Insurance for Cake Businesses
The main reason that you need insurance to sell cakes is so that you are not financially liable if a customer faces an issue with your product. The type of insurance you need will depend on factors such as whether you have employees or sell goods from a storefront. Many insurance packages for home bakeries include: general liability insurance to protect against personal injury or property damage; product liability insurance to protect if your product harms a customer; coverage for damage to a rental if you regularly rent a commercial kitchen. Even if you sell a small quantity, decorated cakes can cost $25-$120 depending on size and design. Ultimately, the public – your customers – need to be kept safe. As a home bakery, food insurance will protect yourself, clients and your business. Different business factors determine required insurance. Our industry-specific policies ensure baked goods businesses are covered sufficiently to protect against damages and legal costs whether selling online, at fairs/events or in a shop. Carrying insurance gives peace of mind if something goes wrong. The key reasons are protection if a customer gets sick or you damage property.
What Insurance do you need for a Cake Business?
What insurance do you need for a cake business? Take out home business insurance. Public liability insurance and product liability insurance (usually sold together) can cover you if someone becomes ill after eating one of your cakes, or if you accidentally damage a customer’s property when delivering your cakes.
Do you need Insurance for a Bake Sale?
When planning a bake sale, it’s important to have the right insurance in place. Whether you’re selling food or products, having proper liability insurance can help protect your business from any potential legal or financial issues.
In most cases, bake sales are considered public events and generally fall within the realm of liability insurance. However, if your event falls outside of the scope of liability insurance, you may still need to have it in place.
With the right insurance in place, you can focus on your passion for baking and the success of your business.
What Insurance Does a Bakery Need?
What insurance does a bakery need? At a minimum, general liability insurance, commercial property insurance, workers’ compensation insurance, and possibly home-based business insurance. Bakery startup costs range from $10,000-$50,000. Ongoing costs include utilities, rent, salaries, ingredients, and insurance.