How Much Does Catering Insurance Cost? 2025 Rates
Catering business insurance typically costs between $1,500 and $4,000 per year, depending on your location, the types of coverage you pick, the risks your catering business might face, and other factors.
We’ve saved shoppers an average of $320 per year on their small business insurance.
U.S. catering businesses can expect to pay between $1,500 and $4,000 annually for comprehensive business insurance, averaging $125 to $300 per month. The primary cost drivers are employee count, claims history, alcohol service, and property value.
Key Takeaways
Catering business insurance costs average $125–$300 per month.
Key factors: Size, location, business risk, claims history, type of coverage.
Bundling and safety measures can reduce premium costs.
How Much Does Catering Business Insurance Cost?
The average catering business in the U.S. pays between $1,500 and $4,000 per year for a full business insurance package. That breaks down to roughly $125 to $300 per month. However, this is just a ballpark range and actual business insurance costs can vary widely depending on your specific situation.
Every catering business is different, which means insurance costs can vary a lot. A small caterer who works from home and only serves a few events each month will likely pay much less than a large catering company with a commercial kitchen, delivery vans, and a team of employees.
Things like the type of food you serve, how often you cater events, where your kitchen is located, and the value of your cooking equipment all affect your insurance premiums.
For example, a caterer who travels to weddings and uses rented equipment may need more liability coverage than one who only prepares food for pickup. And if your business owns a van to transport food and supplies, you’ll need commercial auto insurance, which adds to your total cost.
Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your catering business.
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Quick Tip: Bundle general liability, property, and workers’ comp policies into a BOP to simplify your coverage and lower your monthly premium.
Average Catering Business Insurance Costs For Coverage Types
When it comes to protecting your catering business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most catering businesses need.
- General liability insurance: $40 per month
- Business owner’s policy: $80 per month
- Workers’ compensation insurance: $95 per month
- Commercial auto insurance: $160 per month
- Liquor liability insurance: $60 per month
Liquor Liability Insurance
Caterers who provide bar service at weddings, galas, corporate events, or private celebrations often need liquor liability coverage. The average cost for caterers that serve alcohol is about $60 per month.
This policy helps protect your business if a guest becomes intoxicated after being served at your event and later causes injuries or property damage. It can cover legal fees, settlements, and claims connected to alcohol service. Pricing depends on the types of events you handle, how often alcohol is served, the kind of beverages offered, server training, and past claims.
Typical limits are $1 million per occurrence and $2 million aggregate.
Average annual premiums in 10 states:
| State | Average Annual Cost |
| California | $1,220 |
| Texas | $860 |
| Florida | $980 |
| New York | $1,360 |
| Illinois | $760 |
| Georgia | $690 |
| Arizona | $640 |
| Colorado | $710 |
| Washington | $1,050 |
| North Carolina | $600 |
Note: These are state-level, illustrative estimates for liquor liability coverage tailored to catering operations (on-site service, event pouring, staff servers) based on typical annual premium ranges observed across both small independent agencies and larger national carriers; actual premiums will vary by location, limits and endorsements, event frequency, claims history, staffing and server training, and insurer underwriting.
General Liability Insurance
General liability insurance is one of the most common policies for catering companies, with an average cost of about $40 per month.
This coverage helps protect you if a guest, venue visitor, or event participant is injured or property is damaged during your catering services. For example, if someone trips over a power cord connected to warming equipment, general liability can help pay medical bills and legal defense. Costs vary based on catering style, frequency of events, services offered, and claim history.
Typical limits are $1 million per occurrence and $2 million aggregate.
Average annual premiums in 10 states:
| State | Average Annual Cost |
| California | $680 |
| New York | $740 |
| Texas | $440 |
| Florida | $520 |
| Illinois | $480 |
| Washington | $560 |
| Colorado | $420 |
| Massachusetts | $700 |
| Georgia | $400 |
| Arizona | $360 |
Note: Estimates are blended average annual General Liability premiums for catering businesses using sample quotes from both small and large insurance agencies and reflect catering‑specific exposures in each state; actual premiums will vary by insurer, coverage limits and endorsements, claims history, revenue and staffing levels, event frequency, and other business‑ and location‑specific underwriting factors.
Commercial Auto Insurance
Many caterers transport food, staff, supplies, decor, or portable kitchen equipment, so commercial auto insurance is often necessary. The average cost is about $160 per month.
This coverage applies when company-owned vehicles are involved in collisions, vandalism, theft, or cause injury or property damage. Premiums depend on the number of vehicles, their value, driver records, mileage, and claim history. Caterers using personal or rented vehicles may need hired and non-owned auto insurance instead.
