Run anything from a corporate outside
catering business to a cake shop, mobile chip shop, hamburger stall or
even an ice cream van and you will need insurance! A caterer in the UK faces a demanding
and challenging trade, as do caterers around the world. The skills
necessary to become a caterer vary and include being a excellent cook, a
knowledgeable and friendly communicator, a talented sales person and a
top-notch business person. A good caterer needs to be organized and have
a good business plan that includes insurance cover.
Insurance Caterers Should Consider
Whilst Public Liability and Product
Liability Insurances are not mandatory for caterers, it is a very good
idea to have them. Catering Public Liability Insurance will cover claims
against you made by other businesses of members of the public should
damage occur to their property or illness occur because of the food
served. Most caterers have different types of cover, because with
Catering Public Liability, you or your business may be liable to any
claim as well as legal fees involved. Most Catering insurances will
likely cover claims and legal expenses that are associated with the
claim, and there are various options to increase cover in certain
Product Liability Insurance will cover any compensation that is awarded because you or your company caused damage to a property of caused a personal injury as a result of someone using (consuming) your product. This includes things like contaminated food, no label warnings, food poisoning, etc. Product Liability is usually included in a Public Liability package.
If you have one or more staff working
for you it is mandatory that you have Employment Liability Insurance.
This insurance will likely cover you should one or more of your
employees becomes ill or is injured whilst working for you. If an
employee is no longer working for you but can prove an illness he has is
due to employment by you, you are still liable. For this reason, you
must keep accurate and updated records of all past and present
Specifics to Various Catering Insurance Policies
A typical policy for a catering trailer
might include accidental damage, fire and theft, theft and fire or fire
and accidental damage or just accidental damage. Optional cover might
include material damage to a trailer, stock including items like frozen
foods, business interruption, money cover and liability insurance.
Outside Caterers and Liability Insurance
Insurance for Outside Caterers including Liability Insurance usually offers certificates for event organisers. These certificates can often be accessed via the insurance company's Internet site. The policy usually covers Public Liability Insurance at £5m and Product Liability for £5m. If requested Public and Product Liabilities can be increased to £10m. Optional cover can be purchased for business equipment, stock, attempted theft or theft from a road vehicle that is unattended.
Catering Van Insurance
Catering Van Insurance is a scheme that covers Mobile Shops and Hot Food Vans. It offers extensions, which are relevant to these particular types of catering businesses. Policy wording usually covers a period for six or twelve months and includes cover for fittings and fixture, an option for Third Party only or Third Party Fire and Theft. Most of the time, legal services are included in this package. Other options can include Recovery and Breakdown cover.
Restaurant and Takeaway Schemes
Many policies for Restaurant and Takeaway schemes will include packages for goods in transit, frozen foods, money, Public and Product Liability, book debts, Employers' Liability, and optional cover for buildings. Additional options can be explored by going to a Caterer's Insurance cover website and checking their fast food policy, legal expenses policy and terrorism extension policy.
Remember that every insurance policy is different. ALWAYS read the policy carefully to make sure that it has the right cover for you!
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