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Bakeries – with Baking on Premises

Bakeries, much like any other food production businesses, can prove to be high risk environments to work in. Your staff will often need to use expensive pieces of equipment in order to produce all of those baked delights for customers to enjoy.

Bakeries are wonderful businesses to own because they make people happy. Everyone loves the taste and smell of fresh bread or warm muffins, cakes and pastries. Bakeries involve a lot of hard work and upfront investment to get started. Don’t put your hard-earned business success at risk by skimping on small business insurance. Commercial insurance is an investment that helps protect your company from the high cost of lawsuits that can arise due to accidents, illness or natural disasters.

General Liability
General liability insurance is a comprehensive package that helps protect your bakery against unforeseen events. It covers potential hazards and risks that are not specifically excluded in your business insurance policy.

General liability is extremely important for bakeries because you have so many customers going through your doors each day. If a customer injures themselves while on your premises, general liability will cover it. If a customer’s property is harmed in some way while they are at your business, general liability will cover that as well.

General liability protects your bakery if a customer is harmed or injured by the products you sell as well. It also covers you if previous services you provided are found to have harmed a customer in some way.

if you are interested in starting a bakery business from home, it is important to obtain the proper insurance. Failure to have the proper types of insurance coverage could expose you to serious financial risk. Before starting a home-based bakery, you should carefully consider the various types of insurance you may need to reduce these risks.
Product Liability
Perhaps the most important type of insurance coverage needed for a bakery business from home is product liability insurance. As the cost of medical treatment is very high, just making one customer sick from an improperly prepared food item could result in a significant financial loss. Product liability insurance will help to reduce the amount of financial damages you will be responsible for in the case of a claim. If you plan to sell baked goods to a retailer or wholesale distributor, the retailer or distributor may require proof of product liability insurance before buying your products.

Types of Insurance Needed for a Bakery

Like many small businesses, the insurance coverage needed by a bakery starts with general liability coverage. This foundational coverage protects you against premise liability claims, such as a slip and fall, and products claims, meaning the baked goods you sell. In addition, at Safeguard Insurance we offer many other coverage enhancements to protect your bakery business:

  • Property insurance for your building, tenant improvements, inventory and equipment.
  • Crime insurance including robbery and employee dishonesty.
  • Loss of income coverage, actual loss sustained up to 24 months.
  • Equipment breakdown for your production, hvac, and refrigeration equipment.
  • Spoilage coverage for perishable inventory and supplies.
  • Commercial auto insurance for business use or delivery vehicles.
  • Workers compensation to protect you from employee injuries.
  • Group or individual health insurance.