# Catering Liability



## brunswick_cater

Hi, I am new to the catering business and was wondering what others do about catering liability. Do you have insurance? How much? What is your legal entity? LLC? I have so many different things and do not want to be sued, but I guess in a litigious environment, you need to be prepared.

Thanks for all your help

Felix


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## ed buchanan

Ask your Insurance rep. about product liability insurance .In most cases it can be based on your gross business volume. Or ask him about an umberella policy.


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## foodnfoto

While our business is not really an off- or on-site catering facility, our health department permit categorizes us as a mobile catering business. In NY you must have liability insurance to sell food anywhere. For the most part we sell our stuff at farmer's markets and art and music fairs. 
We carry $2 million general liability and $1 million specific incident and pay about $400/year. We feel it's a small price to pay for our protection against accidents and even potential trumped up lawsuits (not that our wonderful clients would do such a thing).

If you are considering not spending the money for liability insurance-read the following cautionary anecdote:

I once worked for a restaurant with a chef/owner who wanted to launch into off-site catering. He had many very wealthy clients who were only too happy to have him cater parties in their homes. One of these prominent clients hired him for a Christmas party at his fabulous home. While chef was cooking in the kitchen, the service personnel (at the direction of the client) set up the hot food in chafers on his dining room table. Unknown to anyone but the client, the table was a french antique circa 1800 or so, valued at about $200,000. The wait staff lit some sterno pots to keep the food in the chafers warm and set them directly on the table, consequently burning a nice row of little round disks on the table top. The client sued, we all lost our jobs when chef/owner lost his restaurant, house and shirt in the settlement and wound up having to declare bankruptcy. A measly $400/year in liability insurance premiums would have saved the situation. 

Live and learn, I guess.

Get the insurance.


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## rsteve

Apologies, but I've heard variations of that anecdote ad nauseum. Unless the client informed the chef and staff via contract of the table's value and explicitly directed them not to place the Sterno pots on it, he had no case against the chef. If, indeed, the table was a valuable antique, it also would have been insured by the owner. It sounds like the chef/owner took a walk on his payables and claimed it was this event. I trust that the people who worked the event were told that they weren't getting paid.

And, yes...liability insurance is usually mandatory. It's more often for a broken tooth than anything else.


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## bbally

Liability insurance is a must have!

If you are going to be small for a while, go with the S-corp for starting out. If you are going to be over 1.5 million from the start be an LLC.

Depending on your personal asset value you should explore options on company assets. Catering gets asset heavy very rapidly. These assets are exposed to civil suits. Best to set up a C-corp that jumps from Nevada, to Delaware, to Barbadous then to Panama. (easier than it sounds) to hold and lease you all the assets. That way the assets are outta reach of the civil suit without the other side spending lots of money to untangle the mystery of who owns the leasing company.

The less assets that are free and clear, the lower the chance of frivilous civil suits.

Of course the best practices should be followed to minimize the chance of civil suits, but everyone should be aware of the part of society that leaches off everyone elses hard work.


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## chefbillyb

I can take off ( clearing out a Hotel ) off of my Bucket list. Going back a few years ago I was doing demo cooking for a catering. The steam from the pan set off the alarm. The next thing I heard was the fire trucks coming to the front of the Hotel and firemen walking thru my party in full gear and axes. Whats funny is, no one in my party left or stopped eating. My party contact person came up to me and said, let me handle the entertainment for the party, and laughed. Anyway, I was thinking what my Liability would have been if something did go wrong and there was a fire. I pay about 2k a year, its a necessary evil.........................Bill


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## robbhere

What part of New York are you in. Looking to get insurance similar to yours and that price is great.
Thanks


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## chef nat

I'd like to give cooking classes, at my home but also at the home of my clients, is it possible to insure/event?

Do you know a good insurance company and a rep to contact to get me started. I am located in Los Angeles.

Thanks for your answer 

Chef Nat

Natacha Mannhart


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## shroomgirl

I'd start with independent insurance companies.....it should not be expensive.


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## chef gooch

I'm a personal chef and going into people's homes to cook for them does involve a certain level of risk you absolutely need to be covered for. After looking around I went with fliprogram.com and it was only $299 (plus some small fees) to get covered for the entire year and they actually have decent service. Not bad, I guess. What has everyone else seen as far as pricing for annual policies?


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## ross flip ins

Hi Chef Gooch,

Thanks for the referral to FLIP! I'm hoping we are still meeting all of your needs for insurance. We cover a wide range of food businesses, including Food Trucks, Carts and Trailers, renting at a Commercial Kitchen, Vendors and Concessions, Caterers, and OF COURSE Personal Chefs.

Here's a full list and details of who qualifies for our incredibly affordable, quality insurance. https://www.fliprogram.com/who-qualifies

We are on the cutting edge of insurance for small businesses. Our policies are applied for and purchased online and you can download your proof of insurance IMMEDIATELY after purchase. You can also add an unlimited amount of additional insureds, like venues or landlords, for free by logging on to your account 24/7. Even from your mobile device.

Go to our site to find out more about the policy and buy it today. www.fliprogram.com


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