Posted by sam sears, cec on December 07, 19100 at 22:01:39 :
In Reply to: New business posted by Colleen Craig on December 07, 19100 at 21:31:08 :
: I was asked during the holidays to make and sell cakes and pies, which I did. I have "catered" many parties of approx 100 folks on a family level, but I have been asked to cater a banquet of 120 people. I put in a bid, which was accepted. I am confident that I can cater the function successfully, and although I may not make a great profit, hopefully it will get me some exposure. I never imagined doing catering outside of home parties, showers, etc., but now that this opportunity has arisen, I took a leap.
: Here's my question. I'm not sure how this catering thing will pan out and I only intended to do an out of nome catering business, however, the banquet organizer has requested a certificate of insurance. First, can I and how do I get one and what can I expect to pay for one? Second, I have read many of the other "new business" questions and see recommendations concerning contacting the dept of health, incorporating, etc. Is this necessary in order to "try" this one function?
: Please give me some guidance if possible.
Hate to be the bearer of bad news, but in most locales it is illegal to cater from your home, I'm not going to get into the specifics as to why, or talk about unfair competition to those of us who are "legl", but from some unfortunate incidents I am somewhat of a insurance expert when it comes to caterers, we own a "mid" sized catering firm (revenues in the mid 6 figures), so we carry quite a bit of insurance.....and I can tell you that any commerical business liability insurance will have a clause that states that it does not cover any illegal activity on the part of the insured, so even if you get insurance it is not in force.....in most locales you must be approved by the health dept, fire depart, planning & zoning offices, plumbing board & electrical board, if liquor is served then the local & state Alcoholic beverage board & the Federal Bureau of ATF, if you use vehicles over 6,000# gross then you need a DOT license....so you see this is not a play time venture, but a real business, with real liabilities, which if you pursue w/o licensure & insurance then you are opening yourself, spouse & family, up to litigation, which could take your house, bank accounts, ect....if someone gets sick or hurt......just the facts.......sam sears, cec......feel free to contact me if you need further info.....sam