Bakery Store Insurance Basics

There's nothing sweet about a massive lawsuit or extensive damage to property--these common business hazards could mean financial ruin for the bakery you have worked hard to start. Bakery insurance with adequate coverage for all situations can protect your bakery and your financial assets.

Bakery Insurance--What You Need
Bakery insurance is unique because it must cover circumstances and situations most other companies don't need to worry about; for example, your bakery store insurance will need to include property coverage for things such as equipment breakdown and resulting spoilage of food.

Business insurance for bakeries is also important. This type of insurance covers legal costs and settlements in the event your bakery is sued. If you have a car your use for deliveries, commercial auto insurance is a must as well.

Types of Bakery Insurance
Your business insurance for bakeries should include the following coverage:

  • General liability. This covers injuries or property damage that may occur in your bakery. For example, if a customer slips on a spill, injures her back, and sues you for the damages, general liability will cover medical costs and any additional judgments.
  • Product liability. Your bakery store insurance should also include a certain amount of product liability for damage from your products. Let's say you cater a business function and the entire staff gets food poisoning. Or, someone chokes to death on one of your products and the family sues you. Product liability will cover these things.
  • Workers compensation. This covers medical bills and lost wages for employees who are injured while on the job.
  • Business interruption. If a fire destroys your bakery, this type of insurance will pay for lost wages and profits while it is being repaired.

Property Insurance for Bakeries
Bakeries should have property insurance to protect their buildings and equipment from damage resulting from a fire, natural disaster, or equipment breakdown. Specific insurance you might need includes:

  • Building and contents. This covers your bakery itself as well as contents, including furnishing and decorations, counters, and so forth.
  • Equipment breakdown. If all of your ovens stop working or your expensive mixers malfunction, this insurance will cover repair or replacement costs for equipment.
  • Spoilage coverage. Let's say your refrigerators and freezers break down and you come to work one morning to find $15,000 worth of goods now ruined. Spoilage coverage will cover the costs.

Getting the Best Prices
Comparison shopping is a must when looking for the most affordable bakery insurance. makes this easier than ever. With netquote, you can research different coverages for your bakery, then compare them online for the best prices.

See how much you could save today on your insurance. Get your free business insurance quotes today!