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How Much is Insurance for a Bakery? Factors That Influence the Price

By Maria Hickey on September 27th, 2023

If you’re considering opening a bakery, one of the key things you’ll need to budget for is insurance. Bakery insurance can cover your business against risks like property damage, liability claims, and loss of income.

But how much does bakery insurance cost on average? The price can vary quite a bit based on a number of important factors.

Average Cost of Bakery Insurance

The average cost of insurance for a small to mid-sized bakery in the UK is around £2,000 per year, but premiums can be higher or lower depending on your specific risks. 

Key Factors That Influence Bakery Insurance Costs

There are several variables that affect your bakery insurance premiums, including:

  • Location – Insurance rates are usually higher in areas with more crime, natural disasters, lawsuits, and claims. Urban areas tend to have higher premiums.
  • Business Size – Larger bakeries with multiple locations, more employees, and higher sales will pay more for coverage. Small home bakeries can usually find more affordable plans.
  • Years in Business – Newer bakeries are seen as higher risk and will have higher premiums. After being in business for several years with a solid claims history, rates often decrease.
  • Coverage Limits – The higher the limits you choose for property damage, liability, and other coverages, the more your insurance will cost. Lower limits can reduce premiums.
  • Deductibles – Choosing a higher deductible, which is the amount you pay out-of-pocket on a claim before insurance kicks in, can also lower your premiums. 
  • Value of Property – Insuring high-end equipment, fixtures, inventory, and property will increase insurance costs.
  • Claims History – Frequent past claims for losses will drive your premiums up. A clean claims history will help lower costs.

Key Types of Bakery Insurance Coverage

While premiums vary, most bakeries need core insurance coverages like:

  • Public Liability Insurance – This covers you if a third party (like a customer or someone who was invited into your bakery) is injured, their property damaged, or they sue you for negligence.
  • Property Insurance – Protects your premises and equipment from perils like fire, storms, theft, and vandalism. Small bakeries may pay £200 – £500 annually.
  • Commercial Auto Insurance – For bakery-owned vehicles, costs range from £300 – £1500 annually depending on the number and types of vehicles.
  • Product Liability Insurance – For food products manufactured and sold. Premiums range from £300 – £1000 annually.
  • Business Interruption – Optional coverage to replace lost income if your bakery must temporarily close due to a covered event.

Protect Your Business with Brisco Bakery Insurance

With a well-crafted policy, you can protect your business from common risks and get peace of mind in knowing that your bakery is insured. 

Here at Brisco Business, we offer tailored bakery insurance policies to fit your precise needs and budget. Our experienced agents will walk you through the process, helping to customise your policy and find potential savings. Get a quote today to start protecting your bakery and enjoy the peace of mind that comes from knowing you have reliable

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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