Catering business insurance costs vary significantly across coverage types. MoneyGeek's analysis shows monthly premiums range from $74 for workers' compensation to $99 for business owner's policy (BOP) coverage.
How Much Does Catering Business Insurance Cost?
Catering business insurance can cost as little as $74 per month, though your specific business details and coverage needs will determine your actual rate.
Discover cheap catering business insurance below.
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Updated: August 18, 2025
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Key Takeaways
Catering business insurance costs typically range from $74 to $99 monthly, depending on your coverage type and specific business needs.
Your catering insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable catering business insurance costs.
Average Catering Business Insurance Cost Overall
| BOP | $99 |
| General Liability | $89 |
| Professional Liability (E&O) | $79 |
| Workers' Comp | $74 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Catering Business Insurance Cost for General Liability Coverage by State
Your catering business general liability coverage costs vary by location. Kentucky offers the most savings at $82 monthly versus the $89 national average, while Hawaii costs $111 monthly.
| Alabama | $86 |
| Alaska | $96 |
| Arizona | $84 |
| Arkansas | $85 |
| California | $98 |
| Colorado | $87 |
| Connecticut | $96 |
| Delaware | $95 |
| Florida | $95 |
| Georgia | $89 |
| Hawaii | $111 |
| Idaho | $84 |
| Illinois | $97 |
| Indiana | $86 |
| Iowa | $84 |
| Kansas | $86 |
| Kentucky | $82 |
| Louisiana | $108 |
| Maine | $76 |
| Maryland | $84 |
| Massachusetts | $92 |
| Michigan | $83 |
| Minnesota | $83 |
| Mississippi | $88 |
| Missouri | $87 |
| Montana | $88 |
| Nebraska | $83 |
| Nevada | $100 |
| New Hampshire | $88 |
| New Jersey | $100 |
| New Mexico | $89 |
| New York | $102 |
| North Carolina | $76 |
| North Dakota | $77 |
| Ohio | $82 |
| Oklahoma | $87 |
| Oregon | $82 |
| Pennsylvania | $101 |
| Rhode Island | $97 |
| South Carolina | $91 |
| South Dakota | $82 |
| Tennessee | $86 |
| Texas | $89 |
| Utah | $84 |
| Vermont | $85 |
| Virginia | $80 |
| Washington | $100 |
| West Virginia | $92 |
| Wisconsin | $86 |
| Wyoming | $82 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Catering Business Insurance Cost for Workers’ Compensation Coverage by State
Your catering business cost for workers' compensation varies by state. North Carolina offers the lowest rates at $64 monthly and New York the highest at $86 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $72 |
| Alaska | $67 |
| Arizona | $69 |
| Arkansas | $71 |
| California | $82 |
| Colorado | $73 |
| Connecticut | $79 |
| Delaware | $80 |
| Florida | $80 |
| Georgia | $75 |
| Hawaii | $77 |
| Idaho | $70 |
| Illinois | $81 |
| Indiana | $72 |
| Iowa | $70 |
| Kansas | $71 |
| Kentucky | $69 |
| Louisiana | $84 |
| Maine | $64 |
| Maryland | $71 |
| Massachusetts | $78 |
| Michigan | $69 |
| Minnesota | $69 |
| Mississippi | $74 |
| Missouri | $73 |
| Montana | $73 |
| Nebraska | $69 |
| Nevada | $83 |
| New Hampshire | $73 |
| New Jersey | $83 |
| New Mexico | $74 |
| New York | $86 |
| North Carolina | $64 |
| Oklahoma | $69 |
| Oregon | $69 |
| Pennsylvania | $85 |
| Rhode Island | $81 |
| South Carolina | $77 |
| South Dakota | $69 |
| Tennessee | $72 |
| Texas | $74 |
| Utah | $71 |
| Vermont | $71 |
| Virginia | $67 |
| West Virginia | $77 |
| Wisconsin | $73 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Catering Business Insurance Cost for Professional Liability Coverage by State
The cost for professional liability varies by state, just like other business insurance coverages. While the national average is $80 monthly, North Carolina offers the lowest rates at $68 monthly for E&O insurance, and Nevada charges the highest at $92 monthly.
| Alabama | $78 |
| Alaska | $70 |
| Arizona | $74 |
| Arkansas | $75 |
| California | $88 |
| Colorado | $79 |
| Connecticut | $85 |
| Delaware | $85 |
| Florida | $86 |
| Georgia | $81 |
| Hawaii | $85 |
| Idaho | $75 |
| Illinois | $87 |
| Indiana | $77 |
| Iowa | $76 |
| Kansas | $77 |
| Kentucky | $75 |
| Louisiana | $87 |
| Maine | $68 |
| Maryland | $75 |
| Massachusetts | $84 |
| Michigan | $76 |
| Minnesota | $74 |
| Mississippi | $78 |
| Missouri | $80 |
| Montana | $78 |
| Nebraska | $74 |
| Nevada | $92 |
| New Hampshire | $79 |
| New Jersey | $90 |
| New Mexico | $79 |
| New York | $91 |
| North Carolina | $68 |
| North Dakota | $70 |
| Ohio | $75 |
| Oklahoma | $73 |
| Oregon | $74 |
| Pennsylvania | $91 |
| Rhode Island | $86 |
| South Carolina | $83 |
| South Dakota | $74 |
| Tennessee | $78 |
| Texas | $80 |
| Utah | $76 |
| Vermont | $77 |
| Virginia | $72 |
| Washington | $91 |
| West Virginia | $81 |
| Wisconsin | $78 |
| Wyoming | $72 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Catering Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for catering businesses across states. Monthly premiums range from $84 in Maine to $115 in Nevada for similar coverage levels.
