Close this search box.


A business owners policy (BOP) is designed specifically for small businesses such as your bakery. It is a commercial insurance policy that offers combined coverage. It includes general liability, and adds property protection and intangible asset losses.

Whether you own a small neighborhood bakery or a large chain of bakeries, you will need to protect your business and finances with a variety of insurance policies. These policies include:

  • Workers compensation insurance: Burns and other work-related injuries are not uncommon in a bakery setting. Workers compensation provides medical coverage for employees who are injured on the job and is required by law in nearly every state. You can buy this coverage through your state’s worker’s compensation insurance program or through a commercial insurance provider. Refer to your guidelines or speak with an independent agent in the Skyscraper insurance for more information.
  • Unemployment insurance: This coverage is included in your state taxes. Once you establish and register your bakery with your state’s workforce agency, they will begin collecting taxes and your business will be covered.

Bakery insurance will protect your small business from the potential hazards that can lead to financial devastation. Some coverage options you should consider are the following:

Liability: Bakery liability insurance typically has two parts, and each offers coverage for the risks you may face in your place of business. In each case, all related court costs and legal fees are included in the coverage.

  • General liability: If a customer is injured inside your bakery or in the parking lot and feels that you are responsible, you may be sued for damages. General bakery liability insurance provides coverage against lawsuits brought on by third-party injuries.
  • Product liability: If your baked goods become contaminated with hazardous particulates such as broken glass, or with a food-borne illness such as salmonella, your product liability insurance will provide coverage against related liability claims.

Property: Property coverage comes in two parts. Be aware that in most cases, flood damage is excluded from this coverage, so you will need to purchase a separate flood insurance policy if your business is at risk for flooding.

  • Building coverage: This is necessary only if you own the building in which your bakery is housed. It will provide compensation for damages to the building’s structure in the event that it is severely damaged by fire, inclement weather, vandalism or any other covered catastrophes.
  • Contents coverage: If a covered event leads to damages to your property within the building, including kitchen appliances, display shelves and artwork, this insurance will provide compensation. Covered events often include severe weather, fire, falling objects, vandalism and theft.