If you've ever considered starting your own cooking business, cake business, cookie business, opening a corner deli, or even starting your own home bakery , then you'll have to make sure that your business is properly insured from unexpected financial losses. Many business insurance companies offer cooking insurance policies that are designed to provide cooking business owners with coverage against events that are out of their control.

Cooking insurance is very similar to purchasing coverage for any other small business, for example, restaurant insurance and food truck insurance. The only difference is that your cooking business insurance will be geared more towards baking and food and the potential damage that it could cause your customers. This means that you may need to purchase additional insurance such as food product coverage or bodily injury liability. However, cooking, cake and cookie business insurance are less of a risk to insurers on some other aspects, which make its costs fairly low, normally. (that always depend on the specific business)

In this article, we'll start by going over some of the most commonly asked questions about cooking insurance. Then, we'll go over the various types of cooking insurance policies that you'll come across and explain how to select the best policy that your personal cooking business needs.

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Cooking Insurance FAQ

Let's start off by answering some of the most common questions online about cooking insurance, restaurant insurance, as well as the difference between them and what type of coverage you may need for your new cooking business!

What Insurance do I Need to Sell Food?

The most common type of cooking-related insurance that you'll need is a public liability insurance policy. This covers anything out of the ordinary that could happen to your customers and protects you against third-party claims due to customer injuries, getting sick, etc.

Additionally, if you're renting (or mortgaging) a space for cooking and selling your food, then you'll also need commercial property insurance coverage to cover any damage to your equipment or the building in the event of a fire, flooding, or another catastrophe. Below, we'll discuss the various types of coverage in greater detail.

Many times, BOP insurance (Business Owners Policy) consists of several coverage types that you may need as a cooking business owner at cheaper rate. However, you'll have to compare quotes and make sure that it does not include coverages that you do not really need and that it does pay off to get this policy over buying the coverages you really need for your business separately.

Do Personal Chefs Need insurance?

Yes! All licensed personal chefs should at least have a general liability policy to protect them in the event that one of their customers is sick, accidentally injured or other claims. For instance, if you're cooking for somebody in their home and you accidentally break an expensive vase, then your insurance should help to cover the cost of replacing the vase and prevent any legal repercussions.

Do I Need Cake Decorating Insurance?

Insurance for cake decorators is something that you may want to pursue if you have a cake decorating business. However, a general liability cake maker insurance policy can really come in handy if you ever get accused of violating a food allergy rule or accidentally damaging somebody's expensive cake.

For example, let's say you're hired to decorate an expensive wedding cake that a client paid $5,000 for. Now, let's say that you accidentally damage it and the bride and groom try to sue you. Your insurance will prevent you from getting sued and ensure that your clients receive compensation for the loss.

Do I Need Insurance if I Rent a Commercial Kitchen?

Many food trucks, bakers, and personal chefs rent a commercial kitchen space where they can prepare their food for events. It's often more cost-effective than renting an entire restaurant space and provides them with access to a DHEC-approved kitchen and top-of-the-line equipment.

Many commercial kitchens require their patrons to keep a commercial kitchen insurance policy to pay for any damage that they inadvertently cause to the kitchen. For example, if you cause a fire and the oven needs a $1,000 repair, then your commercial kitchen insurance can help you pay the costs.

Do You Need Insurance to Sell Home Baked Goods?

While you don't need insurance for sell cakes and baked goods from home, it's a smart idea to at least keep some basic insurance for cake business at home. Public liability insurance for cake makers and home bakers provides a basic level of protection against any claims made by the public (customers) that your baked goods caused illness or injury. However, what we recommend is getting it within general liability insurance for cake makers, as GL covers your cake making business from both the public, but also business vendors and partners, etc.

Is There a Difference Between Cooking Insurance and Bakery Insurance?

Cooking insurance and bakery insurance both fall under the broad umbrella of commercial restaurant insurance. The only difference is how much coverage you'll need. Generally, bakeries and small cooking businesses require less coverage than a full-scale public restaurant or bar.

How Much is Insurance for a Small Restaurant?

The average cost to insure a small restaurant in the United States is around $2,080 per year, which equates to around $175 per month. This is for a basic public liability insurance policy. If you want to add on additional insurance coverage such as property, food product insurance, or workers' compensation, then you'll usually need to pay extra.

Different Types of Cooking Insurance

Now that we've helped to answer some of your questions, let's take a few minutes to break down the various types of cooking insurance and cake making insurance that you'll be able to choose from for your small business.

General Liability & Public Liability Insurance for Cake Making

One of the most common policies is public liability insurance for cake making. As we discussed earlier, these policies are designed to cover any damage that may happen to your customers. It helps to mitigate any risks from food contamination, customer injury, or other claims that come against your cake making business. That said, we recommend getting general liability insurance for cake making as it protects from claims made against your business from both the public (customers), as well as vendors, business owners, partners and other entities that come in regular contact with your business. In most cases, it is also more cost-effective.

Commercial Property Damage Coverage (For Equipment and Restaurant Space)

Whether you own a home bakery or rent/mortgage a professional space, this type of insurance ensures that you're covered against damage to the building or your equipment. Fires are a come safety issue in kitchens and are often blamed for burning down entire buildings or rendering a $10,000 stove unusable.

Food Product Coverage

If you have a large fridge for food storage, then it's likely that you have hundreds or even thousands of dollars worth of uncooked food that you've paid for. What if your fridge breaks one day and all of the food spoils, though? Your food product coverage policy can help you cover the cost of lost goods so that you don't lose everything.

Workers' Compensation

If your kitchen or restaurant employs more than four individuals, then most states legally require you to have workers' compensation coverage. This pays for any medical bills and lost wages if any of your hard-working employees are hurt while working in your place of business.