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Baking with Peace of Mind: The Importance of Proper Bakery Insurance

By Maria Hickey on November 8th, 2023

For bakers and cake decorators, opening a bakery represents the ultimate dream. After perfecting your recipes and business plan, the next step is securing the right bakery insurance to protect your venture. With the proper coverage, you can avoid potential risks that could sink your business.

From fire risks to employee injuries, your bakery has unique exposures that require tailored coverage. Attempting to cut corners with inadequate insurance could put your livelihood at risk if something goes wrong.

When shopping for bakery insurance, it’s essential to partner with an experienced provider that offers comprehensive policies tailored for your industry. This specialised protection allows you to run your bakery with full peace of mind. Keep reading to learn why proper insurance is so critical for bakery owners.

Protection Against Core Bakery Risks

Operating a bakery brings a host of risks and exposures that require tailored commercial insurance coverage. Some key policies needed include:

Property insurance

This covers damage to your business location, buildings, and equipment from causes like fire, wind, vandalism, theft, and water damage. Bakeries have high property risks with expensive ovens, mixers, display cases, and other equipment that can easily be damaged.

As a result, having  adequate coverage to repair or replace damaged items is crucial.

Business interruption

If a fire, accident, or other problem forces you to temporarily close your bakery, this coverage replaces lost income until you can reopen. Business interruption insurance covers operating expenses, payroll, and other ongoing costs so you can resume operations after repairs. For a new bakery, it protects against potential bankruptcy from closure.

Public liability

This vital coverage protects your bakery from customer injury lawsuits if someone slips or falls on your premises. It covers legal defence costs and settlement payouts. The policy also protects against food contamination and spoilage claims if a customer gets ill from eating your products.

Commercial motor

This protects against claims if your bakery vehicles are involved in an accident while delivering products or transporting ingredients/supplies. It covers injuries to other drivers and damage to their vehicles if your driver is at fault. This is required if company vehicles are used.

Employers liability

This mandatory coverage pays for medical treatment and lost wages if employees are injured on the job, such as burns or slip/falls. It protects workers and eliminates their need to sue for damages. Premium costs are based on payroll size and injury history.

Products liability

This added protection covers you if a customer is injured or gets sick from consuming your bakery products, like an allergic reaction. It covers medical costs and defends against lawsuits that allege your food caused harm. It provides an added layer of protection beyond general liability.

Equipment breakdown

This covers repairs or full replacement if ovens, mixers, or other commercial bakery equipment breaks down or stops functioning. Preventing business disruptions from equipment failure is essential.

Managing Financial Pressures

In addition to liability dangers, bakery insurance also helps manage financial risks and pressures. The starting costs for a bakery are quite high, including ovens, mixers, display cases, ingredients and more.

If disaster strikes, you don’t want to lose your entire investment. The right insurance covers equipment replacement and income loss, preventing you from going out of business or filing bankruptcy due to an uninsured loss.

Gaining Business Credibility

Beyond financial protection, proper insurance also lends credibility for a new bakery. Banks are more likely to approve loans when adequate coverage is in place. Landlords may require certain liability limits before signing a lease agreement as well.

Insurance shows vendors, partners and customers that you operate a professional and stable business. This provides confidence to work with you for the long term.

Bakery Insurance from Brisco Business

Not all insurers are created equal when it comes to bakery coverage. For this reason, it’s essential to choose an established company with deep experience covering food businesses.

At Brisco Business, our bakery insurance gives you the specialised protection needed to fulfil your business dreams. We make the process easy and efficient while ensuring you have coverage for potential liabilities and dangers.

Contact our experts today for a free quote to keep your bakery safe while baking with peace of mind!

Maria Hickey

For more than 20 years, Maria has worked in the insurance sector and has extensive underwriting and customer service expertise. Maria is an experienced Senior Underwriter with a particular specialism for shop, office and surgery related insurance.

All articles by Maria Hickey

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