Do Food Trucks Need Caterer Insurance?
What type of insurance is best for a food truck depends both on the truck’s specific activities and the terms contained within a particular insurance policy. Some trucks might get a caterer insurance policy, but many are better off with a food truck insurance policy.
An insurance agent who specializes in caterer policies can help food truck owners determine whether this is the right type of commercial insurance for their business.
What Coverages Do Caterer Insurance Policies Provide?
There are many coverages that a caterer policy may, depending on the policy's options and a business’ needs, provide. Some fo the more common protections are:
- General Liability Coverage, which might cover some common accidents and defamation lawsuits
- Product Liability Coverage, which might cover accidents caused by sold foods and drinks
- Liquor Liability Coverage, which might cover alcohol-related accidents
- Commercial Auto Coverage, which might cover company-owned trucks, vans and cars
- Contents Coverage, which might cover company-owned equipment and inventory
- Equipment Breakdown Coverage, which might cover the breakdown of essential equipment
- Food Contamination Coverage, which might cover food contamination that’s caused by a disaster
Caterers that own their own cooking facility may also need building coverage, which normally protects owned buildings and might cover other structures.
An insurance agent who’s familiar with caterer policies can help businesses select the coverages that make sense for their situation.
What Caterers Need Liquor Liability Coverage?
Catering businesses that sell or serve alcohol, including alcohol that’s provided by an event host, usually need liquor liability coverage. The coverage is normally a prerequisite to obtaining a liquor license, and it might provide important protections should there be an alcohol-related incident at a catered event. Alcohol-related incidents are frequently excluded from general liability coverage’s protections.
Businesses that don’t sell or serve alcohol may not need liquor liability coverage. An informed agent can confirm that the coverage isn’t needed for a given business’ activities.
Importantly, caterers that don’t normally carry liquor liability coverage may be able to get coverage for a single event at a reasonable price. Many insurers offer short-term liquor liability coverage options, which sometimes make it possible for caterers who usually don’t touch alcohol to do an occasional adult event when the opportunity presents itself.
How Can Caterers in Massachusetts Get a Catering Insurance Policy?
For help finding a catering insurance policy that has the protections your business needs, contact the independent insurance agents at Scotti Insurance Agency. Our agents have the ability to show you policy options from several insurance companies in Massachusetts, and we can help you select the one that makes sense for your business.