If you run a bakery business, you already understand the risks and potential financial fallout due to accidents, lawsuits, or unexpected events.
That’s where comprehensive insurance coverage comes into play. Let our experienced agents find you a tailored solution that is right for your bakery business.
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What is Bakery Insurance?
Bakery insurance is a comprehensive type of small business insurance that offers specific protection for your unique operations. This protection typically includes:
Who Needs Bakery Insurance?
Insurance for bakeries isn’t limited to big commercial establishments. Smaller businesses like home bakeries also need protection too. Here is a short list of some businesses that need bakery insurance:
Pastry shops
Bagel and Donut Shops
Wedding Cake Shops
Cafes
Common Bakery Accidents
When it comes to bakery accidents, there are a number of common risks that need to be addressed.
Burns and Scalds
Hot ovens, boiling water, and steam from baking equipment can cause severe burns and scalds.
Cuts and Lacerations
Sharp knives, dough cutters, and other baking tools can lead to cuts and lacerations.
Slips and Falls
Spilled flour, water, and other ingredients on the floor can create slippery conditions, leading to falls.
Fire Hazards
Overheated equipment, electrical malfunctions, and the presence of flammable materials can result in fires.
Bakery Insurance Coverage Options
So what are the essential coverages that you need to consider for your bakery? Below you will find a breakdown of the most important types of bakery insurance.
General Liability Insurance
General Liability Insurance is essential for bakeries to protect your business against claims of bodily injury, property damage, and personal injury that can arise from daily operations.
For instance, if a customer slips and falls on a wet floor in your bakery, this policy would cover their medical expenses, any legal fees associated with the claim, and potential settlements.
Commercial Property Insurance
Commercial Property Insurance is crucial for safeguarding your bakery’s physical assets, such as the building, equipment, and inventory. In the event of a fire, theft, vandalism, or natural disaster, this insurance provides coverage to repair or replace damaged property.
For example, if a fire breaks out and damages ovens, mixers, and a substantial amount of inventory, this policy would help cover the costs of repairs and restocking.
Commercial Auto Insurance
Commercial Auto Insurance is necessary for bakeries that use vehicles for business purposes, such as delivering baked goods to customers or transporting supplies.
For instance, if your delivery van is involved in a collision while transporting a large order, this policy would cover the repair costs, medical expenses for any injuries, and liability claims from other parties involved in the accident.
Workers’ Compensation Insurance
Workers’ Compensation Insurance is vital for protecting your employees who suffer work related injuries or illnesses. This insurance policy provides benefits such as medical expenses, rehabilitation costs, and a portion of lost wages during recovery.
For example, if a baker sustains burns from handling hot trays or cuts themselves while using sharp knives, the policy will cover their medical bills and compensate them for lost income while they are unable to work.
Bakery Insurance Costs
On average, a business owner’s policy for bakeries costs about $65 each month, and workers’ compensation coverage typically costs approximately $165 monthly.
Insurance costs for bakeries are tailored directly for your business’s particular needs. Therefore, costs can vary and we encourage you to get an online quote from us. Several factors can affect the cost of your bakery’s insurance.
Business Location
Operation’s Scale
Annual revenue
Claim history linked to your business
Coverage options and limits
FAQs About Bakery Insurance
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