Home Bakery Insurance
Running a bakery from home? Get comprehensive insurance coverage for your equipment, baked products, and more.
Benefits of Home Baking Insurance
Protect your business with comprehensive home-based bakery insurance from Food Liability Insurance Program (FLIP).
Customizable Coverage
Create a policy that gives your bakery the protection it deserves. From General Liability and Product Liability insurance to Tools and Equipment insurance, your business will have the coverage it needs.
Completely Online
Purchase your policy, apply additional insureds, view policy documents, and access your certificates of insurance, all online from your user dashboard.
Unlimited Additional Insureds
FLIP provides home-based bakers with free and unlimited additional insureds. You can add commercial kitchens, farmers markets, and more as additional insureds.
What Is Home Bakery Insurance?
Our insurance for home bakery businesses offers coverage where you need it most. General liability protects against third-party bodily injury and property damage claims. Product liability alleviates costs associated with foodborne illness claims, while tools and equipment insurance (Inland Marine) can cover damaged or stolen equipment.
Liability claims have the potential to financially devastate your business, which is why we offer different coverage limits and options so you can create a policy that will protect your unique business needs. Home bakery insurance can mitigate or even eliminate the out-of-pocket costs that claims often bring.
Do I Need Insurance to Sell Baked Goods From Home?
It depends on where you live. Cottage food laws determine if and what you can sell from your home, and these laws vary from state to state.
Investing in home baker insurance is a smart way to protect your small business, wherever you live.
How Much Does Insurance for Home Bakers Cost?
The cost of home bakery insurance starts at $25.92 per month or $299 per year.
Factors that can affect the price include:
- The state you do business in
- The gross income of your business
- The coverage limits you choose
- The coverages you include on the policy
What Risks Do Home Bakers Face?
While it’s exciting and rewarding to start a home bakery, you should be aware of potentially costly scenarios your small business could face. There are many risks involved in running a home-based bakery, such as:
- A customer getting food poisoning from a pastry you sold them
- An unlabeled allergen sending a customer to the emergency room after they ate one of your cookies
- Your kitchen flooding and damaging some of your equipment
- A guest tripping over a power cord and spraining their wrist while you were running a kitchen demonstration
These types of risks can all result in claims that lead to attorney fees, medical bills, and equipment repair or replacement costs. Without insurance, you could be held liable to pay thousands of dollars out of pocket.
Let’s Talk Number For 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.
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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
