Last Updated: May 30, 2024, 1:33 pm by TRUiC Team

Personal Chef Business Insurance

Getting insurance as a personal chef is essential.

Personal chefs need to be protected against things like claims of personal injury, property damage, and breach of contract.

For example, the food you make for a client could cause an allergic reaction, or a kitchen supplier could sue you for breach of contract.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Personal Chef Business

General liability insurance is — generally speaking — one of the most important insurance policies for personal chefs. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Although general liability insurance offers extensive coverage, there are potential risks specific to your business that may not be covered. To address these risks, it may be advisable to explore other insurance policies.

  • Commercial auto insurance: This policy is required for the vehicle you drive to your client’s homes, as any accidents that you or your employees get into while on the job won't be covered by your standard auto insurance.
  • Business income coverage: This type of insurance provides financial protection in case of a significant business interruption, such as a natural disaster or a major power outage. It covers expenses like lost income, relocation costs, and extra expenses incurred during the recovery period.
  • Professional liability insurance: This policy provides protection against allegations of professional negligence or failure to provide proper advice or service. In the event of a lawsuit, legal fees and damages will be covered.

There are two main types of insurance providers for businesses: traditional brick-and-mortar insurers and online insurers. 

Although traditional insurers are more widely known, small businesses often prefer online insurers like Next and Tivly because they offer more affordable quotes that are just as accurate and dependable as those from traditional firms.

Let's Find the Coverage You Need

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Cost of General Liability Insurance

On average, personal chefs in America spend between $500 - $1,200 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a personal chef business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Personal Chef Business

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Example 1: While cooking a dish in your client’s kitchen, you accidentally run into a guest and knock her to the ground. She breaks an arm in the fall and demands your business pay for her medical treatment. General liability insurance would cover her medical expenses.

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Example 2: As you bring groceries in from your car, you trip over a client’s cat and fall into a large television. General liability insurance would cover the cost of replacing your client’s damaged property.

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Example 3: Another personal chef files a lawsuit against you for slander. While you disagree with the accusation, you know you need to hire a lawyer to protect your interests. General liability insurance would pay for your legal defense.

Other Types of Coverage Personal Chef Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Professional Liability Insurance

While you work hard to satisfy your clients, there’s always a chance someone might decide you made a mistake that caused them injury. If a client sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Product Liability Insurance

While you strive to produce quality products that your clients can enjoy, there’s always a chance someone might decide something you made caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Commercial Auto Insurance

Any vehicle you use primarily for your personal chef business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business equipment or supplies you carry in your vehicle.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your personal chef business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Personal Chef Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes. In order to launch a personal chef business, it is crucial to obtain business insurance due to the specific risks associated with this type of company. Failure to have adequate insurance coverage can result in significant liability and financial instability. 

Additionally, certain insurance policies may be mandatory by law, such as workers' compensation insurance. Starting your business without these policies can put it in violation of these requirements.

Not necessarily. Certain exceptions may be written directly into your personal chef business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.