How Much Does Catering Insurance Cost? 2025 Rates

In 2025, 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.

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 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.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your catering business.

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

General Liability Insurance

The average cost of general liability insurance for a catering business is about $40 per month.

For example, if you’re catering an event and a guest trips over one of your extension cords and gets injured, general liability insurance can help cover their medical bills and any legal costs if they decide to sue.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the size of your business, how often you cater events, the types of services you offer (such as on-site cooking or alcohol service), and your past claims history.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $80 per month for catering businesses.

A Business Owner’s Policy (BOP) combines two key types of coverage: general liability insurance and commercial property insurance. This bundle helps protect your business from common risks like customer injuries, property damage, and losses to your kitchen equipment or workspace.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

For example, if a fire breaks out in your commercial kitchen and damages your ovens, counters, and walls, a BOP would help pay for the repairs and replacements. It’s a cost-effective way for caterers to get broad protection in one policy.

The price of a business owner’s policy depends on where your catering business is located, what kind of work you do, and how much your equipment and property are worth. If your catering company uses expensive tools or has valuable kitchen equipment, you’ll likely pay more for coverage.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a catering business is around $90 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a server slips while carrying a tray of food at an event and injures their back, workers’ compensation insurance would help cover their emergency room visit, physical therapy, and a portion of their lost wages if they can’t work for a while.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

The cost of workers’ compensation insurance mainly depends on how many employees you have and how risky their jobs are.

Commercial Auto Insurance

The average cost of commercial auto insurance for a catering business that offers catering services is about $160 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if one of your team members is driving the company van to set up for an event and someone rear-ends them at a stoplight, commercial auto insurance would help pay for the van repairs and cover any injuries or damage caused to others involved in the accident..

Factors influencing the cost depends on a few things, like the coverage limits you pick, your past claims, how many vehicles you use and how much they’re worth, and the driving history of anyone allowed to drive them.or personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

Liquor Liability Insurance

The average cost of liquor liability insurance for a catering business that serves alcohol is about $60 per month.

For catering businesses that serve alcohol at events, liquor liability insurance is important. It covers claims if someone gets hurt or causes damage after drinking alcohol you provided.

For example, if your staff serves drinks at a wedding and a guest becomes intoxicated, drives home, and causes an accident, liquor liability insurance could help pay for legal costs and any damages you’re held responsible for. This type of coverage protects your business when alcohol service leads to unexpected problems.

Typical policy limits are $1 million per occurrence, and $2 million aggregate.

Cost depends on the percentage of your revenue from alcohol sales, the type of alcohol served, staff training in responsible alcohol service, and previous liquor-related claims.

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.

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.

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 custom furnishings 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.

Claims History

If you’ve filed frequent insurance claims, underwriters will see you as higher risk, leading to higher rates. 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.

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.

How To Lower Your Catering Business Insurance Costs

Catering businesses face their own set of risks,from spilled beverages to slips and falls. Catering liability insurance helps protect your business if these kinds of accidents lead to injuries or damage to someone’s property. You can take smart steps to reduce your premiums without sacrificing protection. Here are some practical ways to lower your catering business insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation or liquor liability insurance, bundling all three through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often reward catering businesses that commit to a policy long-term. Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Accidents can cost both your catering business and your insurer a lot of money. By taking safety measures to prevent injuries, you may be able to lower your insurance premiums over time. For example, training staff on safe food handling, securely storing heavy equipment, and using insulated containers to prevent burns during food transport can all reduce the chance of accidents. These simple steps not only keep your team and customers safe but may also help you save on general liability insurance.

4. Create A Safe Working Environment

A strong safety program can reduce workers’ compensation costs. This includes training staff on safe food handling, proper lifting techniques, fire safety procedures, and having clear emergency exit routes. Fewer accidents mean fewer claims, and that translates to lower premiums in the future.

5. Train Your Staff On Alcohol Service

If your catering business serves alcohol, be sure your team is trained in responsible alcohol service. Many states offer alcohol certification programs like TIPS or ServSafe Alcohol. Insurers may offer discounts to catering businesses that require this training, as it shows you’re proactively reducing liquor liability risk.

6. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your catering business a safer, more resilient business.