Wedding Guests Got Sick After Our Meal: Catering Insurance Saved Us From $100k+ Lawsuit!
The “Perfect” Wedding and the Tainted Chicken Salad
My friend runs a catering business and handled a beautiful 200-person wedding. Everything seemed perfect. A week later, he got a call from the bride’s father. Over 30 guests had gotten salmonella poisoning. It was traced to his chicken salad. The lawsuit sought over $100,000 for medical bills and damages. His business would have been destroyed. But his General Liability policy included Product Liability coverage. It paid for the lawyers and the settlement, proving that the food you serve is a “product,” and you are liable for the harm it causes.
Catering Disasters: Protecting Your Business On & Off Site
The Server, The Sauce, and The $5,000 Wedding Dress
I worked for a caterer at a high-end wedding. One of our servers, rushing through the crowd, tripped and spilled a tray of tomato sauce all over the bride’s $5,000 custom wedding dress. The bride was in tears, the family was furious, and it was 100% our fault. Our company’s General Liability policy was designed for exactly this kind of off-site disaster. It paid for professional restoration and ultimately the replacement of the dress. It’s the essential protection for when your business operates in someone else’s space.
Catering Insurance Explained: CGL (Off-Premises!), Product Liability (Food), Auto, WC, Inland Marine
Your Business on Wheels Needs Protection in Motion
My aunt, a caterer, calls her insurance her “go-bag.” Commercial Auto is for the van she drives to events. General Liability (CGL) protects her when she’s at the venue, in case a guest trips over a power cord. Product Liability covers the food itself if someone gets sick. Workers’ Comp is for her staff if they get burned or cut. And the secret weapon, Inland Marine, covers all her expensive equipment—chafing dishes, ovens, etc.—while it’s in transit. Her business is constantly moving, so her insurance has to move with it.
Food Poisoning Liability: Your Biggest Risk! Ensure Adequate Product Liability Limits.
The Corporate Luncheon That Became a Corporate Lawsuit
A friend’s catering company delivered a large lunch for a law firm. Unbeknownst to them, the potato salad had turned. Over a dozen high-paid attorneys got sick, missing days of work. The firm sued my friend’s company for the cost of the food plus all their employees’ lost billable hours, a claim that soared past $50,000. This is the biggest risk in the food business. His Product Liability coverage, a key part of his business insurance, saved him from a lawsuit that would have financially crippled his company.
General Liability Extending to Client Venues (Damage to Property, Guest Injuries)
The Day We Almost Burned Down the Barn
I was working a wedding at a beautiful, historic barn venue. One of our servers placed a Sterno fuel can a little too close to a decorative hay bale, which started to smolder. We caught it instantly, but it was a terrifying reminder of the risks we bring into other people’s property. If we had caused a real fire, our company’s General Liability policy would have had to pay to repair the multi-million-dollar venue. Our insurance isn’t just to protect us; it’s to protect the expensive places where we work.
Commercial Auto Insurance for Your Catering Vans and Delivery Vehicles
Your Personal Car Insurance Won’t Cover That Delivery
My cousin started a small catering business and used his personal minivan for deliveries. He got into a minor fender bender on his way to an event. When his personal auto insurer found out he was using the van for business, they denied the claim entirely. They told him personal policies don’t cover commercial use. He had to pay for the damages out-of-pocket and immediately bought a Commercial Auto policy. It’s more expensive, but it’s the only real coverage when your vehicle is your business.
Workers’ Comp for Kitchen Staff, Servers, Drivers (Burns, Cuts, Lifting, Auto Risk!)
The Hustle and the Hurt
A catering company is a whirlwind of activity. I’ve seen a chef get a nasty burn from a hot oven, a server slice their hand on a broken glass, and a driver strain his back lifting a heavy cooler out of the van. Workers’ Compensation is the mandatory insurance that covers this constant risk. It pays for the employee’s medical bills and lost wages without argument. For a caterer, whose team is always hustling with hot pans, sharp knives, and heavy loads, it’s the essential safety net.
Inland Marine Coverage for Your Catering Equipment (Chafing Dishes, Linens, Serving Gear)
The Van Was Stolen—And So Was Our Entire Business
A friend’s catering van was stolen from outside an event venue. The van itself was covered by their auto policy. But all the contents—thousands of dollars worth of portable ovens, insulated food carriers, chafing dishes, and custom serving gear—were not. That’s where Inland Marine insurance comes in. It’s a special policy that covers your business property while it’s in transit or at a job site. Without it, my friend lost not just his equipment, but his ability to work.
Comparing Catering Insurance Policies: Event Size and Frequency Matter!
From Backyard BBQs to 500-Person Galas
My friend started his catering business doing small, 30-person backyard parties. His initial insurance policy was simple and affordable. The day he booked his first 500-person corporate gala, he called his agent. The agent told him his risk profile had completely changed and he needed to increase his liability limits from $1 million to $5 million. The premium tripled, but it was required by the venue. The size, complexity, and frequency of your events directly determine the level of protection you need.
Does Your Policy Cover Liquor Liability If You Provide Bar Services? CRITICAL Add-On!
The Open Bar and the Open-and-Shut Lawsuit
A caterer I know agreed to provide full bar service for a wedding. They served a guest who later caused a DUI accident. The caterer was sued and was shocked to learn his General Liability policy had a specific exclusion for any claims related to serving alcohol. He needed a separate, expensive Liquor Liability policy. He had to pay the six-figure settlement himself, which destroyed his business. If you serve alcohol, even once, getting specific Liquor Liability coverage isn’t optional; it’s a business survival tool.
