Why do caterers need insurance?
Email breach
As a self-employed private chef, you drum up business by keeping the clients on your database up to date with a monthly newsletter. After sending out your mailer, you notice a reply, so open it up and click a link – unfortunately, this locks you out of your own system. Not only is your client data exposed by this cyber-attack, but you haven’t the funds to pay the ransom. Cyber cover built into your catering insurance helps to pay the demand and recover lost data.
Credit card fraud
You trust your long-standing administrator to deal with suppliers, process payments and manage your business’ credit card. There have never been signs to indicate cause for concern, but when your bank notices unusual credit card transactions, you become suspicious. Upon closer inspection, you discover the employee has been making personal purchases and paying off the balance with funds from your business account. With the support of Hiscox crime insurance, your catering business’ finances are protected.
Contract dispute
Working in the food and drink industry can be varied business – you’ve recently hit the jackpot by landing a regular slot for six months at a filming studio. After working for a month, things are going well. Both cast and crew love your menus, but the contract is unexpectedly terminated. This unforeseen cancellation means you stand to miss out on a further five months of previously guaranteed income and have to enter into legal proceedings. Commercial legal protection can help you through the legal process and bolster your business.
What insurance is available for caterers?
Crime insurance
Any business can fall victim to fraud and the threat can come from various sources. An employee may embezzle money, or an unknown third party could engage you in telephone fraud – there are many ways you can be impacted by economic crime. By building crime insurance into your catering business cover – whether you’re a mobile caterer or work from a fixed location – you’ll be protecting your business from several risks.
Legal protection insurance
You might find yourself at an employment tribunal after letting a chef go, you could be facing a battle for unpaid services or even end up in a contractual dispute. All of these circumstances can be draining for both your time and your finances – that’s where commercial legal protection can assist your business. This product covers your legal expenses so if you have to pursue a case or require protection against a claim you can maintain the vitality of your venture.
Cyber insurance
Catering businesses that take bookings online, email clients or simply use the internet to double check a recipe can all face cyber threats. Whether your employee accidentally shares client data when sending sample menus or your emails are hacked while taking a booking, cyber and data cover can help. Dealing with a cyber incident can create all kinds of problems, but Hiscox cover can assist – we can get experts to restore systems, pay ransom demands and even work to recreate data.
If you’re not sure what you need, tell us a little more about your catering business. We’ll help you to build your quote and explore any other insurance needs.
Build my coverInsurance for catering: FAQs
Does Hiscox catering insurance cover mobile catering?
Yes, tailoring cover for your catering business with Hiscox can provide insurance for your mobile bookings. Many of the risks for caterers operating from a single place of work are the same or similar to those who travel between events.
You might also find it beneficial to add an extra layer of crime insurance. As a small, mobile business, you may benefit from protecting your earnings from embezzlement or theft and other criminal activities such as telephone fraud.
How much does catering insurance cost?
The amount your catering insurance costs will depend on which products you choose and how many types of cover you build into your tailored policy. However, business insurance quotes with Hiscox start from £9.80 per month*.
To help you calculate how much your catering business insurance might cost, our FAQ section has further details. Read our guide to how much business cover costs to gain more information.
*Figures based on an average of at least 10% of our customer base between October 2020 and October 2021
What insurance do I need if I run my catering business from home?
You will likely still require many of the same covers when operating your culinary business from home. However, unless your home insurance policy is extremely comprehensive, it’s unlikely to provide the correct level of cover you’ll need to appropriately protect your catering business.
If you use your home kitchen, or are thinking of doing so, Hiscox can help you build the right policy for these circumstances. Our home-based business insurance page provides a guide to the products you might need to build into your policy if you run your venture from home.
Related articles and guides
Small business guide to cyber-attacksWhether you send menus by email or take bookings online, your catering business could be vulnerable to a cyber-attack. Follow our small business guide to stay in-the-know.
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