Common Mistakes That Increase Catering Business Insurance Costs
- 2 hours ago
- 2 min read
Catering businesses face risks from food preparation, event service, deliveries, and employee activity. Many catering companies unknowingly increase their catering business insurance costs by making preventable errors. Understanding these mistakes helps reduce premiums while ensuring full protection for kitchens, staff, vehicles, and clients.
1. Inaccurate Reporting of Revenue or Operations
Insurance premiums are based on annual revenue, number of events, and size of operations. Over-reporting increases costs unnecessarily, while under-reporting can result in denied claims. Providing accurate operational data ensures proper pricing and coverage.
2. Skipping Risk Management Practices
Neglecting documented food safety procedures, employee training, or equipment handling protocols increases exposure. Carriers reward caterers with strong risk management programs, which can lower premiums and reduce the likelihood of claims.
3. Selecting Incorrect Coverage Limits
Choosing coverage limits that are too high inflates premiums, whereas limits that are too low create financial risk. Properly structuring policies with appropriate deductibles ensures the right balance of protection and cost efficiency.
4. Ignoring Subcontractor and Vendor Insurance
Using subcontractors or vendors without proper insurance can transfer liability to your business if an incident occurs. Always require certificates of insurance and include additional insured endorsements when applicable to mitigate exposure.
5. Not Reviewing Policies Regularly
Catering businesses evolve over time, adding employees, vehicles, or event types. Failing to review policies annually can lead to gaps in coverage or unnecessarily high premiums. Regular updates keep coverage aligned with current operations.
Reduce Catering Business Insurance Costs Strategically
Avoiding these common mistakes helps control catering business insurance costs while maintaining full protection for your staff, kitchens, and events. Working with a specialised brokerage like Wexford Insurance allows caterers to compare carriers, optimise coverage, and secure competitive pricing.
👉 Request your catering business insurance quote from Wexford Insurance today and protect your business with confidence.