Filing Claims for Off-Site Incidents (Spills Damaging Venue Carpet, etc.)
The Red Wine and the White Carpet
During a fancy cocktail party, one of our servers dropped a full tray of red wine glasses on the venue’s brand-new, cream-colored carpet. The stain was huge and impossible to remove. The venue manager was furious and sent our boss a bill for $4,000 to replace the carpet in the entire room. Our boss calmly took photos, got the bill, and called our insurance agent. He knew exactly what to do. Our General Liability policy handled it, turning a high-stress, embarrassing moment into a simple business transaction.
My Wedding Caterer Messed Up: Insurance Implications?
The Food Never Showed Up
For my cousin’s wedding, the caterer’s van broke down, and the food never arrived. It was a complete disaster. My cousin had to scramble to get pizzas delivered for 150 guests. Her contract with the caterer allowed her to get her deposit back, but she also filed a claim against the caterer’s insurance for the cost of the emergency pizzas and the “failure to perform” their duties. A caterer’s liability policy isn’t just for food poisoning; it can also cover the financial consequences when they simply fail to deliver on their promise.
Protecting Your Commercial Kitchen with Property and Equipment Breakdown Coverage
The Walk-In Cooler That Died Before the Big Gig
My friend’s catering company was prepping for their biggest event of the year when their massive walk-in cooler’s motor died. All the prepped food was at risk, and the repair would be $5,000. His standard Property policy wouldn’t cover it because it was a mechanical failure, not a fire or storm. Luckily, he had added Equipment Breakdown coverage. It paid for the emergency repair and saved the food, proving that your kitchen equipment can be a huge point of failure that needs its own special protection.
Spoilage Coverage for Ingredients Lost Due to Power Failure
The Thunderstorm That Cost Us $5,000
A powerful storm knocked out the power to our commercial kitchen for a full day. The refrigerators and freezers stopped working, and we had to throw out over $5,000 worth of prime ribs, fresh seafood, and produce we had bought for a weekend of events. We were devastated. Our standard property insurance didn’t cover it. But our “Spoilage” endorsement did. It’s a specific add-on for food businesses that reimburses you for inventory lost due to power outages, turning a potential catastrophe into a covered claim.
Catering Insurance: Serving Up Protection for Your Mobile Food Business
Your Kitchen Has Wheels, Your Insurance Should Too
A restaurant’s risk is mostly contained within four walls. A caterer’s risk is everywhere you go. It’s in the van on the highway, in the client’s kitchen you borrow, on the expensive rug you serve over, and in the food that people eat hours after you’ve left. Your business is defined by its mobility. A comprehensive catering insurance policy is designed for that motion. It’s a portable shield that protects your staff, your equipment, and your reputation, no matter where the next event takes you.
Coverage for Rental Equipment Used for Large Events?
We Didn’t Own the Tent, But We Were Still Responsible
For a large outdoor wedding, my catering company rented a massive tent, tables, chairs, and fancy dishware. A huge gust of wind ripped the tent, and a stack of rental plates was knocked over and shattered. Our contract with the rental company made us responsible for all damages. Our insurance policy had an endorsement for “property in your care, custody, or control.” This covered the damage to the rented equipment, saving us thousands. It’s crucial coverage if you rely on rental gear for your events.
What if Your Staff Damages Rental Dishes or Linens?
The Chipped Plates That Chipped Away at Our Profit
For a big gala, we rented 300 sets of fine china. At the end of the night, while breaking down, a clumsy server dropped a crate, chipping two dozen plates. The rental company charged us $50 per plate, a $1,200 bill that would have come directly out of our event’s profit. Our insurance policy included coverage for “property of others in our care,” which handled the replacement cost. It seems like a small detail, but those little damages can add up and destroy your profit margins.
Protecting Against Claims of Allergic Reactions to Your Food
The Hidden Walnut and the 911 Call
A guest at a party we catered had a severe allergic reaction. He had told us he was allergic to shellfish, which we carefully avoided. The reaction was from walnuts hidden in a pesto sauce that one of our chefs had bought pre-made. The guest was hospitalized, and his family threatened to sue. Our Product Liability insurance was essential. It defended us against the claim, even though the error was technically from our supplier. When you serve food, you are responsible for every single ingredient.
Certificate of Insurance (COI) Requirements from Venues and Clients
The Piece of Paper That Unlocks the Job
My friend, a caterer, was thrilled to land a huge corporate account. A week before the first event, the client’s venue manager sent an email asking for a “Certificate of Insurance” or COI. The venue required proof that my friend carried at least $2 million in General Liability and that the venue was named as an “additional insured” on his policy. He had to scramble to get the certificate from his agent. He quickly learned that a COI isn’t just paperwork; it’s the key that gets you in the door.
Catering Insurance: Don’t Leave Your Kitchen Without It!
The Most Important Ingredient
A great caterer obsesses over their ingredients: fresh herbs, prime meats, local vegetables. But the single most important ingredient isn’t on the menu. It’s the insurance policy. It’s the ingredient that ensures if a server spills wine on the mother-of-the-bride, if the food makes someone sick, or if the delivery van gets in a wreck, the business itself will survive. You can be the best chef in the world, but without that one ingredient, your entire business can spoil overnight.