| Alabama | $98 |
| Alaska | $95 |
| Arizona | $93 |
| Arkansas | $95 |
| California | $108 |
| Colorado | $100 |
| Connecticut | $111 |
| Delaware | $107 |
| Florida | $105 |
| Georgia | $103 |
| Hawaii | $113 |
| Idaho | $93 |
| Illinois | $110 |
| Indiana | $98 |
| Iowa | $93 |
| Kansas | $97 |
| Kentucky | $94 |
| Louisiana | $114 |
| Maine | $84 |
| Maryland | $95 |
| Massachusetts | $104 |
| Michigan | $93 |
| Minnesota | $94 |
| Mississippi | $100 |
| Missouri | $101 |
| Montana | $99 |
| Nebraska | $92 |
| Nevada | $115 |
| New Hampshire | $99 |
| New Jersey | $112 |
| New Mexico | $100 |
| New York | $113 |
| North Carolina | $85 |
| North Dakota | $86 |
| Ohio | $90 |
| Oklahoma | $96 |
| Oregon | $94 |
| Pennsylvania | $113 |
| Rhode Island | $109 |
| South Carolina | $102 |
| South Dakota | $93 |
| Tennessee | $98 |
| Texas | $100 |
| Utah | $95 |
| Vermont | $95 |
| Virginia | $89 |
| Washington | $111 |
| West Virginia | $102 |
| Wisconsin | $98 |
| Wyoming | $90 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Catering Business Insurance Cost
Insurance companies look at several factors to determine your catering business insurance costs. Understanding these elements helps you create more accurate budget plans. We explain these key factors below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Operating in areas prone to natural disasters or with high theft rates increases your risk, and state differences create substantial premium variations.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single slip-and-fall lawsuit can substantially increase your general liability rates at renewal.
Types of venues served
Your event venues affect insurance costs. Outdoor venues with weather risks or historic buildings with strict liability requirements carry higher insurance costs than standard banquet halls. High-end venues often require higher coverage limits.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs, impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Full-service catering with on-site cooking carries higher risks than drop-off service. Additional services like bartending, equipment rental, or specialty cooking methods like flambé increase liability exposure and premium costs.
Business size and revenue
Higher annual revenue typically means higher premiums since insurers view larger operations as having greater exposure to claims. A small catering business earning $100,000 annually pays less than a large operation with $1 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
Professional kitchen equipment, mobile refrigeration units, and catering vans require specific coverage limits. A company with $200,000 in specialized equipment pays more for property coverage than one with basic cooking supplies.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Catering Business Insurance
Smart shopping and careful business practices can lower your catering insurance costs, and our proven tips below will help reduce your premiums both now and as your safety record improves.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your catering company needs helps avoid paying for unnecessary coverage. General liability protects against food-related incidents and property damage, while workers compensation covers employee injuries. Commercial property insurance safeguards your kitchen equipment and inventory.
- 2
Shop multiple insurance companies
Insurance rates can vary significantly between providers for the same coverage. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who can handle quote comparisons for you.
- 3
Bundle your coverage types
Insurance providers offer substantial discounts for bundled policies. Combining general liability, commercial property and food service coverage with one carrier typically costs less than separate policies from different insurers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. This means you'll pay more out-of-pocket for small claims, but your regular insurance payments will be lower.
- 5
Pay annually instead of monthly
Monthly payment processing fees can add up quickly. Paying your premium annually often eliminates these fees and may qualify you for additional discounts.
- 6
Review and adjust your coverage annually
Your insurance needs change as your catering business grows. Review your policy yearly to ensure coverage matches your current operations. Remove unnecessary coverage and adjust limits based on your business size and activities.
Insurance for Catering Business Cost: Bottom Line
Catering business insurance costs range from $74 to $99 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually helps you find more affordable rates.
Catering Business Insurance Cost: FAQ
Business owners frequently ask about catering business insurance costs, and we researched the most common questions to provide clear answers below.
What is the cheapest type of catering business insurance?
Workers' compensation insurance costs $74 monthly for catering businesses. Most catering operations need general liability insurance ($89 monthly) to protect against customer injuries and property damage claims.
How much can I save by bundling my catering business insurance policies?
Bundling multiple policies through a BOP offers the best value. Workers' compensation insurance has the lowest standalone monthly premium at $74 for catering businesses.
What factors make my catering business insurance more expensive?
Professional liability insurance (E&O) is the most budget-friendly option for catering businesses, with average monthly premiums of $79 or $950 annually.
Should I choose a $500 or $2,500 deductible for my catering business insurance?
Higher deductibles lower monthly premiums but require larger out-of-pocket payments when filing claims. Consider your available cash reserves and claim frequency when choosing your deductible.
How much does workers' compensation cost for catering businesses by state?
Workers' compensation rates for catering businesses vary by state, ranging from $64 monthly in North Carolina to $86 monthly in New York, with costs reflecting local risk factors.
Is business owner's policy (BOP) worth the extra cost for catering companies?
A business owner's policy costs $99 per month for catering companies and combines multiple essential coverages. This bundled approach provides more value than purchasing individual policies separately.
How often should I shop around for catering business insurance quotes?
Review your catering insurance quotes once a year during renewal. Compare at least three insurers to find better rates, particularly if your business has grown or changed.
How We Determined Catering Business Insurance Costs
We collected catering business insurance quotes from companies across different states. To make sure we compared apples to apples, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small catering businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the catering industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.