Bakery Insurance

Bakery Insurance for Small Business Owners

Bakery owners face unique challenges, like:

Fire risks
Damages to your bakery’s expensive equipment
Employee injuries and illnesses due to their work

That’s why you need the right bakery insurance to help protect your business. Even if you have a home bakery, insurance is an essential part to your success.

We take the time to understand your unique needs so we can offer the business insurance coverages that help you run a successful bakery.

Who Needs Bakery Insurance?

Bakeries
Pastry shops
Home bakeries
Cafés
Wedding cake shops
Donut and bagel shops
Manufacturers for bread, rolls, pies, cookies and pretzels

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Average Cost of Bakery Insurance

Many bakery owners should consider getting a Business Owner's Policy (BOP) as a foundation of their bakery insurance, which combines three essential types of coverage. Our customers paid an average of about $85 a month for coverage.¹

Be aware that insurance companies use different factors to determine a bakery business’ insurance costs. One of those factors is the type of coverage you need to protect your bakery from financial loss. Prices vary between different insurance coverages.

The best way to find out how much insurance for a bakery will cost is to get a quote.

What Are the Best Coverages To Have for Bakery Insurance?

A BOP is a good starting place for many bakery owners. It includes:

General liability insurance, which helps cover claims that your bakery caused bodily injury or property damage to someone else. So, if your employee accidentally drives into a customer’s mailbox while delivering a cake, this type of liability insurance protects your business and can help cover repair costs.

Commercial property insurance covers the owned or rented building your bakery is in, as well as the equipment you use to run your business. This includes your bakery’s:

Ovens
Stoves
Mixers
Sheeters
Inventory

Business income insurance to help replace lost income if you can’t operate because of covered property damage. So, if a fire damages your building, destroys your baked goods or you can’t open while repairs are done, this insurance can help cover your lost income. This coverage can help pay ongoing expenses like bills, rent and payroll.

You may need to get additional insurance coverage for more protection. Be aware that some states may also have bakery insurance requirements, like carrying workers’ compensation coverage if you have employees.

Covering Your Bakery Team

Your bakery business team is a key part of your success. That’s why protecting them is so important. With the right type of bakery insurance, you can help protect your employees – and your business – from many risks.

Burns can cause your employees to miss over 17 days of work.²

Employee Injury

“My pastry chef burned her hand while baking a cake. I had her go to urgent care to get it looked at. Luckily, it wasn’t as bad as it seemed, but she still needed o take a few days off work.”

Workers’ compensation insurance gives your employees benefits to help them recover from work-related injuries or illnesses. With our coverage, employees can access over 1 million providers and more than 65,000 pharmacy locations in the country.

Auto Accidents

“One of my employees was delivering a cake to a party. On the way there, he got into a car accident and the other driver was taken to the hospital. They ended up suing our bakery for their hospital costs.”

Commercial auto insurance can help protect you and your employees on the road if you drive a business-owned vehicle for work. It can help cover medical expenses and costs to repair damaged property.

Covering Your Bakery’s Property

From double ovens to dough molders, we know it’s a big investment to run a bakery. With bakery insurance coverage, we can help get your equipment replaced or fixed if anything breaks down because of damages.

A bakery’s fully stocked kitchen can cost tens of thousands of dollars.³

Spoiled Products

“We were delivering a cake to a client for their wedding when our truck’s air conditioning unit broke down. The heat caused the cake frosting to melt and some of the fruit to spoil.”

We offer coverage for perishable goods in transit. So, if there’s damage due to a mechanical breakdown or from getting overturned in a collision, this coverage can help pay for the loss.

Food Contamination

“A few customers got sick after eating some of our sandwiches. It turns out the lettuce shipment we got was contaminated. The local Department of Health shut down our café while they investigated.”

Our Business Income for Food Contamination can help recover some of your business’ lost income if a government agency shuts it down due to food contamination.

Covering Your Bakery’s Operations

We understand running a bakery is hard work. Bakery insurance can help protect you from customer injury lawsuits and other claims that can negatively impact your business.

Slips and falls account for over 1 million visits to the emergency room per year.⁴

Customer Injuries

“A customer came in with her grandma to look at our display cakes. Her grandma ended up slipping on our freshly mopped floor and we had to call an ambulance.”

General liability insurance can help cover claims that your bakery caused someone’s injury. It can help pay for their treatment costs and your legal expenses if the claim leads to a lawsuit.

Customer Intoxication

“Once a month, we host a cake class where we serve locally-made wine. Now, we limit each guest to one glass. We made that rule when a customer crashed her car into a neighbor’s fence after having too much to drink. The business owner sued our shop for damages.”

Liquor liability insurance can help protect your business if an intoxicated person hurts someone or damages another person’s belongings after your bakery served them alcohol.

Bakery Insurance That Has Your Back

We’re an insurance company with over 200 years of experience. We make it our job to know the risks each industry faces so we can offer specific coverages that will help protect each business. We know what’s important to bakers, and our bakery insurance proves that. We’re here to help protect your passion and keep your small business running successfully.

Discover more food service-related professions we insure:

Bakery Insurance Especially Made for Your Business

Get the protection you need with a baker insurance company that has your back.

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