General liability insurance for caterers covers costs associated with lawsuits resulting from physical injuries during catered events, property damage, copyright infringement and reputational damage, explains Insureon. For caterers that frequently store flammable liquids, the policy offers financial protection against accidental fire at venues.
General liability insurance is an essential insurance policy for catering companies, as it protects food businesses from unexpected accidents, illnesses and lawsuits, according to Insureon. The insurance policy covers bodily injury claims, such as a consumer who suffers a wrist injury after stepping on a wet floor and files a lawsuit against the catering firm, causing the company to shell out money for attorney's fees and court costs. Other possible injuries covered by a general liability insurance include burns from hot beverages, food poisoning and allergic reactions.
General liability insurance also pays for health care expenses, funeral costs and compensation awarded by the court to the claimant if an injury or sickness leads to death, but it does not cover workplace injuries or illnesses of employees, notes Insureon. Property damage coverage protects caterers from property damage- or injury-related liability at other venues.
Liquor liability coverage is a separate policy that covers expenses related to alcohol-related lawsuits, states Insureon. Caterers who use advertising methods benefit from personal and advertising injury coverage, which pays for copyright infringement, libel or slander lawsuits.