The Essential Guide to Insuring Your Home-Based Baking Business

For aspiring bakers looking to turn their passion into a profitable business, setting up a home-based bakery can be an ideal way to get started. However, before you begin selling your delicious cakes, cookies, and pastries, it’s crucial to make sure your business is properly insured. 

Having the right bakery insurance coverage helps secure your home baking business against a range of risks – from potential customer injuries to unforeseen equipment damage.

Understanding Home Business Regulations 

When running any food business from home, there are certain government guidelines and regulations around food safety and hygiene that must be followed. Ensure you check the specific requirements for home-based food businesses in your local area.

Typically, regulations will cover suitable preparation areas, storage conditions, waste disposal arrangements, and training certificates. Making sure your home baking setup meets the necessary standards will show customers your dedication to producing quality, safe products.

Insurance for Home-Based Baking Businesses

There are a range of insurance policies available to home-based baking businesses, including:

Public Liability Insurance

One of the most vital insurance policies for a home bakery is public liability cover. This protects you if a customer ever makes a claim against your business for personal injury or property damage. For example, if someone choked on an item you baked or slipped in your home workspace.

Product Liability Insurance

Product liability insurance is also key, to cover you in case a customer gets ill or injured from consuming one of your products. These policies provide protection if you ever face legal action or compensation claims – giving you invaluable peace of mind.

Business Interruption Cover

Business interruption insurance covers loss of potential earnings if your operations are disrupted. This could be from damage to your home workspace from events like fires or floods, or from power cuts preventing you from baking. 

Motor Insurance for Deliveries

If you plan to use your own car for delivering bakery orders or mobile catering, notify your insurer. Standard motor insurance may not cover business use, so upgrading to a suitable policy is important.

Also check you have adequate coverage for transporting business stock like ingredients or baked goods. Delivery drivers insurance tailored for food businesses can provide protection.

Employers’ Liability Insurance

If you ever expand your home baking operations and take on employees, employers’ liability insurance becomes legally required. This covers compensation costs if any staff member was injured or became ill through their work. 

Even hiring one part-time baking assistant requires this policy, for full compliance and protection.

Home Insurance Considerations 

Speak to your home insurer before starting baking activities from your residential property, as standard home insurance policies may not cover commercial use. You may need to upgrade to specialised home-based business insurance to ensure adequate protection.

Key risks to consider are damage to fixtures or fittings from baking splatters and spills, or oven fires. Also look for coverage options such as business stock and equipment insurance, to protect your ingredients, appliances and tools used for your bakery.

Get Home Bakery Insurance With Brisco 

Taking steps to properly insure your home baking venture gives you the security and confidence to turn your passion into a successful business. 

At Brisco, we offer tailored bakery insurance solutions for home-based bakeries. We provide a range of coverage options, including public liability, product liability insurance and stock/equipment cover. 

Contact us today to find out more about how we can tailor a home bakery insurance policy that suits your start-up or to get a quote.

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