There's no doubt that baking is a business that allows you to see smiles on your customers' faces. Whether it's seeing a child's face light up with excitement when they see their birthday cake, a worker's optimistic smirk as they prepare to surprise their colleagues with a box of donuts for a meeting, or you see the crow's feet on the face of a regular customer as they purchase a special dessert for their family like they do every weekend. There's no doubt that you can see the tangible benefits of the goods you and your employees bake.
However, there is an inherent risk that comes with the job. As with anyone who makes, handles and distributes food, there are plenty of common risks. It's possible something is wrong with the dough, and you don't find out about the recall until after you've incorporated it into your cooking. One of your creations could get cross-contaminated with some nuts, causing one of your customers to have a significant allergic reaction. A vulnerable customer could also get injured by suffering a slip and fall on your premises. You might face legal backlash that could end in financial hardship in these situations and many others. If any of these happen, you're in danger of suffering a heavy financial loss if you don't have bakery insurance ready to cover you and your business.
Bakery Insurance is a form of business insurance that protects bakeries against many legal claims and other expenses that could do severe damage to your finances. Any business owner faces many risks due to the large number of things that could go wrong, even if you do every reasonable thing to protect yourself.. A display piece may be held out, and an excited child runs into it, suffering a bodily injury. Also, as with any business with a physical location, you face the possibility of theft and property damage from people who see you as a valuable mark, or even those who target you at random.
In any of these cases and many more, a bakery insurance policy helps protect against financial losses you could experience in many situations. The right coverage could end up saving your bakery business from disaster.
Bakery Insurance is recommended for every type of bakery in Ontario. Whether you run a small donut shop, bagel shop, cupcake shop, a bakery specializing in a small niche, or a full pastry shop selling a wide variety of baked goods, all bakery owners could use the protection of bakery insurance. A bakery insurance policy is designed to protect you from the financial damages and risks involved in owning a business, especially the ones dealing with food safety.
Depending on the type of policy you choose, bakery insurance can cover business owners from a wide variety of legal costs, coverage for damage to your property or bakery equipment, and the costs of customer injury that you would normally have to reimburse someone for. It can also cover you in the case of a lawsuit for an event like an allergic reaction, slip and fall, or other injury where someone holds you responsible for causing them harm.
There are several different types of bakery insurance coverage, allowing each baking business to determine which coverage works best for their business. Please also note that this list is incomplete, and there are more options that may be suitable for your particular needs. You may like assistance determining which types of insurance are best for your business. In that case, the brokers here at Morison Insurance will do everything within their power to ensure that you get a bakery insurance quote that best suits the needs of your business.
Commercial general liability coverage ensures your bakery is financially protected from lawsuits and court-related costs, as detailed in the policy outline. The most common claims include slip and falls, damage or replacement costs to a customer's personal belongings, and personal injuries caused by your equipment.
Let's say that when a senior looks at your inventory, they slip on a wet spot from when you mopped, hurting themselves. Maybe you accidentally dropped a donut covered in frosting and powder onto an expensive article of clothing a customer is wearing, creating a stain that doesn't wash out, and they decide to go after you. What if a customer steps on broken glass and gets cut? In these cases, commercial general liability insurance is designed to protect you and your bakery shop from the financial risks involved in having other people come onto your property. This includes the cost of defending yourself in court from the accuser and covering the cost of claims up to the policy limit.
Product liability insurance covers you in the case of one of your baked goods or other products causing harm to someone who used or consumed it. Let's say that one of your customers buys cookies from you to give to their kids. If the product got contaminated with trace amounts of nuts from another recipe, and one of their kids has an allergic reaction, you could be sued if your product label didn't warn the customer about this possibility. A similar instance could apply if you are accused of causing a condition such as food poisoning or another illness to a customer. Given the many ways this could happen, whether or not you are at fault, protecting yourself against this type of situation is essential, so it's critical that you include this in your bakery insurance plan.
Commercial property insurance helps protect any business that has a physical location. This is especially important, as most risk factors are out of your control. While you may do everything possible to prevent an event such as a fire in your building, a fire could start on your neighbour's property during off hours and spread onto your property. What if vandals target your property at random at night, causing physical damage to the outside of your building? What if a robber thinks that your business is the target for their next smash-and-grab? In these cases, you would likely be stuck paying out of pocket to restore your business property.
If, on the other hand, your bakers insurance plan includes commercial property insurance, you would be protected up to the coverage limits in situations such as these.
Unsurprisingly, running a bakery involves baking. This means using expensive equipment, such as ovens and storage that's often refrigerated. You will likely require many of these devices, and given both their cost and importance, one of these breaking down can be crippling to your finances.
However, with equipment breakdown insurance, you can have peace of mind that even if one of your massively important machines breaks down, you can be reimbursed for the cost of replacing one, up to the policy limit. Please note, however, that equipment breakdown insurance doesn't cover situations in which the insured's poor maintenance of the equipment is responsible for the breakdown or general wear and tear combined from natural use and time. It only covers the accidental breakdown where the insured is not at fault for the damage done.
There's plenty of reasons you might need to use a vehicle for business purposes. While you might think that you wouldn't need these if you don't deliver your goods, that's not the only thing you would need a commercial vehicle for. A company vehicle will also be required if you pick up ingredients or other things you need to run your business, if you're transporting anything between multiple locations you may own, and many other expenses.
It should be noted that commercial vehicle insurance isn't limited to a company vehicle. Personal auto insurance won't cover you when using a personal vehicle for commercial purposes. You would need commercial auto insurance to be included in your bakery insurance program ensure your vehicle is adequately protected.
It is understandable to be concerned about your bakery insurance costs. This is especially true for new bakeries, as for new businesses, every dollar counts. Unfortunately, however, a single cost for bakery insurance can't be determined. This is due to the fact that there are several variables involved in determining the cost, and each business being unique, giving them different insurance needs. A Morison Insurance broker can provide you with a tailored bakery insurance quote that would provide coverage for your specific needs.
There are many factors involved in determining the cost of bakery insurance. Those factors include, but are not limited to, the following:
Please note that this is not an exhaustive list, as with any business insurance plan, there are many factors in determining business insurance premiums. Each insurance company will likely provide you with a slightly different quote. Please speak to a Morison Insurance broker to find out the cost and factors involved in your plan and bakery insurance quote.
You can get a bakery insurance quote from Morison Insurance. The friendly and knowledgeable brokers at our family-run business will ensure that our clients are given all of the care that we would give to members of our own family. Your bakery insurance and any other commercial or personal insurance will be safe with us. Call us at 1-800-463-8074 or fill out a form to receive a quote and get the coverage you deserve.
This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.