Bakery Insurance for Brick-and-Mortar Shops
Protect your bakery storefront from the financial impact of common risks with customizable bakery business insurance from Food Liability Insurance Program (FLIP).
Benefits of Bakery Insurance
FLIP offers protection built for the way you bake, so you can focus on your customers.
Meet Coverage Requirements
When local laws and landlords request proof of insurance, FLIP is there to make sure your coverage checks all the boxes. Plus, add unlimited additional insureds to your policy for free.
Enjoy a Financial Safety Net
Bakery insurance helps prevent an accident from becoming a financial burden by covering costs like property repairs, medical bills, and legal fees.
Build a Business People Trust
When you’re prepared for the worst, you show your customers, partners, and employees that you run a trustworthy, professional business.
What Is Bakery Business Insurance?
Bakery insurance is a type of restaurant insurance designed to protect your brick-and-mortar bakery from the biggest risks it faces. In most cases, it combines general liability, product liability, and commercial property insurance, but can be customized to fit your business’s exact needs.
Insurance for bakeries can cover claims like:
- Third-party bodily injuries (injuries your business activities cause to other people, not you or your employees)
- Property damage (to your own property or third-party property)
- Foodborne illness (or other claims from customers that your baked goods made them sick or injured them)
- Workplace incidents (such as harassment allegations, wrongful termination, or discrimination, as well as work-related injuries and illnesses)
These claims can be expensive. Insurance for bakeries helps protect you from paying out of pocket for these surprise costs, from first rise to final sale.
Running a baking business from home? Home-based baking insurance may be a better fit for you. Learn how FLIP can protect your business from the unique risks it faces.
What Kind of Insurance Does a Bakery Need?
Bakery insurance policies typically bundle liability and commercial property coverage. With FLIP, you can create a custom business insurance policy for your bakery that contains any of the following coverages, depending on your risks.
| Coverage | What It Covers | Example Claim |
| General liability | Injuries to other people and damage to other people’s property caused by your business | A customer trips and falls inside your bakery and sues to cover the medical bills from their injury |
| Product liability | Illnesses and injuries caused by your food products, such as food poisoning or allergic reactions | A customer sues you after they had an allergic reaction to one of your pastries, and sues you because it wasn’t labeled clearly |
| Personal and advertising injury | Legal expenses if someone accuses your business of causing financial harm with your advertising | You accidentally use a photo from another bakery’s website in your marketing, and they sue you for copyright infringement |
| Damage to premises rented to you | Limited property damage coverage for a space you rent | An oven fire damages the walls and ventilation system in your rented space, and your landlord holds you responsible for repairs |
| Commercial property | Damages to your building (if you own it) and its contents (e.g., inventory, equipment, and furniture) | A break-in results in stolen cash, damaged display cases, and a destroyed point of sale (POS) system |
| Employment Practices Liability Insurance (EPLI) | Legal expenses if an employee accuses you of unfair employment practices (e.g., discrimination, wrongful termination, and harassment) | A former employee sues you for wrongful termination, claiming they were fired without just cause |
| Workers compensation | State-mandated benefits for employees who develop a work-related injury or illness | One of your employees burns their arm while removing trays from the oven and needs medical treatment |
| Business income interruption | Lost income and operating expenses if you’re forced to close your business because of a covered incident | A fire forces your bakery to close for two weeks, and you lose income from repairs while still covering rent and expenses |
| Cyber liability | Financial losses (first- and third-party) caused by a cyberattack (e.g., data breach, ransomware, and phishing) | Hackers gain access to your online ordering system, exposing customer payment information |
| Equipment breakdown | Repairs or replacements for damaged business equipment due to electrical, mechanical, or operator errors | Your commercial oven breaks down due to a mechanical issue, stopping production and requiring expensive repairs |
| Tools and equipment (inland marine) | Repairs or replacements for stolen or damaged mobile business gear if it’s damaged in transit or stored at a temporary location | On the way to an event, your baking equipment and supplies are damaged during transit and need to be replaced |
How Much Does Bakery Liability Insurance Cost?
On average, bakery insurance costs $2,500 a year for FLIP customers, with 78% paying less than $3,000 annually.
Your premium may be lower or higher depending on the following factors:
- Your gross annual revenue
- Your location
- Your payroll
- The services you offer
- Your claims history
- Whether you rent or own your location
What Customers Say About FLIP
Here's what other people have to say about their experience from 300+ available reviews.
Bakery Shop Insurance Coverage Details
General Liability Aggregate Limit
Starts at $2,000,000
Products-Completed Operations Aggregate Limit
Starts at $2,000,000
Personal and Advertising Injury Limit
Starts at $1,000,000
General Each Occurrence Limit
Starts at $1,000,000
Damage to Premises Rented to You Limit
Starts at $50,000
Liquor Liability Occurrence & Aggregate Limit
Starts at $1,000,000
FAQs About Insurance for Bakeries
How Do Risks for Storefront Bakeries Differ From Home-Based Bakeries?
Storefront bakeries are often more exposed to risks like customer injuries, commercial property damage, and workplace incidents because they serve customers on-site and typically employ staff. Home-based bakeries tend to have fewer in-person risks, but they face gaps in coverage because homeowners insurance doesn’t normally cover business-related claims.
Regardless, both types of businesses need insurance to shield against product-related risks like foodborne illness and unlabeled allergens.
Is Bakery Insurance Required by Law or Landlords?
In many cases, yes. You may be required by law to carry business insurance for your bakery before you can apply for certain licenses. Additionally, if you rent your storefront, it’s highly likely your landlord will require proof of insurance before signing your lease agreement.
How Quickly Can I Get Proof of Insurance for My Bakery?
You can access your Certificate of Insurance (COI) as soon as you purchase your policy. It will be available to download 24/7 from your user dashboard.
Can I Customize My Insurance As My Bakery Grows?
Yes! FLIP is here for you as your business grows, whether you need higher coverage limits or need to add more coverage to protect against new risks. We recommend reassessing your insurance needs annually when it’s time to renew your policy, and working with your agent to update your coverage.
How Do I Get Insurance for My Bakery?
Insure your bakery with FLIP by following these steps:
- Start your application
- Enter essential information about your business and submit your application
- A licensed agent will be in touch with you shortly to review your quote and help you purchase your custom policy