Average annual premiums in 10 states:
| State | Average Annual Cost |
| California | $2,100 |
| Texas | $1,350 |
| Florida | $1,600 |
| New York | $2,300 |
| Illinois | $1,450 |
| Georgia | $1,300 |
| Arizona | $1,200 |
| Colorado | $1,250 |
| Washington | $1,550 |
| North Carolina | $1,150 |
Note: These estimates are state-level averages for commercial auto coverage tailored to catering operations (vans/box trucks used to transport food, staff, and equipment) and reflect pricing patterns across both small independent agencies and larger national carriers; actual premiums will vary by vehicle type and age, driving records, annual mileage and routes, payroll and employee driving exposures, selected limits and deductibles, local regulatory requirements, and insurer underwriting.
Workers’ Compensation Insurance
Workers compensation for catering businesses averages around $90 per month.
This policy covers medical treatment, wage replacement, and rehabilitation if employees are injured while working. Catering staff face risks such as slips, lifting injuries, burns, cuts, and transport-related incidents. Premiums depend on payroll size, staffing levels, employee duties, and prior claims.
Average annual premiums in 10 states:
| State | Average Annual Cost |
| Georgia | $1,150 |
| New York | $3,200 |
| Florida | $1,350 |
| Texas | $1,420 |
| Illinois | $1,480 |
| Arizona | $1,050 |
| California | $3,800 |
| Colorado | $920 |
| North Carolina | $1,020 |
| Washington | $1,600 |
Note: These figures are rough state-level estimates for catering businesses based on aggregated industry and state workers’ compensation rate data, typical payroll profiles for small-to-medium catering operations, and pricing patterns across national brokers and large and small agencies; actual premiums will vary with payroll size, employee class codes, claims history, business operations (on-site vs. event catering), selected limits and deductibles, and insurer underwriting.
Business Owner’s Policy (BOP)
A Business Owner’s Policy combines general liability with commercial property protection and is popular among caterers. The average cost is about $80 per month.
A BOP can help cover client injury claims as well as damage to your kitchen equipment, storage space, office, prep area, or supplies. If a grease fire destroys ovens, freezers, countertops, or stored inventory, a BOP may help pay for replacements. Pricing depends on equipment value, location, business size, and optional add-ons like food spoilage or business interruption.
Average annual premiums in 10 states:
| State | Average Annual Cost |
| California | $760 |
| Texas | $920 |
| Florida | $980 |
| New York | $940 |
| Illinois | $820 |
| Georgia | $780 |
| Washington | $840 |
| Arizona | $760 |
| North Carolina | $800 |
| Colorado | $830 |
Note: These estimates are based on aggregated state and industry averages for catering and small-business BOP policies from national broker and market analyses; actual premiums will vary by business size, revenue, location, claims history, selected limits/deductibles, and insurer (small vs. large agencies)
Catering Business Insurance Costs By Provider
Catering business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.
| Insurance Carrier | Average Annual Cost |
| Hiscox | $1,820 |
| The Hartford | $2,080 |
| NEXT Insurance | $1,640 |
| Chubb | $2,760 |
| CNA Insurance | $2,300 |
| Liberty Mutual | $2,120 |
| Travelers | $2,460 |
| Tokio Marine | $1,980 |
| Nationwide | $1,970 |
Note: These estimates are based on industry averages for catering businesses (small and large agencies), reflecting typical coverages such as general liability, product liability, commercial auto, property/equipment, and workers’ compensation; actual premiums will vary by location, annual revenue, event types, staff size, claims history, safety controls, and coverage limits
Quick Tip: Train all staff in proper safety procedures and alcohol service, insurers often offer discounts for proactive risk management and certified alcohol training programs.
What Factors Impact Your Catering Business Insurance Costs?
Insurance companies look at your catering business’s overall risk to decide how much you’ll pay for coverage. Things like the type of food you prepare, how and where you serve it, your location, and any past insurance claims all play a role in setting your premium. Underwriters use this information to figure out how risky your business is and how much your insurance should cost.
Type Of Catering Business
Different types of catering businesses come with different levels of risk, which affects insurance costs. For example, a large catering company that provides full meals, staff, and alcohol service at big events will usually pay more for insurance than a small operation that only delivers boxed lunches. Serving alcohol increases the chance of liability issues, especially if a guest drinks too much and causes an accident or injury.
Other considerations relate to the populations you serve; if you cater schools or nursing homes, your risks are higher due to working with high-risk populations. The same is true of catering businesses that work remotely, across state lines, or at international venues.
