Bakery Insurance

Bakery Insurance is a type of Business Owners Policy (BOP), which combines general liability insurance and commercial property insurance in one convenient and cost-efficient policy. It’s designed to help bakery owners protect their business against the financial impact of many common risks they experience every day. In other words, you can focus on your sourdough starter without souring your credit score.

So what exactly does it include? Like sugar and yeast, Bakery Insurance combines two essential types of coverage:

General liability insurance

Protects you against the financial impact of claims of bodily injury, property damage, or personal and advertising injury from third parties. For example, say some coffee spills on the floor. Before you can mop it up, a hungry customer who is waiting in line slips and falls, sustaining an injury. If you are held liable for her injury, Bakery Insurance can pay for her medical expenses.

Commercial property insurance

Covers the building that you own and your business personal property. This means that the four walls of your bakery, your machinery and equipment, and the property that your business owns or leases are covered for direct physical loss. What might this entail? Imagine that your bakery items get too toasty and cause smoke damage. Bakery Insurance can help you with repairs. Or if someone steals your A-frame menu outside of your door, Bakery Insurance can help you buy a new one.

Business interruption insurance

Covers loss of business income due to direct physical loss or damage. If the aforementioned fire in your kitchen results in business closure, Bakery Insurance will pay your lost revenues and expenses while you’re closed — and even provide additional expenses to operate somewhere else while you wait for repairs.

Just as you offer sprinkles and other add-ons on your famous donuts, Bakery Insurance has some optional coverages that you can include in your policy:

Equipment breakdown coverage

Say that a power surge causes one of your ovens to short out. If you have equipment breakdown coverage on your policy, it could help cover the expense of getting a new oven.

Hired or non-owned auto

If you have an employee deliver cupcakes to a school, you’ll want to make sure you have this additional coverage in case they get into an accident. Hired or non-owned auto coverage applies to bodily injury and property damage from at-fault accidents due to the use of an auto owned by one of your employees or hired by your business.