Insurance for Bakeries & Pastries
Bakeries are wonderful businesses to own because they make people happy. Everyone loves the taste and smell of fresh bread or warm muffins, cakes and pastries. Bakeries involve a lot of hard work and upfront investment to get started. Don’t put your hard-earned business success at risk by skimping on small business insurance. Commercial insurance is an investment that helps protect your company from the high cost of lawsuits that can arise due to accidents, illness or natural disasters.
General liability insurance is a comprehensive package that helps protect your bakery against unforeseen events. It covers potential hazards and risks that are not specifically excluded in your business insurance policy.
General liability is extremely important for bakeries because you have so many customers going through your doors each day. If a customer injures themselves while on your premises, general liability will cover it. If a customer’s property is harmed in some way while they are at your business, general liability will cover that as well.
General liability protects your bakery if a customer is harmed or injured by the products you sell as well. It also covers you if previous services you provided are found to have harmed a customer in some way.
Business Owners Policy (Bop)
A business owners policy (BOP) is designed specifically for small businesses such as your bakery. It is a commercial insurance policy that offers combined coverage. It includes general liability, and adds property protection and intangible asset losses.
A BOP protects the buildings and structures of your business plus the contents inside. BOP protects you from financial losses caused by natural disasters that destroy your bakery building for example. It also protects the specialized baking tools and equipment you have inside.
BOP can protect you from the loss of income as well. If a fire destroys the income in your cash register, BOP will replace it. If you are unable to continue with standard business operations while waiting for your bakery to be repaired, the loss of that income is covered as well.
Many small bakeries compete for customers by offering special services such as delivery. If your bakery uses motor vehicles for any business purpose, they need to be covered by commercial auto insurance. Business auto insurance protects your company from the expense of repairing or replacing vehicles that are damaged in auto accidents. It also takes care of medical or hospital bills and related expenses when someone is injured in the auto accident. Business auto insurance can be expanded to include protection from losses due to theft, vandalism and non-accident impact events as well.
In the United States, you are required by law to cover your employees with workers comp insurance. This law applies whether you have one employee or hundreds. Workers comp coverage protects your employees from financial burdens that can be caused by work-related injuries. If your employee has an accident on the job, becomes injured or becomes ill, workers comp will cover them. Workers comp pays the employees medical, hospital or prescription expenses. It also provides for lost wages due to temporary or permanent disability. It provides the employee’s family with death benefits in the worst case scenarios.