Home Bakery Insurance
Get affordable coverage that meets legal and vendor requirements from Food Liability Insurance Program (FLIP).
Benefits of Home Baking Insurance
FLIP’s coverage doesn’t cut corners on benefits for you and your home bakery.
Insurance That Checks Every Box
Meet legal requirements and land more vending opportunities at markets and festivals with FLIP’s comprehensive coverage.
Coverage Made to Order
No two home bakeries are exactly alike, so why should your insurance be? FLIP makes it easy to customize your coverage with optional add-ons to protect your equipment.
Covered From Kitchen to Market
Selling at festivals or farmers markets? FLIP covers your business and your products at home and away so you can always sell with confidence.
What Is Home Bakery Insurance?
Insurance for home bakers is a type of bakers insurance designed for business owners who make and sell baked goods from their home instead of a traditional brick-and-mortar retail location. You may also hear this coverage referred to as cottage food insurance.
It combines essential coverages designed to shield your business from common claims, including:
- Product liability (bodily injuries or property damage caused by your products)
- Third-party bodily injury (bodily injuries to others caused by your business activities)
- Third-party property damage (damage to others’ property caused by your business activities)
- Personal and advertising injury (damage to someone’s finances or reputation caused by the way you promote your business)
These are just a few examples of things you can be held financially responsible for. Claims like these can cost thousands of dollars, which can hurt if you’re paying out of pocket.
With FLIP’s home bakery insurance, you get the peace of mind that only comes with a financial security net. It can help cover claim expenses so you don’t have to, including:
- Medical bills
- Replacements/repairs to damaged property
- Legal expenses if you need to defend yourself against a claim
Who Needs Home-Based Bakery Insurance?
Businesses that need home bakery insurance include (but aren’t limited to) the following professionals running their business primarily from home.
- Baked goods vendors
- Bake sale vendors
- Cake makers
- Cottage food bakers
- Custom order bakers
- Micro bakeries
- Pet food/treat bakers
- Wholesale vakers
Is Home Bakery Insurance Legally Required?
Depending on where you live, your state may have cottage food laws that regulate all home-based food businesses. These laws may require you to carry general liability insurance for your home bakery, so you’re financially prepared if an accident happens.
Or, cottage food laws may require you to rent a licensed commercial kitchen space to do all of your baking. It’s likely you’ll be asked to present proof of insurance by the kitchen owner before they accept your application.
Even if business insurance for home bakers isn’t required where you live, that doesn’t mean you don’t need it. Most businesses cannot handle thousands of dollars in surprise expenses, which could happen if your business doesn’t have coverage. If things get sticky, baking insurance has your back.
What Types of Insurance Do Home Bakers Need?
FLIP’s home-based bakery insurance includes basic coverages all home bakers need, but your business may need more depending on what risks it faces. Review the different types of home-based business insurance below and which claims they can cover to learn what’s best for your business.
| Type of Insurance | What It Covers | Example Claim | Included in FLIP’s Home Bakery Insurance Policy? |
|---|---|---|---|
|
Bodily injuries to other people and damage to their property caused by your baking business |
A gust of wind blows your canopy into a nearby parked car while you’re selling baked goods at a farmers market |
✅ |
|
|
Other people’s bodily injuries and property damage caused by your baked goods |
A customer claims your cookies caused an allergic reaction because they had undeclared peanuts |
✅ |
|
|
Other people/businesses claiming you caused them financial or reputational harm when promoting your business |
A competitor says your Instagram post falsely claims you’re the only licensed home bakery in town, which has damaged their reputation |
✅ |
|
|
Claims relating to both your baked goods and any services you provide |
After delivering a wedding cake to a client, it collapses at the reception before anyone can eat it |
✅ |
|
|
Limited property damage coverage for a space you rent |
You rent a commercial kitchen space and accidentally start a fire that damages the oven hood system |
✅ |
|
|
Damages done to/caused by a vehicle you use for work purposes |
You rear-end another vehicle with your work van while delivering a custom cake to a venue |
✖️ (optional) |
|
|
First- and third-party expenses after your business suffers a cyberattack (e.g., data breach, phishing, etc.) |
A hacker steals customer payment information from your online ordering system |
✖️ (optional) |
|
|
Damages to other people caused by your professional advice |
You teach a baking workshop on the side, and a client sues you after they burn themselves during the class |
✖️ (optional) |
|
|
Replacing/repairing damaged or stolen mobile business equipment |
Your mixer and display cases are stolen from your booth during a weekend festival |
✖️ (optional) |
|
|
State-mandated benefits for employees if they become injured or sick on the job |
Your employee strains their back while lifting bags of flour and needs significant time off from work to recover |
✖️ (optional) |
How Much Does Home Bakery Insurance Cost?
FLIP’s business insurance for home bakers starts at just $25.92 a month or $299 a year. This policy includes the following essential coverages:
- General liability
- Product liability
- Damages to premises rented
- Products-completed operations
- Personal and advertising injury
Some of the factors that can affect the cost of your coverage include:
- The state you do business in
- Your business’ gross annual income
- The coverage limits you need
- The add-on coverages you include on your policy
- If you have a history of filing expensive claims
FLIP: The Best Home-Based Bakery Insurance
Home Bakery Liability Insurance Coverage Details
General Liability
Aggregate Limit: $2,000,000
Personal bakers take on a lot of unique risks, which is why it’s so important to carry liability insurance. FLIP can help protect your business from costly claims like third-party bodily injury, property damage, products-completed operations, and more.
Product Liability
Aggregate Limit: $2,000,000
When you operate a home baking business, your product is the star. Unfortunately, selling food opens you up to risks like foodborne illnesses and unlabelled allergens. FLIP’s product liability coverage can help cover these out-of-pocket expenses that might arise.
Inland Marine (Tools and Equipment)
Aggregate Limit: $10,000
Your home bakery equipment is essential to your business. If your tools are damaged or stolen, tools and equipment coverage can mitigate or eliminate the costs.
Damage to Premises Rented
Aggregate Limit: $300,000
If you rent a space to bake or sell your goods, you’ll need insurance to stay protected. Many event planners and property owners require renters to carry liability insurance and to list them as additional insureds on the policy. FLIP offers unlimited additional insureds at no extra cost.
Why Home Bakers Choose FLIP
Here’s what other people have to say about their experience from 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 Home Bakery Insurance
Does Homeowners Insurance Cover Home-Based Baking?
In many cases, homeowners insurance will not cover claims related to your home-based baking business. It’s designed to cover personal activities, not commercial operations.
You may be able to modify your policy with an endorsement that extends some coverage to your home bakery. However, it’s generally recommended to purchase separate liability and property insurance for any business activities.
Can I Turn My House Into a Bakery?
Depending on your state’s cottage food laws, yes! If your state allows you to sell homemade baked goods for public consumption, you can make your home the base of your operations. You may need to pass a home health inspection before you can legally start selling.
However, some states require you to rent a commercial kitchen or commissary location for food prep and storage purposes because of the concern for public health and safety. Make sure you research your state’s cottage food laws to see if this applies to your business.
What Is Cottage Food Insurance?
Cottage food insurance is another name for home-based food business insurance. It gets its name from cottage food laws, which are rules passed by your state to regulate home-based food and beverage businesses.