When your restaurant caters events off-site, you're taking your liability exposure on the road. The risks at a wedding venue, corporate office, or private home are different from those in your controlled restaurant environment. Understanding how general liability coverage extends beyond your four walls is essential for restaurants with catering operations.
How GL Coverage Extends to Off-Site Events
Standard restaurant general liability policies typically include coverage for 'operations' - the work you do, not just where you do it. This means your GL policy generally follows you to catering jobs, covering:
- Bodily injury to guests at the event (food poisoning, slip and fall)
- Property damage at the venue (spilled food on carpet, damaged flooring from equipment)
- Completed operations claims (illness after the event ends)
The Completed Operations Coverage
One of the most important coverages for catering operations is 'products and completed operations' coverage, which is included in most GL policies. This covers claims that arise after your work is done:
- A guest gets food poisoning 24 hours after eating at the event
- Equipment you installed for the event falls and injures someone the next day
- Food contamination traced back to your catering days later
Venue Requirements and Additional Insureds
Most venues where you'll cater require you to provide proof of insurance and add them as an additional insured. Common requirements include:
- Minimum limits: Usually $1 million per occurrence / $2 million aggregate
- Additional insured status: The venue wants to be covered under your policy for claims arising from your operations
- Waiver of subrogation: Your insurer agrees not to sue the venue to recover claim costs
- Primary and non-contributory: Your policy pays first, before the venue's insurance
How to Add Additional Insureds
At Anchor, we handle additional insured requests as part of our standard service. We can issue certificates of insurance (COIs) with additional insured endorsements, typically within 24 hours. Most policies allow unlimited additional insureds at no extra cost.
Risks Unique to Off-Site Catering
1. Less Control Over Environment
In your restaurant, you control the kitchen, the floors, the lighting, and the equipment. At a catering event, you're working in unfamiliar spaces with potential hazards:
- Uneven flooring or outdoor terrain
- Inadequate kitchen facilities
- Limited refrigeration or temperature control
- Unfamiliar electrical systems
2. Transportation Risks
Moving food, equipment, and staff to a venue creates additional exposures:
- Food temperature violations during transport
- Equipment damage in transit
- Auto accidents (covered by auto insurance, not GL)
3. Serving Staff You Don't Normally Supervise
Some caterers hire temporary staff for large events, increasing the risk of:
- Service errors
- Alcohol over-service (if serving liquor)
- Customer interaction issues
Special Considerations for Different Event Types
Weddings and Private Parties
High-value events where emotions run high. Claims can include:
- Food quality disputes escalating to legal claims
- Damage to expensive venues or decorations
- Guest injuries during dinner service
Corporate Events
Corporate clients often have strict insurance requirements and may require higher limits or specific endorsements. They're also more likely to pursue claims for service failures.
Outdoor Events
Outdoor catering adds weather-related risks, terrain hazards, and often involves temporary structures (tents, staging) that create additional liability.
What's NOT Covered Under Standard GL
- Auto accidents: Require commercial auto or hired/non-owned auto coverage
- Alcohol-related claims: Require separate liquor liability if serving alcohol
- Employee injuries: Covered under workers' compensation, not GL
- Contractual penalties: If you fail to deliver as promised, GL doesn't cover breach of contract
Frequently Asked Questions
Do I need separate insurance for catering operations?
Usually not. Your standard restaurant GL policy covers off-site catering as part of your operations. However, if catering is a significant part of your business, make sure your policy doesn't have any exclusions for off-premises work, and ensure your limits are adequate for large events.
What if the venue's floor is slippery and a guest falls?
This gets complicated. If the hazard existed before you arrived, the venue may be primarily responsible. If your operations created the hazard (spilled food, water), you're likely responsible. GL covers your legal defense regardless, and the carriers will sort out liability.
Does my GL cover damage to rented equipment?
Generally, no. GL covers third-party property damage, but many policies exclude property in your care, custody, or control. You may need a separate inland marine or equipment floater policy for rented equipment.