Alcohol Sales
Serving alcohol directly impacts your premiums. Liquor liability insurance is often mandatory, and businesses with higher alcohol sales usually face higher insurance costs.
Location
The location of your catering business can affect insurance costs, as areas with higher crime rates or legal risks may lead to higher premiums. Additionally, operating in a city with expensive real estate or high traffic can increase property and liability insurance costs because of higher litigation risks. Annual premiums may also change for catering businesses operating in areas with extreme weather risks, like winter storms closing business operations.
Size Of Your Operation
More square footage, seating, employees, and revenue all raise the chances of a claim. Workers’ compensation costs also rise with larger staff counts, especially in fast-paced kitchens.
Property Value And Equipment
Expensive equipment like high-end ovens, walk-in coolers, and industrial mixers can raise your commercial property insurance premiums. Many caterers also add extra coverage, such as equipment breakdown or food spoilage insurance, to protect these valuable assets in case of unexpected issues.
Tangentially, if you use refrigerated catering vans or have specialized equipment in your catering vehicles, you may need to adjust commercial auto coverage to protect your vehicles while in transit.
Claims History
If you’ve filed frequent insurance claims, underwriters will see you as higher risk, leading to higher rates. That’s what it is so important to maintain clean health department records, use HACCP protocols, and keep auto claims to a minimum. A clean claims record can qualify you for discounts.
Optional Endorsements
Add-ons like business interruption, cyber liability, and hired and non-owned auto coverage tailor protection but increase your premium. They are essential for catering with delivery, or high perishable inventories.
Credit Score
Catering businesses will find differences in premiums averaging 20% for an excellent credit score compared to a bad credit score. This is especially true of a solo operation. Keeping a good credit score particularly before renewing coverage can help keep costs low.
Insurance Provider
Rates vary among insurers. Some specialize in hospitality risks and offer better pricing or more flexible options. Comparing quotes from multiple carriers can save you money.
Key Point: Last year, food service businesses, including catering companies, accounted for 11.3% of all private-sector worker injuries.
How Do You Get Catering Business Insurance?
Getting the right insurance for your catering business isn’t as hard as it might seem. Follow these step-by-step instructions to make sure you’re covered from day one.
Identify Your Catering Risks and Insurance Requirements
Begin by evaluating the types of exposures that come with running a catering company. Think about whether you provide bar service, transport prepared food to venues, operate on-site cooking stations, or use commercial kitchen equipment. Consider how many staff members you send to events and whether you handle setup, plating, serving, or cleanup, since each increases responsibility.
Catering businesses often look at coverage such as general liability insurance, commercial property protection for kitchen equipment, workers compensation for employees, liquor liability for alcohol service, and business interruption insurance. Knowing which areas apply to your operation helps you choose policies that match your risk level and avoid paying for coverage you do not need.
Prepare Your Catering Business Details Before Getting Quotes
Insurance providers will offer more accurate pricing when you gather core information ahead of time. You may need to provide:
- Legal business name and physical or mailing address
- Catering business category such as event catering, corporate catering, wedding catering, or mobile catering
- Number of employees and estimated payroll
- Annual or projected revenue
- Value of kitchen equipment, serving tools, appliances, and storage assets
- Any past insurance claims
This information helps insurers evaluate your business properly and speeds up the quoting process.
Compare Quotes from Catering Insurance Providers
It is beneficial to request pricing from more than one insurer that understands hospitality and food service risks. You can get quotes by:
- Applying online directly through carriers like Hiscox, NEXT, or The Hartford
- Working with an independent broker who compares several policies on your behalf
- Contacting providers that specialize in catering and event-based insurance
Insuranceopedia can help locate affordable catering insurance options and save you the work of comparing providers manually. Reviewing at least three quotes allows you to compare coverage levels, pricing, and policy features.
Review Policy Terms Before Making a Decision
Do not choose a policy based only on the monthly cost. Review details such as:
- Coverage limits
- Deductibles
- Exclusions and optional add ons
- Claims handling reputation
Make sure the policy protects key areas such as alcohol service, food transportation, cooking equipment, refrigeration, temporary event setups, and hired staff. Caterers who work in different venues or outdoor environments should verify that coverage follows them wherever they operate.
Finalize Your Coverage and Keep Your Documents Organized
Once you select a policy that fits your catering business, complete the purchase and save copies both digitally and in print. Track renewal dates and plan to reassess coverage each year, especially if you expand services, increase event volume, add vehicles, upgrade kitchen equipment, or begin offering bar service.
Understanding your policy terms helps prevent surprises and ensures you know exactly where you are protected and where additional coverage may still be helpful.
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