|
An Introduction to UK Catering
Insurance
People who have decided to become caterers may
need an introduction guide to UK catering insurance. No matter which
type of catering career or business has been chosen, insurance
should be a large part of the risk management programme. There are
numerous things that can go wrong during normal business operations
which may result in serious injuries, illnesses, property damage,
and financial losses.
However, in order to properly utilise insurance
as a risk management tool, a person must first know what insurance
is available. Then the person must select adequate amounts of each
type of coverage that provides the best protection for the business.
The following introduction guide may help caterers to become aware
of what coverage is available and what type of protection each one
provides.
Types of catering insurance
There are numerous catering insurance schemes
available on the market nowadays. Although there are some that are
specific to a particular type of catering, some are suitable to all
types of catering. The most common types of insurance purchased for
catering businesses are, in order of usual priority:
· Employers’ Liability: Mandatory by law if
anyone outside of the immediate family is working for the business.
This covers any legal and medical expenses incurred from the daily
business operations causing death, serious injury, or illness to an
employee. Keeping accurate records of past and current employees is
essential. This does not cover claims filed for sexual harassment or
employer discrimination, and is not a substitute for employee health
insurance.
· Product Liability: Covers the legal, medical and other expenses
incurred from a product causing harm to a third person or the
person’s property, such as in the case of food poisoning,
contaminated food, and no label warnings.
· Public Liability: Covers the legal, medical, and other expenses
incurred if a member of the public or their property is harmed,
damaged, or destroyed due to business operations or negligence.
· Commercial Vehicle Motor Liability: Covers vehicles being used for
business purposes. Most standard personal motor liability policies
exclude vehicles that are being used for business purposes.
· Theft, fire, and flood: Every caterer should insure their
premises, whether mobile or static, against theft, fire, and flood.
Be sure that the flooding clause includes flooding from faulty
fixtures as well as from inclement weather. This type usually does
not protect against an employee’s dishonesty. For that kind of
protection, an Employee Dishonesty/Fidelity Bond Coverage policy
will be required.
· Stock Loss/ Stock and Content: Provides coverage for stocked
inventory of products and supplies, such as frozen food spoiled due
to a faulty freezer. It can also include business equipment,
electronics, and trade furniture, depending on the policy. Most
policies will only cover specified stock and contents, and they set
limits to the amount of compensation.
· Stock and Equipment/Goods in transit: Covers the accidental damage
or loss of stock or equipment while it’s in route to or from a place
of business or where a business-related service is provided.
· Comprehensive Money: Compensates for the theft, accidental loss,
or damage to money and securities that was left on the premises, in
an employee’s home, in a safety deposit box, in a bank, in transit
to or from a bank, or in the hands of bill collectors. This type
usually excludes loss due to employee’s dishonesty or fraudulent
activities. Most types of Contents insurance policies exclude money
and securities.
· Business interruption: Compensates for a loss of business revenue
due to a business ceasing operations due to some circumstance beyond
control, such as a natural disaster. This helps to pay outgoing
expenses and to maintain the normal profit level. There are usually
several limits placed on this type of policy.
· Business Equipment and Tools: Compensates for the loss or damage
of business equipment and tools that the owner or an employee owns,
hires, or borrows for use in the performance of their
business-related duties. It normally doesn’t cover office equipment,
mobile phones, or personal electronics equipment unless they are
used as tools of the trade.
· Legal Expenses: This type is normally included as an extra bonus
in most bundled packages. However, it can be purchased separately.
It covers the legal expenses if a business is sued or has to file a
legal claim against someone else.
· Medical Expenses: This type is also normally included in bundled
packages as an extra bonus, but can be bought separately. It covers
any medical expenses incurred due to the business operations or
negligence of the owner or an employee.
· Building and Contents/property insurance: If the catering business
is conducted from home or a permanent building, then building and
contents or adequate property insurance is necessary. Most standard
home insurance policies exclude damages caused by business-related
activities. Be sure the fixtures and fittings are included as a part
of the contents, because most standard policies exclude them. Also,
Contents Coverage doesn’t automatically include business tools,
equipment, and stocked inventory, so be sure they are specifically
added in.
Types of cover geared to specific catering
businesses
Insurers sometimes bundle various policies
together to make it easier to get the coverage needed for a specific
type of catering business. Some of the bundled insurance schemes
that are available are:
Ø Baked Potato Oven Insurance
Ø Café Insurance
Ø Catering Van insurance
Ø Ethnic Restaurant Insurance
Ø Fish & Chip Shop Insurance
Ø Guest House Insurance
Ø Hog Roast Insurance
Ø Ice Cream Van Insurance
Ø Mobile Bar Insurance
Ø Mobile Catering Trailers & Liability insurance
Ø Outside caterers Liability insurance
Ø Pub Insurance
Ø Restaurant and Take Away insurance
Ø Takeaway Insurance
These bundled packages may widely vary in the type of covers and
benefits that are included. Fortunately, it’s very easy to
comparison shop and purchase catering insurance on the internet. A
few insurance brokers and specialists would be happy to present more
detailed information than what an introduction guide to UK catering
insurance provides. |