If you are a home baker, then sooner or later you are going to need to get Bakery Insurance. Bakery insurance is not just needed to cover the tools used on a daily basis, but the structure of your home based business as well. Bakery insurance comes in a variety of different packages and can be purchased at any number of local insurance agencies. Getting insured means that if you or one of your employees accidentally burns or injures themselves in an accident inside your bakery, you won’t have to worry about the financial loss you incur trying to replace the items.
Bakery insurance policies cover the equipment and supplies used by your bakery, but more than likely the first thing you will notice is that they don’t cover your customers. While it is common practice for an insurance company to not include coverage of what is used directly by customers, there are some exceptions to this rule is generally applied to. Bakery insurance policies are designed with your industry group in mind and to provide coverage of your storefront and the employees who work there. It is also common for most policies to cover establishments primarily engaged in the operation of baking, prep and delivery services. When you apply for a Bakery Insurance policy, be sure to include any of these services in the policy such as baked goods preparation, baking pans and utensils, equipment used for bakery cleaning, bakery display cases and bakery prep tables.
There are several factors that go into calculating a Bakery Insurance rate. One factor that insurance companies take into account when figuring out your premium price is the location of your business. If your business is located in a high-risk area, you are going to pay more for your Bakery Insurance policy than a business in a less risky area. Other factors that may affect your rate are the amount of business you conduct each year and the volume of goods you provide. Again, these factors are usually based upon where your bakery is located.
As previously mentioned, bakery insurance coverage protects your business against loss or damage to your equipment. Depending on the type of Bakery Insurance you purchase, it could provide coverage for your ovens, slicers, tumblers, fryers, freezers and other equipment found at most bakeries. Depending on which bakery insurance coverage you choose, it may also provide coverage for damage done to your property. Depending on the nature of your bakery, you may need to protect your building from fire or damage caused by a break-in. Bakery insurance coverage also protects your products from damage while being transported to and from the bakery.
Although some business owners feel that they don’t need Bakery Insurance because they only make once or twice per year and therefore do not require such coverage. That is not true. Today’s modern Bakery relies on a number of different technologies to help them produce quality baked goods and each type of technology has its own risk factors. In order to be certain that you are getting the best possible protection and value for your investment in your baking business, you should always talk with an insurance broker who is knowledgeable about the various types of baking business insurance policies available.
Bakery Insurance policies can be tailored to meet your specific needs. For instance, you may want to include coverage for damages or destruction to surfaces due to a spill, leak or fire outbreak. You may also want to include coverage for damages due to vandalism or theft. Because there are so many different aspects of your Bakery Insurance Policy, you should make sure that you get a complete analysis of the various policies that are available to you before purchasing the policy. A good bakery insurance policy should include the following types of coverage: