Commercial General Liability Insurance, or CGL, is considered comprehensive business insurance, though it does not cover all risks that a business may face. It is a type of insurance policy that provides coverage to a business for bodily injury, personal injury, and property damage caused by your business operations, products, or injury that occurs on the business's premises.
- a client gets food poisoning
- someone breaks a tooth when biting into food that you prepared
- you drop a pan and crack a tile on your client's floor
- you damage equipment in the commercial kitchen you have rented
One of the major reasons small businesses need liability insurance, isn't for the cost of claims, but for the cost of defending claims. Liability insurance protects an individual or business from the risk that they may be sued and held legally liable for something such as injury or negligence. They generally cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.
The insurance company looks at how much it costs to defend, which can get into the hundreds of thousands of dollars, and often settles. Without Chef Insurance, that cost to you of hiring a lawyer and defending the claim, could be the difference between you staying in business or going out of business, or worse, going bankrupt. In essence, CGL protects your financial future.
Another important reason to get liability insurance is that the number of cases, claims, and the amount of settlements, are all rising. Canadians are becoming more 'comfortable' with starting claims and lawsuits, just as in the U.S. In the not-so-distant-past, if a client became ill after consuming prepared food, they may simply gone to the doctor; now, they are more likely to follow up with their lawyer first. In most cases, much of the legal fees to fight a lawsuit would be covered by commercial general liability insurance.
The good news is, however, that your Chef Insurance premiums are tax deductible.
Yes. Personal liability on your home insurance may not cover work-related situations. Liability is perhaps the greatest risk with a home-based business. What if you are sued because of problems with a product or service you provided? Having the right insurance coverage helps to provide peace of mind.
The Chef Alliance is a leading foodservice association in Canada offering Chefs and Entrepreneurs a place to grow their business. They can benefit from liability insurance to protect their clients and finances, peer support strengthen their business, discounts to lower their business costs, market their services and increase profits. This leaves them time to concentrate on what they do best - cook great food!