Virtually every small business will benefit from the right insurance protection, but not every business is vulnerable in the same ways. Most businesses will need protection for their building, and for their employees, but what about the extras that come with a business involving a kitchen in the back? A bakery has some very specific needs and vulnerabilities that should be addressed in any policy they consider.
Covering the Basics
Covering all your basics is the first priority of an insurance policy. You have major investments, including your property, that have to be protected.
- Property Insurance
This will cover nearly any damage that could occur to your property, whether the building itself or the contents of the business. This can include anything from a fire to a break-in, plus everything in between. Coverage levels will vary, and can be adapted to your budget by raising or lowering your benefits and deductible.
- Liability Insurance
This protects you in case of an accident on your property, whether to a customer, employee or innocent bystander. Your finances shouldn’t have to suffer just because of a random fall; liability insurance helps protect you against the unexpected.
- Workers Compensation
This offers specific protection from employee-based liability. This is especially important in an environment such as a bakery, where there is a commercial kitchen with complex equipment and other potential hazards.
Since bakeries often take care of catering special events or delivering their goods off-site, special deliver insurance is a must. A commercial auto insurance policy can protect any business vehicle you have in your fleet, and can also extend extra protection to personal vehicles when used for business purposes on company time. A special policy called inland marine can also protect the delivery product itself, paying out benefits for product loss in case of an accident. When looking at the average price of wedding cakes these days, it’s pretty clear that there’s an end product that definitely needs some extra insurance coverage.
There are some special types of small business insurance that are especially good for bakeries, because they address many of the challenges that are common within the industry. For example, you can purchase protection against equipment breakdown or malfunction. When your entire inventory relies on your mixer, you just can’t afford to risk an emergency that leaves you with no product. The right insurance policy can help get you right back into business.
Spoilage coverage is another type of small business insurance that’s ideal for a bakery. Whether it’s food going bad, or refrigeration failure causing a loss, this type of benefit can protect your losses.
Baking Up a Storm
Just like any other business, running a bakery carries its own unique risks and rewards. Whether choosing basic small business coverage, or adding on policy extras that will address the specific concerns related to running a food-based business, there’s a policy that’s right for you.