Do you cook from home? Why not buy your business insurance from home?

*Annual plan starting at $299/year

Cottage Food Law Businesses We Cover

Home-based businesses that need cottage food insurance:

  • Pastry bakers
  • Cakes and cupcakes
  • Homemade bread
  • Homemade cinnamon rolls
  • Delicious desserts 
  • Jams, jellies, and preserves
  • Candies 
  • Seasoning and dry mixes
  • Popcorn and popcorn balls
  • Cereal, trail mixes, and granola

If you do not see your business type listed, contact our USA-based agents today. 

What Is Cottage Food Law Insurance?

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 owe them several thousand dollars in medical bills and fees. Without cottage food law insurance your business could be facing financial ruin. However, with insurance, you file a claim and FLIP pays out your customer. 

Typically, insurance for cottage food businesses can include general liability insurance, product liability insurance, and damage to premises rented insurance. General liability insurance and product liability insurance can both help in the above situation.  

How Much Does Cottage Food Law Insurance Cost?

You can get your cottage food insurance starting at $299 per year or $25.92 per month. Need more coverage?  You have the option to increase your limits and additional options. Our base cottage food law insurance policy covers up to $2M in general and product liability. It also covers up to $10K in business equipment coverage.

Do I Need Insurance To Sell Baked Goods From Home?

The average defense lawyer is $250/hr and the average claim is $10,000 meaning your potential out-of-pocket costs could be thousands of dollars. These expenses have the potential to devastate your business financially. Because of this, you need insurance to operate your business from home with peace of mind. 

Coverage Details:

General Liability Aggregate Limit
Products-Completed Operations Aggregate Limit
Personal and Advertising Injury Limit
General Each Occurrence Limit
Damage to Premises Rented to You (Any One Premises)
Liability Deductible
Business Personal Property / Inland Marine Limit (Any One Article / Aggregate)
Business Personal Property / Inland Marine Limit (Per Occurrence) - Deductible

For food trailers, general liability limits only apply if you add a Trailer Endorsement to your policy. (Trailer Endorsement can be added during checkout).

**Please note that this is only a summary of your insurance coverage. All policies have specific terms, conditions, exclusions, and limitations. Please refer to the policy for a complete description of coverages. For a sample policy, please contact us at (844) 520-6992 or by email at

General Liability

A customer gets sick or has a reaction to your food. A customer damages your business property. General liability can protect your business from third-party bodily injury and property damage claims like these. 

Aggregate Limit: $2,000,000

Product Liability

Unfortunately, food poisoning is a natural hazard for any food business. Product liability insurance can help protect against the costs associated with food poisoning claims. Costs include medical expenses or attorney fees. 

Aggregate Limit: $2,000,000

Tools & Equipment Insurance (Inland Marine)

Tools & Equipment Insurance can cut the cost of repairing or replacing broken or stolen business equipment. Your cottage food law insurance policy offers two tools and equipment options: Coverage up to $5K per item or $10K per item. 

Aggregate Limit: $10,000

Damage To Premises Rented

If you rent a booth space at a farmers market then you run the risk of accidentally causing damage to that space. Damage to premises rented can help protect your business from the cost of repairing and damages done because of your business operations. 

Aggregate Limit: $300,000

Cyber Liability

When you store information online on a tablet, smartphone, or computer you are vulnerable to online security breaches and hacks. These cyber security attacks can be costly and dangerous. It is important to protect all aspects of your business.

Aggregate Limit: $100,000

FAQ's About Cottage Food Law Insurance

What Is A Cottage Food Business?

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 claims such as food poisoning or property damage.

What Are Cottage Food Laws?

Cottage food laws are the laws that allow bakers and business owners to make and sell food from their homes. Cottage food laws help businesses not worry about the restrictions of owning or working from a commercial kitchen. 

What Risks Does FLIP Protect Me From?

FLIP’s cottage food business insurance protects 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! 

Why Should I Choose FLIP For Cottage Food Law Insurance?

As a member, 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. 

Can I Include An Additional Insured With My Insurance For Cottage Food Business Policy?

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. 



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Annual Policies



$ 299