What is personal chef insurance?
Personal chef insurance is a comprehensive way to make sure that a lawsuit or claim against the business will not force you to close your doors. A good personal chef insurance policy can cover the risky areas in your business and keep your money in your wallet if something bad does happen.
Do personal chefs need insurance?
Anyone who cooks for someone else or a group of individual clients outside of a restaurant or full-service catering company should look into personal chef insurance. Due to the risk of cooking in a clients’ home which could cause potential damages and injury, it is important to make sure you have a policy with coverages that meet your needs.
What insurance do personal chef businesses need?
Typical insurance for a personal chef can include general liability insurance, workers’ compensation insurance, commercial auto insurance, and more. It is important to look at your business model and see how it could potentially be exposed to risks.
Common types of personal chef insurance
General liability insurance
This type of insurance covers a wide variety of claims that could be made against your business due to accidents and other common risks. It will offer financial protection if someone other than you or your employee(s) is injured, or non-company property is damaged and you are held responsible.
Commercial auto insurance
Generally, a good policy to have (and in some cases a legal requirement) if you are using a vehicle or trailer to transport materials and tools to project sites or to carry out necessary actions for the job. This type of policy will cover any bodily injury and property damage claims that arise from an accident involving your work vehicle.
Workers’ compensation insurance
Workers’ compensation insurance will ensure that an employee that gets injured on the job will have medical bills and rehabilitation paid for, as well as any lost wages. Employer’s liability insurance is also usually included in workers’ compensation insurance. It covers events such as if an employee files a lawsuit blaming your business for negligence that led to an accident. Employers’ liability insurance will protect your business from costs like settlements, court fees, and attorney fees.
Commercial property insurance
If you rent or own a property to conduct business, commercial property insurance covers any damage to the building, as well as any equipment and inventory that may be in it.
Business owner’s policy
To save some money on the premium, a business owner’s policy combines both general liability and commercial property insurance into one plan. It is a cost-effective way to get coverage if you cook out of a commercial kitchen.
What are the limits of personal chef insurance?
The limits you choose for your business should reflect on the size of your store, the inventory you carry or expect to carry, and where your business is located, among other factors. Below are the median limits that personal chefs choose, but your business may require different limits.
| General liability insurance | $1,000,000 per occurrence |
| Commercial auto insurance | $100,000 aggregate |
| Workers’ compensation insurance | $500,000 bodily injury per accident |
| Commercial property insurance | $25,000 per occurrence |
| Business owner’s policy | $1,000,000 per occurrence $2,000,000 aggregate |
How much does personal chef insurance cost?
There are different factors that can affect how much personal chef insurance costs. These factors can include (but are not limited):
- Location
- Types of clients you serve
- History of claims
- Number of people employed
Grouping policies together with the same insurance provider can help save money through discounts. Below you can find the median costs for each type of policy mentioned. Your actual premium may vary.
| General liability insurance | $912 annually |
| Commercial auto insurance | $950 annually |
| Workers’ compensation insurance | $1,610 annually |
| Commercial property insurance | $755 annually |
| Business owner’s policy | $1,610 annually |
How to choose the best personal chef insurance
There are tons of providers, but only a few will have the products you need at the price you want with the service you expect. Here are a few useful tips that can help choose the best provider for you:
- Risks: Look at your business and identify areas that have a higher risk for accidents. Once you are able to do that, you can shop around for a policy that covers these areas and protects your business from financial obligations.
- Customize: A provider should be able to customize their existing products to meet your needs. If they are not able to, it may be best to move on to a different one. Providers that focus on building relationships with their customers are almost always willing to work with clients on cost-efficient packages of coverage.
- Customer feedback: Making sure the provider has an A rating with the Better Business Bureau or similar, credible rating entity. You can also look up reviews by other customers to see what the customer opinion is about the company.