How Important Is Insurance If You Are A Caterer?
No matter what type of event your organize, how well you plan, protocol you have in place, sometimes things go wrong.
As the caterer or event planner people come to you for the slightest mishap. Heaven forbid something more critical should happen such as an attendee getting burned on a hot plate, or a fire starting. Should something like that happen people want someone to be accountable, someone to pay the medical costs and someone to pay for damages. They look to you for answers.
Whether or not the accident is your fault, it might be a good idea to have insurance to cover the event.
There is a growing trend to purchase more and more insurance but how do you determine what is right for your company? Should you have insurance just for you and your staff and the venue have their own insurance? Do you need additional insurance to cover liabilities. Are you protected under your won policy if an accident were to happen that involved guests?
THE BENEFITS
You and your staff are trained in safety meaning the likelihood of an accident is lower because of that training. That training should mean less expensive insurance options, saving money on your premiums and not having to assume the liability risk of other vendors.
Typically when you cater an event, your insurance will cover damages and injuries. But dramatic increases in insurance premiums or even non renewal of insurance is a risk. As an event director you need to be assured that a claim against you will not cause that to happen.
Saving money by purchasing higher risk policies isn’t always the best answer. One of the ways to defer the cost of purchasing a more reliable policy is to build them into your contract and use it as a selling feature that you have coverage and can offer peace of mind to the client. This is a benefit to the client as well as to you. It is an effective way of using your money to ensure when something happens you stay in business. Event insurance should fit the entire realm of circumstances your business engages in and not rely on any one else’s policy to fit your own unique needs.
Your insurance travels with you and for your staff, not just during the event itself. Find out what the right insurance coverage is for all circumstances in particular health and safety issues.
Be armed with coverage that applies to any property damage at a rented facility. A coverage limit of at least $100,000 is recommended.
GENERAL LIABILITY
General liability will cover property damage and bodily injury caused my direct or indirect actions of the insured. A good rule of thumb is at least $1 million in general liability but often working with government run facilities or larger corporations you may require $2 million. Check with your insurance company, some will allow interim insurance coverage on those occasions for an additional fee.
Your insurance agent can advise you of industry standards but coverage for bodily injuries to third parties should include a policy that covers at least $5,000 per person.
Keep in mind, the coverage you choose is the maximum amount an insurance company is committed to paying. That means you or your company must cover all other costs. it might be worth it for you to increase your limits and your coverage. Having insurance helps. It gives you peace of mind, it offers you protection and it safeguards your finances.
As with all professional services, seek professional advice from qualified, licensed individuals. Speak to insurance professionals that will help you develop a plan that is right for you. Not all circumstances and insurance policies are the same.
