Your passion in life is making sweet treats for strangers. Seeing their faces light up when they bite into a soft cookie or a gooey cinnamon roll is reward enough; years of honing your craft have paid off. Now you have your very own bakery shop to sell your goods. You’re living the dream!
But any baking operation worth its salt needs bakery business insurance to protect its finances in case of an unforeseen disaster. It’s truly the cherry on top of any solid business plan.
Still not convinced? Here are four scenarios that illustrate the reasons why bakeries need business insurance.
A customer slips on your wet floor and falls
It’s first thing in the morning. As usual, you’re running around trying to get your shop ready for customers. You hardly notice when the first person walks through the door—until you hear them fall. Whether a rainy day is the culprit or your employee just mopped the entryway, a customer injury on your premises could cost you hundreds or thousands of dollars.
A standard commercial general liability insurance policy protects businesses “against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products and completed operations.” Whew.
A batch of desserts gives customers food poisoning
As a baker, you dread even hearing the phrase “food poisoning.” But it happens. A few years ago, DeFusco’s Bakery in Rhode Island had to close its two locations after two people died and over 75 others showed symptoms of food poisoning after consuming zeppole (cream-filled, sugary pastries), as the Boston Globe reported. The culprit was most likely salmonella-infected eggs.
One food poisoning outbreak can rack up legal bills so high it shuts down your business for good, unless you have liability insurance to offset these legal costs and help mitigate the damage.
A bakery van is involved in an accident en route to an event
Oftentimes, food festivals and special events make up a bulk of your advertising and yearly sales. To get there, you need wheels.
Your commercial vehicle gets you around town. But what if it’s taken out of commission by an accident? Worse yet, what if you’re found “at fault” for the accident and have to pay for the other driver’s vehicle damages and medical bills? Commercial auto insurance will be your friend here; it protects the very mobility of your business.
You can’t finish a huge job in time due to various setbacks
It’s a comedy of errors: First all the stores in your city run out of a certain specialty ingredient, then the person who ordered your baked goods (perhaps for a wedding or baby shower) waffles on what they actually want. Your oven breaks, your van is in the shop and you simply can’t hit the original deadline that you set in your contract. You may be able to work something out with the customer (free coffee and muffins for life, anyone?), or they may take you to court alleging that you didn’t uphold your promised services and ruined their big day.
Professional liability insurance is a must have, as it covers professional “negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice,” per the Insurance Information Institute.
Now you see how important bakery business insurance is to keeping your company afloat. There’s nothing sweeter than confidence and peace of mind when it comes to food service.
Want to check out your options? Get a quote from the experts at CoverHound today.