal accident insurance to protect their staff against claims made by an employee suing the company.
Personal accident insurance is designed to protect the business against claims made by employees who cannot work due to accidental injury or illness. It also protects the employee against a claim made by a third party due to their injury or illness. Personal accident insurance will pay out a lump sum to help cover the costs of an employee’s rehabilitation, the cost of any loss of earnings and even for any extra care that may be required.
Catering insurance provides peace of mind for businesses in this sector. It covers the risk of fire, contamination, personal injury and more. By purchasing catering insurance, businesses can comfort themselves, knowing that they can relax and focus on their core business operations rather than worrying about an emergency. Policies are typically tailored to the specific risks of the business and are highly customisable.
Find out more about catering insurance here.
Other useful links about business insurance:
Business Contents Insurance
Business Building Insurance
Employers’ Liability Insurance
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