Cottage Food Law Insurance
Do You Cook From Home? Why Not Buy Your Business Insurance From Home?
Cottage Food Law Insurance Benefits
Discover the benefits of what cottage food law insurance can bring to your business.
Completely Online
Get your quote, tailor your coverage, and purchase your policy all from the comfort of your home faster than you could say homemade cinnamon rolls.
Product & Equipment Protection
Protect your business from expensive food poisoning claims and even protect your priceless stove where you make your delicious homemade jams and jellies.
Affordable & Personal
We keep it affordable with USA-based agents who don’t make commission. We keep it personal by giving you the power to increase your limits to give your custom cakes the coverage it needs.
What Is Cottage Food Insurance and Why is it Important?
Cottage food insurance covers people who make food in their homes and sell it to the general public. It may help you pay for third-party claims of injury or damages, and meet contract requirements to sell at events or local shops
Just like with any business, there is the potential for accidents to occur. General and product liability insurance can help protect you from the risks of serving food from your own home. You can also use tools & equipment coverage to insure the items you use to make your tasty treats.
Imagine if you bake a fresh batch of homemade chocolate chip cookies for a customer. Later you find out the cookies contained traces of peanuts and the customer had a severe allergic reaction. They sue you for unlabeled allergens and now you owe them several thousand dollars in medical bills and fees.
Without cottage food law insurance your small business could be facing financial ruin. However, with insurance, you can file a claim and FLIP may be able to pay out your customer.
How Much Does Cottage Food Law Insurance Cost And What Does It Cover?
You can get your cottage food insurance policy starting at $25.92 per month – and we also offer an annual policy starting at $299 a year. Our base cottage food law insurance policy covers up to $2M in general and product liability.
Need more coverage? You have the option to increase your limits and cyber liability coverage, additional insureds, a trailer endorsement, and up to $50k in tools & equipment coverage.
Do I Need Insurance To Sell Baked Goods From Home?
While you don’t legally need insurance to sell baked goods from home, you’ll likely be required to have insurance if selling your treats at events or other businesses. This is because they don’t want to assume the liability of your products if an accident occurs.
You also cannot insure your business with your homeowners or renter’s insurance. These policies typically won’t cover you for any for-profit activities or claims. With the average defense lawyer charging $250/hr, and the average claim totaling $10,000, a single accident could cripple your business financially. Because of this, you need insurance to operate your business from home with peace of mind.
Let's Talk About Numbers for Cottage Food Law Insurance
Cottage Food Law Coverage Details
General Liability
Aggregate Limit: $2M
General liability helps to protect your business from third-party bodily injury and property damage claims caused by your business operations. For example: if a customer came by your home to pick up an order, and they slipped on water in your kitchen, this coverage could help pay for their injuries.
Product Liability
Aggregate Limit: $2M
Product liability insurance can help you cover the cost of injuries or damages caused by the goods you sell. Unfortunately, food poisoning is a natural hazard for any food business. This type of coverage may lower or eliminate the costs associated with food poisoning claims—as well as other standard product liability claims.
Cyber Liability
Aggregate Limit: $100K
Cyber liability insurance helps your business recover from cyber attacks—such as a data breaches or phishing scams. Someone may hack into the electronic payment system you use, or use malware to steal customer data from your computer. This coverage helps you retrieve lost or stolen data, and refund stolen business funds.
Damage to Premises Rented
Aggregate Limit: $300K
Damage to premises rented can help protect your business from the cost of repairing and damages done to a location because of your business operating there. For example, an accidental fire started in a commercial kitchen space you rented for an event, or scuffs your booth display left on the floor of an event venue.
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Coverage Details Limits
General Liability Aggregate Limit
$2,000,000
Products – Completed Operations Aggregate Limit
$2,000,000
Personal and Advertising Injury Limit
$1,000,000
General Each Occurrence Limit
$1,000,000
Damage to Premises Rented to You Limit (Any One Premises)
$300,000
Liability Deductible
NO DEDUCTIBLE
Business Personal Property\ Inland Marine Limit (Any One Article/ Aggregate)
$5,000/$10,000
Business Personal Property\ Inland Marine Limit (Per Occurrence) – Deductible
$250
Medical Expense Limit
$5,000
Have Questions? We're On It.
A cottage food business is any food business—baked goods, dessert, or food—that is made or prepared from your home. Liability insurance for cottage food businesses can protect against third-party claims such as food poisoning or property damage.
Cottage food laws help to regulate bakers and business owners who make and sell food from their homes. Laws typically vary by state but often include registering your business, getting a license, and earning your food handler’s permit. They also help alleviate small businesses from adhering to commercial kitchen laws and restrictions.
In order to protect your home-based business from claims, you will need cottage food law insurance. This will include general liability insurance and product liability insurance.
General liability insurance helps protect against third-party injury or property damage. Product liability insurance is important because it can help financially protect you from the repercussions of food poisoning.
You can also add tools and equipment, so if your baking equipment is damaged in a flood or stolen in a burglary, insurance can help repair or replace the equipment. We offer several different limits depending on your business needs.
We recommend protecting your business with a cottage food law insurance policy before starting your business so you are protected the moment you start selling your product.
Without cottage food law insurance, you will be shouldering the cost of claims all on your own. This could mean paying for medical bills, legal fees, repair costs, etc.
Some examples of what FLIP’s cottage food business insurance could help protect you from:
- Unexpected medical costs from a customer who fell ill with food poisoning from the food they purchased from you.
- The cost of repairing damaged equipment from a flooded kitchen.
- Losing customers because you’re not a licensed and insured business.
- Lost revenue due to your online ordering system experiencing a cyber security attack.
Get a quote today and start protecting your business!
As a FLIP policyholder, you’ll get
- 24/7 access to certificates of insurance, policy documents, and additional insureds, through your user dashboard.
- The knowledge of our insurance agents. Contact an agent today to receive answers to all your insurance questions.
- A cheap policy premium because our agents don’t make a commission off helping you.
- Unlimited additional insureds free of cost.
You get all of these added benefits on top of your comprehensive cottage food liability insurance policy. FLIP is here to help.
Yes. To add an additional insured to your cottage food insurance, simply log in to your user dashboard and add your additional insured’s information.
