Catering companies have two coverage issues that separate them from standard restaurant risks: the mobile nature of their operations and liquor liability. When a caterer sets up at an event venue, their standard property coverage typically doesn't follow the equipment. When they serve alcohol, standard GL doesn't cover dram shop claims. Understanding these gaps — and closing them before a loss — is what distinguishes agents who provide real value to catering company clients.
Commercial General LiabilityCovers bodily injury and property damage arising from catering operations — a guest who trips over a serving table, a fire caused by catering equipment at an event venue, or a server who accidentally spills hot liquid on a guest. GL is the foundation of every catering account and is required by virtually every venue that allows outside caterers to operate on their premises.
Product LiabilityCovers claims arising from food or beverages served — foodborne illness, allergic reactions from undisclosed ingredients, or foreign objects found in catered food. Product liability is typically included within the GL products-completed operations coverage, but limits should be reviewed. A single foodborne illness outbreak at a large catered event can produce dozens of simultaneous claims.
Liquor LiabilityIf the catering company serves alcohol at events — even as part of an "open bar" arrangement with the event host — liquor liability coverage is essential. Standard GL policies exclude liquor liability for businesses in the business of selling, serving, or furnishing alcohol. A guest who is over-served and subsequently causes an accident creates dram shop liability that follows back to the caterer.
Commercial AutoCatering companies transport food, equipment, serving supplies, and staff in vans and delivery vehicles. Commercial auto coverage is required for all company vehicles, and hired and non-owned auto coverage is needed when employees use personal vehicles for catering deliveries or event setup.
Workers' CompensationCatering employees face burns from cooking and serving hot food, cuts from food preparation, musculoskeletal injuries from carrying heavy equipment and catering supplies, and slip-and-fall risks in both commercial kitchens and temporary event setups. WC is mandatory in virtually every state for any employees.
Commercial PropertyCovers the commissary kitchen (if owned or leased), cooking equipment, serving equipment, and inventory. Catering equipment — commercial ovens, chafing dishes, serving carts, table linens, and dishware — is valuable and often stored separately from the primary kitchen. Commercial property and inland marine may both be needed.
Inland Marine / Equipment FloaterCatering equipment moved to event venues is frequently excluded from standard property coverage because it is off-premises. An inland marine or equipment floater policy covers catering equipment while in transit and at temporary event locations.
Umbrella / Excess LiabilityMany event venues and corporate event clients require catering vendors to carry umbrella limits of $2M or more. Wedding venues, country clubs, convention centers, and corporate event facilities commonly specify umbrella requirements in their vendor agreements.
ACORD 125 — Commercial Insurance ApplicationPrimary submission document for every catering account. Capture all types of events catered — weddings, corporate events, private parties, large public events — and whether the company cooks on-site at events vs. transporting pre-prepared food. Both affect underwriting.
ACORD 126 — Commercial General Liability SectionRequired for GL coverage. Describe all catering operations, whether alcohol is served, maximum event size, and whether cooking is performed on-premises at the venue vs. in a commissary kitchen. Maximum revenue per event and annual event count matter to underwriters.
ACORD 127 — Business Auto SectionRequired when quoting commercial auto for delivery vehicles and catering vans. Include all vehicles in the fleet, drivers, and whether any vehicles transport refrigerated food requiring temperature maintenance.
ACORD 130 — Workers Compensation ApplicationRequired for WC. Catering workers typically fall under food service class codes. Include all employees and seasonal/event workers — event staff who work only for specific events are still employees for WC purposes.
→What types of events does the company cater — weddings, corporate events, private parties, festivals, public events?
→What is the maximum number of guests at a single catered event?
→Is alcohol served at catered events? Does the company provide the alcohol or just the service?
→Does the company hold a liquor license or serve under the client's liquor license?
→Does the company cook on-site at event venues, or does all food preparation happen in a commissary kitchen?
→What type of cooking equipment is used at events — propane burners, open flame, Sterno?
→What is the annual gross revenue from catering services?
→What is the average revenue per event?
→How many events are catered per year?
→Does the company cater any events over 500 guests?
→Does the company cater any high-profile events where a food incident could attract media attention?
→What food safety certifications does the kitchen staff hold?
→Has the company had any foodborne illness complaints, claims, or health department violations?
→How many employees, including seasonal and part-time event staff?
→Does the company own a commissary kitchen or rent commercial kitchen space?
→What is the value of cooking equipment and serving equipment used off-premises at events?
→Does the company serve at outdoor events with open flame or heating equipment?
→Are events catered at private residences, and does the company have any restrictions on residential event work?