Cooking Insurance, Cake & Cookie Business Insurance

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Consider getting insured if you run a cooking business that works with restaurants and delis. You get the most comprehensive coverage against unique exposures by buying cooking insurance. Cookie manufacturing, cake making, and cooking insurance are risk management solutions that’s made up of different business insurance policies. Read this guide to learn what are the specific inclusions, the cost of premiums, and the best insurance companies to work with.

General Liability Insurance For Cake Makers, Cooks, And Cookie Manufacturers

General liability insurance is always included in cooking professional, cookie manufacturer, and cake maker insurance programs. Use the table above to compare the features of general liability insurance from companies we recommend. 

You need general liability insurance to cover claims for bodily injuries or property damage that clients, independent contractors, food delivery men, vendors, and other third parties file. General liability insurance is useful when:

• An independent contractor sustains a burn or cut while repairing your kitchen’s stove, gas pipes, and other utilities 

• A client slips and falls while in the premises of your business

• A food delivery personnel gets involved in an accident while running an errand for your business 

By having a general liability policy ready, your business can cover these costs each time third parties file a claim for bodily injuries or property damage:

• Medical treatments

• Compensation for the damaged property

• Legal expenses such as attorney fees, court filing fees, and investigation fees

• Court judgments

Similar to the general liability insurance of food trailer businesses, food carts, hot dog carts, bakeries, vending machine operators, and other food vendors, the general liability insurance of your business  automatically comes with add-ons. 

Add-ons allow your general liability insurance to grant further protection. These are the most common:

• Product liability insurance-Helps cover costs if the food you cooked for clients causes food poisoning and allergic reactions.

• Rented premises liability coverage/tenant legal liability coverage-Allows you to reimburse the losses of the landlord if a rented or leased commercial food manufacturing facility sustains damage because of fire 

• Hired/non-owned auto liability coverage-Takes care of medical treatments if a vehicle you hired or borrowed for commercial purposes causes damage 

A general liability policy can be used as home cooking insurance and home based and cookie manufacturing coverage because it can also provide protection for cooks, bakers, and cookie manufacturers who work at home. 

Public Liability Insurance For Cake Makers, Cooks, And Cookie Manufacturers

Public liability insurance for cake makers, cooks, and cookie manufacturers grants protection against claims for bodily injuries or property damage. It works similarly to general liability insurance. In the UK, public liability insurance is offered as a stand-alone policy with optional add-ons. In the USA, this is offered as part of general liability insurance, food liability insurance, or events insurance plans. 

Professional Liability Insurance For Cake Makers, Cooks, And Cookie Manufacturers

As a cooking business, you make money through your services just like pizza delivery men,  bartenders, caterers, and personal chefs. And so, you’re professionally liable for any issues that arise while working for a client. 

General liability insurance isn’t enough. Insurance companies allow you to add a professional liability policy to your cake making, cooking, and cookie insurance plan. This will cover defense costs, settlements, and other related costs when:

• A client files a claim because you failed to deliver goods on time

• A client files a claim because you negligently prepared the food , and this resulted in spoilage and contamination

• A client accuses you of inflating the cost of your services

• A client accuses you of leaving a work unfinished in order to cater to a more important and expensive gig

Professional liability insurance is offered as a stand-alone policy. But still, it’s possible to get this insurance as an add-on to general liability insurance for convenience. Use the table above to compare the professional liability insurance of companies we recommend. 

Commercial Property Insurance For Cake Makers, Cooks, And Cookie Manufacturing Businesses

Aside from general liability and professional liability insurance, consider getting a tailored commercial property insurance for cake makers, cooks, and cookie manufacturing businesses. Use the table above to compare the commercial property insurance of companies we recommend.  

Commercial property insurance covers the kitchen or food manufacturing space you own, rent, or lease to make cakes, manufacture cookies, or create meals for clients. This will grant reimbursement if the kitchen or food manufacturing facility gets destroyed or damaged because of:

• Fire

• Theft

• Vandalism

• Weather

• Volcanic action

• Sinkhole collapse

• Vehicle

• Aircraft 

• Other covered perils

Aside from the kitchen or food manufacturing facility, commercial property insurance also covers any equipment inside such as stoves, cooking appliances, ingredients, and other valuables. 

Some insurance companies include a home-based business coverage wording in the language of a commercial property policy and allow you to use it as an insurance for cake business at home.  

Food Spoilage Insurance

Just like grocery stores, farmers market stalls, juice bars, wineries, ice cream manufacturing businesses, and brewery businesses, you rely on raw ingredients to make food and complete a service for a client. 

It’s very devastating if ingredients in-stock spoil. You’ll have to face losses and even have your operations interrupted. 

Food spoilage insurance can help you in such situations. This is an optional add-on to commercial property insurance that will recover the value of ingredients that got spoiled because of:

• Prolonged power interruption

• Contamination

• Food mishandling

• Employee error

Business Owner’s Policy For Cake Makers, Cooks, And Cookie Manufacturing Businesses

You can combine general liability and commercial property insurance. The result is a business owner’s policy which is cheaper than when you bought the aforementioned policies separately. This is easier to manage too. 

It’s possible for your business owner’s policy to offer add-ons. Depending on the insurance company, you can avail professional liability, cyber liability, equipment insurance, and others from it. 

Other Policies You Might Need 

Commercial Auto Insurance

Consider getting commercial auto insurance if you own a food trailer, food truck, or concession trailer. Commercial auto insurance will help you cover expenses in case a vehicular accident happens. This will also cater to costs if your trailer or truck sustains damage because of fire, theft, vandalism, and other covered perils. 

Workers Compensation Insurance

Workers compensation insurance is useful if you have one or more employees. Employing people without this insurance can result in fines and penalties. So what does workers compensation insurance do? This will cover the cost of the following if an employee sustains a work-related injury or disease:

• Medical treatments

• Hospitalization

• Medication

• Rehabilitation and retraining

• Lost wages

• Death benefits

Liquor Liability Insurance

Purchase liquor liability insurance if you’re involved with the sales or manufacturing of alcoholic products just like distilleries and liquor stores.  With liquor liability insurance, you can take care of costs if a consumer of your alcoholic product files a claim for bodily injuries or property damage. 

Cake Decorator Insurance

You’ll rarely find a stand-alone cake decorator insurance program. As a cake decorator, your best bet of getting covered is by availing a bakery insurance or cake maker insurance plan. Another way of getting cake decorating insurance coverage is by qualifying for a personal chef insurance that covers pastry chefs. 

Cooking, Cookie Manufacturing, And Cake Making Insurance Cost

Cooking, cake making, and cookie manufacturing businesses pay $25 per month or $300 per year for a $1 million general liability insurance. This assumes a business profile of 5 employees with an annual revenue of $500,000-$750,000. Factors that affect the cost of premiums are:

• Claims history

• Business history

• Number of employees

• Location

• Revenue

• Payroll

For further idea about the cost, take a look at this table that shows how much the recommended companies charge for a $1 million general liability insurance for cake makers, cookie manufacturers, and cooks: