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 to 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.
