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The Ultimate Guide to Bakers Insurance: How to Protect Your Bakery Today

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If you think about it, bakers insurance is kind of like the thirteenth loaf that constitutes a “baker’s dozen.” Let me explain:

Back in the days of Olde England, bread was sold by weight. In fact, the law—dictated in 1266 by His Majesty King Henry III—stated that bakers could be fined for selling underweight bread. As a result, many bakers began including additional loaves, called “in-bread” or “vantage loaves”, to make sure their orders were above weight and thus avoid the hefty fee.

Providing extra bread probably wasn’t easy for the bakers. In fact, they probably lost a little money with each additional loaf they gave away. But if you could have asked the bakers, I think they would have said the extra cost was worth it because it kept the tax man away.

Just like that extra loaf, insurance can protect your business from the hefty cost of insurance claims. Don’t believe me? I don’t blame you. After all, insurance—like medieval history—can be confusing… and more than a little boring.

In this article, I‘ll help you clear up any confusion by 1) walking you through the basics of bakers insurance and 2) providing you with the information you need to protect your business from the cost of claims. Let’s get started.


As a food industry business, your bakery has risk.

In the world of insurance, “risk” means your business operation has the potential to cause something bad to happen to someone—or something. It also means there’s a chance that someone or something else could cause your business harm.

There are lots of examples of risk for bakeries, including trip and fall accidents, property damage, foodborne illness, and more. In fact, there are quite a few risks involved with running a bakery and most of them result in someone getting hurt, something getting broken, or something getting stolen—usually your business equipment.

Accidents involving your business can be expensive. If your bakery were to be sued for an accident it caused, you could be found liable to pay thousands of dollars for injuries, damages, and more. Even if you aren’t found liable, the cost of legal defense can be financially crippling. That’s where bakers insurance can help.

Bakers insurance is a liability insurance plan specifically designed to protect bakers from the unique risks associated with running a bakery. At FLIP, we’ve helped thousands of businesses reduce or in some cases eliminate the devastating out-of-pocket costs that arise from accidents involving your business. In other words, it creates a financial safety net that protects your bakery and allows you to continue running your business with peace of mind.


No two bakeries are exactly the same, that’s why you need liability insurance that fits your business needs. Luckily, at FLIP you can customize your coverage to create an insurance plan that perfectly fits the needs of your bakery.

Every bakers insurance plan comes with two policies—general liability and inland marine/business personal property—to cover the majority of basic risks associated with running a bakery. However, according to your business needs, you can also include several additional policy options to receive extra coverage for your business.

FLIP’s bakers insurance plan includes…

  • General Liability – $2 Million Aggregate: can protect your business from the cost of third-party bodily injury and property damage claims that arise as a result of your business operation. As a food industry business, this also covers claims that your baked goods made a customer sick.
  • Inland Marine/Business Personal Property – $10K Aggregate: can protect your business from the cost of repairing or replacing your damaged or stolen business equipment. This includes damages resulting from accidents such as a fire.

Additional policy options include…

  • Excess Liability Limits: increases the aggregate limit of liability for your business by $1 or $2 million according to your business needs.
  • Trailer Endorsement: extends your liability coverage to your food trailer while it is parked on a premise. This option is not necessary if you do not have a food trailer.
  • Professional Liability – $200K Aggregate: can protect your bakery from the cost of third-party negligence claims that arise from your business operation. This policy option is recommended if you offer demonstrations or lessons as part of your business operation.
  • Cyber Liability – $100K Aggregate: can protect your business from the cost of claims that arise as a result of a cyber security breach within your business. This policy is recommended if you collect or store business data, including customer payment information, electronically on a computer, tablet, or mobile device.


For as low as $299 per year or $25.2 per month, you can protect your bakery with up to $2 million in coverage for general liability as well as $10K in inland marine/business personal property coverage. When you do the math, that’s less than one dollar a day to ensure that your business gets the protection it needs.

Of course, there are many factors that go into calculating the price of insurance, like your bakery’s gross sales and the different policy options and limits you selected. You can follow the link below to receive an instant online quote free of charge, no strings attached.

When looking at insurance prices, it’s important to compare the cost you pay per policy provided as well as how much coverage each policy provides. By doing this, you’ll be able to find an insurance plan that covers all your business needs to the best price possible.


In the unfortunate event that your bakery gets involved in an accident, it can sometimes be hard to know what to do to get covered. With FLIP, you have 24/7 access to an online user account where you can access your policy, file a claim, and make any necessary changes to your policy according to your business needs.

To file a claim:

  1. Log in to your FLIP user account
  2. Under the “Manage Policies” section, click on the button labelled “File A Claim”
  3. Fill out the correct information on the provided form
  4. Submit your claim

After submitting your claim, you will be contacted by a claims adjuster who will walk you through the rest of the claims process. If you have any questions, you can always contact one of our licensed agents to help you out.


After almost 600 years of regulating the price of bread, the law responsible for creating the “baker’s dozen” was eventually repealed in 1863. Unlike that law, however, the risk of fines for bakers has only increased with the years.

Like the extra loaf of bread, bakers insurance can protect modern-day bakers from the cost of claims that arise from their business operation. If you haven’t already done so, you should check out FLIP’s liability insurance plan for bakers. Not only is it comprehensive and affordable, it’s also easy to get started with an online process that takes less than ten minutes to complete.

Does getting insurance cost a little extra? Sure. But just like the bakers of Olde England probably thought: at the end of the day, isn’t the protection worth it to keep the tax man away?

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