Location is one of the first decisions every caterer must face. Specifically, where will the prep work be done? Where will the cooking take place? Where will the preparations and cooking be finished, if they aren't completed at the original location? Where will the food be served?
The answers to each of those questions will dictate further considerations. For example, how will finished food, condiments and garnishments prepared at one location be kept properly hot or cold while being transported to the serving location, and while being served? And what health regulations and requirements must be met at each step?
Clearly each location used in the catering process has its own specific needs for equipment, procedures and staff. Each also creates risks of loss if the procedures, equipment or staff fail to meet required standards for health, food safety and successful contract fulfillment. Turn to a Trusted Choice Independent Insurance Agency such as Snotherly Insurance when it comes to risks of loss for your catering business.
Snotherly Insurance Agency is trained and experienced to help you uncover, estimate, analyze, and minimize or eliminate your exposure to loss. And while proud to provide those services for any client, we know that your catering business has unique needs for protection that go beyond those of other businesses and will recommend and obtain protection for those unique risks. A few examples:
Special equipment and proper vehicles are required to protect your food while in route to widely varying locations—destination weddings, backyard receptions, beachside cookouts. Depending upon the type of vehicle and planned usage, the auto insurance requirements can vary. And coverage for the food itself and equipment carried in the vehicle typically requires a separate policy from that covering.
2. Food Safety:
Your catering business needs contamination and spoilage insurance. The specific risks of contamination or spoilage can vary greatly between a caterer who largely prepares and serves food onsite, as opposed to one who prepares the majority or all food in a commercial kitchen, then transports and serves at off-site client locations.
While any business needs liability protection, the nature of catering can create additional exposures. These would include protection against liability arising at the prep and cooking location, created end route by your method of transportation, and arising from the characteristics of the final serving location. Serving alcoholic beverages creates a potentially major additional set of risks.
4. Loss of Business Income:
This is another risk faced by any business, but you need to be sure your coverage properly addresses the unique cash flow of your catering business. For example, consider the effects of event cancellations due to weather, a key supplier’s failure to deliver, losses due to a traffic accident or fire loss at the supplier location: Under what circumstances, if any, may your coverage apply to your financial loss?
While that may seem a weighty list, the great news is protection and risk management is exactly where your we stand ready to help. Schedule a complete review of your catering protection needs today, so you can focus completely on building your successful business tomorrow.
Considering owning a Food Truck? Congratulations! That is a wonderful idea! For many, who desire to own their own restaurant business, a Food Truck can serve as an essential first step in understanding the ins and outs of the restaurant industry. By owning a Food Truck, an entrepreneur has the opportunity to reach customers in various different areas meanwhile spreading their brand name and for many, a Food Truck will serve as the first step in them owning a restaurant business before acquiring a brick and mortar location. Conversely, there are fellow existing restaurant owners that may wish to expand their businesses by offering Food Truck services as well. Whether you're considering purchasing your first Food Truck or are an existing brick and mortar restaurant owner that is considering venturing into the Food Truck market, understanding Mobile Food Truck Insurance for your businesses will prove to be essential to your success in these specific operations. Below, Snotherly Insurance list 5 critical elements that all Food Truck Owners should be aware of when purchasing Food Truck Insurance and Food Trailer Insurance.
1. Automotive insurance IS NOT ENOUGH!
Yes, you may own a moving automobile and in the state of North Carolina you are legally required to carry automotive insurance on this product. However, many companies may claim to offer Food Truck Insurance and by this term they only offer a standard Commercial Auto Insurance policy for your Food Truck. Although, this specific type of insurance is essential (and legally required) for your Food Truck business, it performs the exact purpose as the Car Insurance policy you most likely have been carrying since you were the age of 16. It provides protection for the Mobile Food Automobile while being driven and offers the option of purchasing Comprehensive and Collision coverage to protect the physical truck as well. Food Truck Business Owners should also strive to purchase large limits of this Automobile Liability Insurance as the standard limits that can be found on most personal car insurance policies may not be sufficient protection for this operation. Snotherly Insurance recommends our customers carry limits of at least $500,000 to $1,000,000 of Food Truck Liability Insurance including the same Uninsured and Underinsured limits as well.
2. Proofs of insurance
Once a Food Truck Business is in operation, a proof of insurance from your local insurance agency or insurance company can often serve as the golden ticket required for your Food Truck operation to serve in well populated places. Food Truck Rodeos, college campuses, museums, outdoor festivals, local breweries and an array of other opportunities will most likely always require a Proof of Insurance from your Food Truck Business before you may be considered to operate on their premise. With that being said, it is ideal for any Food Truck operator to have an insurance agent or local agency that he/she can rely on to produce this specific document swiftly and appropriately to ensure that your operation does not miss out on selling and serving opportunities due to the failure to provide accurate documentation.
3. business Insurance is a must!
As stated above. A simple Commercial Auto policy is not sufficient enough to protect all risks that come with owning and operating a Food Truck operation. In fact, all Food Truck Business Owners should have a General Liability Policy or Business Owners policy that protects their business from serving...well..you guessed it, FOOD! A Food Truck Liability policy can protect your business from not only the serving of food, but will provide protection from a variety of dangers that restaurants encounter such as injuring a patron, serving uncooked or unintended items in foods, coverage from fire, etc. Food Truck Liability Insurance can be purchased as a separate policy alongside a Commercial Auto Policy or many insurance companies may provide this coverage with the auto protection as a package. It is important to understand the differences between these two lines of insurance and confirm that your Food Truck operation has both in place.
4. Property Insurance-
Did you know many standard auto policies exclude property coverage for Food Trucks over a specific low limit. We actually learned this matter first hand, as one of our clients spent nearly $70,000 for kitchen equipment inside his Food Truck only to learn that his current Food Truck Insurance policy provided a maximum limit of only $10,000! In addition to kitchen equipment, this specific client had purchased many cosmetic extras including large speakers, an amplifier, and lights. Our clients situation is a fine example that illustrates an owners need for appropriate property insurance. The equipment, contents, and personal property for the restaurant should all be protected, and many policies also provide coverage for equipment breakdown and even loss of business income in the event that you're equipment malfunctions or fails to work properly.
5. Workers Compensation -
The last and final matter of insurance that ALL business owners (not just restaurant or Food Truck owners) should be mindful of involves protection for your employees. Even though, this specific type of insurance may not apply to start up operations, if your Food Truck desires involve expanding to a second truck or even a brick and mortar location, insurance coverage for the employees that you hire will be a necessity. Food Truck Workers Compensation Insurance can be extremely affordable and may not only protect your employees, but protect your business in the event that an employee is injured and requires medical attention and/or legal action.
All of the above listed Food Trailer Insurance topics can be frequently offered by many standard business insurance companies. Once, Food Truck Liability Insurance, Commercial Auto Liability Insurance, Food Truck Property Insurance, Workers Compensation Insurance and matters of Proofs of Insurance are in place, you can essentially check matters of “Insurance” off of your list for the time being and focus on making your Food Truck Business a success. Further recommendations regarding NonOwned Automobile coverage, Commercial Umbrella coverage, Employee Dishonesty and other ancillary coverage's can be recommended and purchased, however the above mentioned 5 factors should be addressed initially in the start up of any Food Truck operation. Snotherly Insurance offers Food Truck Liability Insurance for businesses throughout the state of North Carolina. For more information email us at email@example.com or click here
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