Cottage Food Insurance
Protect your home-based food business with affordable cottage food insurance from Food Liability Insurance Program (FLIP). Enjoy instant proof of coverage and liability protection your homeowners policy likely doesn’t offer.
Benefits of Cottage Food Business Insurance
Insuring your cottage food business with FLIP comes with benefits you don’t want to miss.
Instant COI & Free Additional Insureds
Get immediate access to your Certificate of Insurance (COI) after purchase and add unlimited additional insureds during or after checkout at no extra cost.
Meet Coverage Requirements With Ease
Whether your cottage food laws mandate business insurance or a farmers market wants proof of coverage, FLIP’s policy meets or exceeds most requirements.
Affordable, Customizable Coverage
We keep prices low with a policy catered to cottage food businesses without any fluff. Add other coverages as needed for equipment coverage, data breach protection, and more.
What Is Cottage Food Law Insurance?
Cottage food insurance is coverage for home-based food businesses designed to cover third-party injuries or property damage, and is necessary to protect your business and meet legal or venue requirements.
It gets its name from cottage food laws, which regulate the sale of homemade foods and beverages in each state. You might also know it as home food business insurance.
Just like with any business, there is always a chance that your products or operations can hurt someone physically or damage their property. Cottage food business insurance may cover the resulting costs you’re held responsible for, like:
- Medical bills
- Repairs/replacements to damaged property
- Legal expenses if you need to defend yourself against a claim
How Much Does Cottage Food Insurance Cost?
FLIP’s cottage food business insurance starts at just $25.92 a month, or $299 a year. That’s usually less than the cost of one farmers market booth fee each month!
The final amount of your premium depends on a few factors, including:
- Your business’ gross annual revenue
- Your location
- If you include add-on coverages, such as tools and equipment insurance
- If you have a history of filing expensive claims
Who Needs Cottage Food Law Insurance?
If you’re running a food or beverage business primarily from your home, you need cottage food insurance. This includes (but isn’t limited to) the following types of home-based businesses.
- Bake sale vendors
- Cake makers
- Custom order bakers
- Home-based bakeries
- Home-based food vendors
- Micro bakeries
- Pet food/treat bakers
- Wholesale bakers
Homeowners Insurance vs. Cottage Food Business Insurance
Most homeowners policies specifically exclude business activities from coverage. That means if you have any type of liability or property damage claim caused by your business, your homeowners policy won’t cover it.
Some insurance companies offer riders or endorsements for homeowners policies (documents that extend your coverage) to provide limited protection for home-based business activities and equipment. In general, it’s recommended to have separate liability and property coverage for your business because you may need higher limits and broader coverage than a homeowners endorsement can provide.
| Homeowners Insurance | FLIP Cottage Food Insurance | |
|---|---|---|
|
Who It’s For |
Personal home and property protection |
Home-based food businesses |
|
Covers |
Home and personal liability |
Product and business liability |
|
Business-Related Claims? |
Usually excluded |
Specifically designed to cover |
|
Meets Venue Requirements? |
No |
No |
What Types of Insurance Do Cottage Food Businesses Need?
All cottage food businesses need basic coverages to help safeguard against the most common liability claims. However, many businesses need more than the basics to provide a solid financial safety net.
Review the different types of insurance for cottage food businesses and what risks they cover to decide which ones are right for your business.
| Type of Insurance | What It Covers | Example Claim | Included in FLIP’s Cottage Food Insurance Policy? |
|---|---|---|---|
|
Bodily injuries to others or damage to their property caused by your business |
The canopy over your booth at the farmers market collapses into a nearby parked car |
✅ |
|
|
Claims of illness or injury from other people caused by the food products you sell |
A customer claims your homemade banana bread made them sick |
✅ |
|
|
Claims involving libel, slander, copyright infringement, or misleading advertising |
A photographer claims you used pictures they took in an advertisement without permission |
✅ |
|
|
Claims relating to your products or services |
A customer claims your meal kit contained an unlabeled allergen that caused them to have a severe reaction |
✅
|
|
|
Property damage to a venue or space you rent temporarily for your business |
You accidentally burn the countertop at a community center while using a portable heating unit at an event
|
✅
|
|
|
Claims involving a vehicle you use for business deliveries or transportation |
You rear-end another vehicle while delivering an order of cupcakes to a wedding venue
|
✖️
(optional)
|
|
|
Expenses stemming from data breaches, hacking, or stolen customer payment info |
A hacker steals customer credit card details from your online ordering platform
|
✖️
(optional)
|
|
|
Claims related to any professional advice or services you provide |
A client claims your allergen labeling guidance cost them thousands in regulatory fees after they took your cottage food labeling course
|
✖️
(optional)
|
|
|
Coverage for movable business equipment |
Someone steals your stand mixer from your farmers market booth
|
✖️
(optional)
|
|
|
Benefits for employees who become sick or injured on the job as mandated by your state |
An employee burns their hand while taking a batch of cookies out of the oven and needs medical attention |
✖️
(optional)
|
FLIP: The Best Cottage Food Business Insurance
Cottage Food Insurance Coverage Details
General Liability
Aggregate Limit: $2,000,000
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: $2,000,000
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: $100,000
Cyber liability insurance helps your business recover from cyber attacks, such as 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: $300,000
Damage to premises rented can help protect your business from the cost of repairs for damages done to the space you rent for your business, such as a commercial kitchen or commissary. These damages could include an accidental fire started in the kitchen space you rent, or scuff marks on the floor of a farmers market venue left by your booth.
Why Cottage Food Businesses Choose FLIP
Here’s what other people have to say about their experience from over 300+ available reviews.
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
Inland Marine Limit (Any One Article / Aggregate)
$5,000/$10,000
Inland Marine Limit (Per Occurrence) – Deductible
$250
Medical Expense Limit
$5,000
FAQs About Cottage Food Law Insurance
Do I Legally Need Insurance for My Cottage Food Business?
Your state’s cottage food laws may not legally require insurance for home-based businesses. However, if you want to sell at events, markets, or venues, insurance is often required.
All cottage food businesses face risks that could result in surprise expenses for you, from customer injuries to damaged property. Insurance is designed to cover some (or all) of these costs so you don’t have to pay out of pocket.
Can I Get a One-Day Policy?
FLIP does not offer a one-day or event policy for cottage food businesses. However, if you run your business year-round (even if you aren’t attending markets or events the whole time), an annual policy is most likely the best fit for you.
Let’s face it: claims like food poisoning or unlabeled allergens aren’t just limited to market days. Plus, many claims aren’t reported until days or weeks after they happen. Our annual policy provides 365 days of protection, so your business isn’t vulnerable to risky coverage gaps.
How Can I Get My COI?
After buying your policy, you’ll be able to access and download a copy of your COI 24/7 via your online dashboard.
How Do I Add Additional Insureds to My Policy?
There are two ways to add additional insureds to your FLIP policy:
- During checkout: While filling out your application, you will be asked if you want to add any additional insureds today.
- Any time after checkout: Simply log in to your account and add additional insureds for free.