What Type of Insurance Does a Bakery Need?

Owning and operating a bakery can be rewarding, but like any business, it comes with certain risks. From liability concerns to property damage, unexpected events can disrupt your operations and potentially lead to financial hardship. Insurance is crucial for protecting your bakery’s assets and mitigating potential losses. 


What Insurance Does a Bakery Need? 


When considering insurance for a bakery, several common types of coverage often come into play, including the following: 

• General liability insurance—General liability insurance can cover a wide range of potential risks, such as slip-and-fall accidents on your premises, customer injuries or damage to third-party property.

• Property Insurance—Property insurance can protect your bakery against damage to your physical assets, including your building, ovens, refrigerators and other equipment. This type of coverage protects your bakery financially after disasters such as fires, storms or vandalism. Property insurance can also include coverage for inventory, ensuring that your ingredients, finished products and equipment are protected.

• Business interruption insurance—Business interruption insurance is designed to help your bakery recover from financial losses if you must temporarily close due to unforeseen circumstances. It can cover lost income, ongoing expenses and additional costs incurred during the recovery process.

• Product liability insurance—If your bakery produces items that could cause harm or illness to consumers, product liability insurance is a must. This coverage can protect your business if a customer files a claim against your products. Even though you strive for high-quality and safe baked goods, accidents can happen, and this insurance helps mitigate the financial risks associated with product-related claims.

• Workers’ compensation insurance—Workers’ compensation insurance may be a legal requirement if your bakery employs staff. This coverage can provide financial support to employees who are injured or become ill on the job. It can also safeguard your business from costly lawsuits related to workplace injuries.

• Commercial auto insurance—If your bakery utilizes vehicles for deliveries or catering services, you’ll need commercial auto insurance. Personal auto insurance policies typically don’t cover accidents that occur while using vehicles for business purposes. Commercial auto insurance can protect your bakery in case of accidents or damage involving your delivery vehicles.

• Cyber liability insurance—Bakeries often rely on technology for operations, such as online orders and payment processing. Cyber liability insurance safeguards your business from data breaches, hacking or other cyberattacks that could compromise your customers’ sensitive information. It can cover costs related to notification, credit monitoring and legal expenses.

How Much Is Insurance for a Bakery? 


The following are some of the key factors that influence the cost of business insurance for a bakery: 

• Geographical location

• Size of bakery

• Type of bakery

• Annual revenue

• Claims history

• Coverage limits and deductibles

• Employee count and payroll

• Risk management practices

Business Insurance for a Bakery in Woodbridge, CT 


Contact Svendsen Insurance to discuss your bakery business insurance options. We will work with you on customer coverage, limits, endorsements and exclusions to fit your bakery’s risk exposures. 


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.