Bakery Insurance & Home Baking Insurance: Quotes From $5

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If you enjoy baking bread, cookies, cakes, pastries, and other baked goodies, then you may have already started your own bakery! Perhaps, you're a home baker that have been selling homemade cakes to your friends and family for years from home and you're finally ready to open up your own baking business. Or maybe, you're just interested in opening your own bakery or restaurant in town or from home, as the COVID-19 pandemic made more and more people start their own home businesses, particularly home baking business.

Bakery insurance and home baking business insurance are very similar to insuring other small businesses or restaurants. Although it may seem trivial or unnecessary, purchasing business insurance for home bakers or a regular bakery is an essential part of starting and owning your business. Not only is it the responsible thing for business owners to do, but it may also save you a lot of money down the road if any claims or incidents out of your control occur and involve unexpected expenses.

In this article, we'll discuss bakery insurance cost, baking from home insurance, how to insure a home bakery vs. how to insure a restaurant-style bakery, bakery insurance requirements, and show you the differences between the various bakery insurance policy choices. Let's deep-dive!

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Bakery Insurance Frequently Asked Questions

Before we get into the more technical aspects of baking business insurance policies, we thought that it would be a good idea to answer some of the most common questions that prospective business owners ask about bakery insurance coverage.

Bakery Insurance Cost - How Much is Insurance for a Bakery?

If you're wondering exactly how much does bakery insurance cost, then you'll be pleased to hear that it's actually quite affordable. In fact, the average bakery insurance cost is around $415 per year, or just about $35 per month in premium fees. However, home bakers insurance cost may get even cheaper as your space is smaller and many times your business is too. Plus, in most occasions home bakers deliver their good to their customers rather than have customers come to their home and buy their baked goods, which significantly reduces the risk of insuring home businesses as well as its cost. On average, home bakery insurance cost is about $25 per month - or $300 a year.

Of course, this is just the average bakery insurance cost and this number can vary, depending on how large your bakery is, the number of customers you serve, your zip code/city, and your annual revenue. However, new business owners with a smaller bakery or a home bakery shouldn't have to worry about the costs being too high.

Do You Need Insurance to Sell Baked Goods From Home?

Although it may not be a legal requirement to have insurance for baking from home, it's the smart decision to make. A simple home-based bakery insurance policy can protect your business against unforeseen events such as a fire, lost product, or one of your customers getting sick or injured from your food. Without it, you may end up with big unexpected financial loss due to such occurrences.

Insurance for Cake Business at Home: What Insurance do I Need for an At-Home Cake Business?

One of the most common insurance for selling cakes from home is public liability insurance for home bakers. Public liability covers you in the event that one of your customers sustains a loss or is injured from a service provided by your business.

For example, if a customer slips and falls in your kitchen or somebody cracks their tooth on a rock that made its way into your bread, then this type of small business insurance ensures that you don't have to pay out of pocket. 

However, you might want to have a broader coverage that is tailored to your specific business risks. Many times, Business Owners Policy (BOP) for home bakers answers that need, as it combines several vital business insurance coverages in one policy at lower rates. In many cases though, general liability insurance for home bakers might be enough, as it covers damages caused by your business activity to the public (customers), as well as business partners, vendors, etc.

Read More: Cake Making insurance

Do I Need a Business License to Purchase General Liability Insurance for my Bakery?

Yes, in order to purchase a bakery insurance policy, you'll need to have a legitimate licensed business. This means that you'll need to have your IRS-issued EIN number, and possibly your articles of incorporation, or local city business license/retail license handy to present to your insurance provider.

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How To Purchase Bakery Business Insurance

Now that we've answered some of your more pressing questions, here's a quick breakdown of the steps you need to take to purchase bakery insurance or home baking business insurance.

Step 1: Gather Your Business Paperwork

First, gather all of the necessary business paperwork that proves the legitimacy of your baking business. You'll also need to know the square footage of your workspace. If you have a home bakery, then you'll need to measure the area of your kitchen, storage, and preparation areas. If you rent a space, then you'll need to obtain the square footage from the landlord.

Step 2: Compare Bakery Insurance Quotes

If you want to get a good deal, it's always best to compare baking insurance companies and providers. You can easily do this online through this page, by hitting the get quotes button and following through with the smooth process. You will then receive free bakery insurance quotes online from the very best bakery and home baking insurance companies in competitive rates. 

Step 3: Determine Your Coverage Types, Limits and Deductibles & Complete Your Purchase

Once you have a list of quotes and your top choices, figure out which one is best for your needs in terms of company, coverage and budget and you will be able to complete your purchase fully online through our partners. You'll have to determine your coverage types, limits and deductibles ahead of your purchase. 

Different Types Of Business Insurance For Your Bakery

By now, hopefully, you have a good idea of how bakery insurance works. Next, we're going to explain the different types of commercial insurance that you'll be able to select for your bakery and the coverage that each type of insurance provides.

Public Liability Insurance for Home Bakers & Regular Bakery

Public liability insurance for home baking business is the most common type and is often referred to as commercial general liability insurance. Basically, it's designed to cover any event or insurance claim that comes from your customers. In a bakery, this could be:

  • A slip-and-fall accident

  • A burn from a hot plate/pan

  • A chair or table breaks

  • A sign falls

  • ...or other random occurrences

Keep in mind that public liability insurance is already included in general liability insurance policies, which covers a broader spectrum of risks, including damage that is caused by your bakery business operation to customers, business partners, vendors, etc.
Read more about Commercial General Liability Insurance

Commercial Property Insurance for Home Bakers & Bakery

Commercial property insurance is designed to protect your home business or restaurant business against any unfortunate accidents. For example, if your oven overheats and causes a fire that burns down your home or your restaurant kitchen, then your property insurance provides coverage to pay for repairs and even replacing your oven.

Read more about Commercial Property Insurance.

Food Product Liability Insurance for Home Bakers & Bakeries

This type of coverage can protect you against two things:

  • Financial loss from spoiled products.

  • Food that makes your customers sick.

Both of these occurrences can result in a significant expenditure out of pocket by the business owner. Having food product coverage can potentially save you thousands in the event that your freezer/fridge breaks, you're unable to sell your food, or you accidentally spread a food-born illness.

Read more about Food Business Insurance

Workers' Compensation Insurance for Home Bakers & Bakery

If you employ more than four people to help you run your bakery, then you'll need to purchase a workers' compensation policy. This will cover your employees' medical bills or lost wages due to any accidents sustained on the job.

Read more about Workers Compensation Insurance

Compare Bakery & Home Baking Insurance Quotes

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