What is Bakery Insurance?

Running a bakery can be a personally and financially rewarding enterprise, but it comes with a certain amount of risk. No matter how small or large a bakery business is, there are almost always potential liability and property risks to protect against. Bakery insurance helps bakeries in Massachusetts safeguard themselves from a variety of risks that they’re exposed to.

Bakery insurance is a specialized form of commercial insurance that’s designed to meet the needs of bakery businesses. Since bakeries face multiple possible risks, policies are usually written as package policies that come with several coverages.

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What Businesses in Massachusetts is a Bakery Policy Right For?

Most businesses in Massachusetts that make and sell baked goods ought to have a bakery policy in place, for few (if any) businesses are completely free of potential risks and this is normally the most appropriate type of policy for these businesses. Some examples of such businesses include:

  • Retail bakeries that make pastries
  • Ethnic bakeries that make traditional baked goods
  • Wholesale bakeries that make fresh or packaged products
  • Specialty bread stores
  • Home-based bakeries

In certain situations, some businesses may have insurance needs that are similar to bakeries but actually be better off with a slightly different type of insurance policy. Coffee shops that bake their own goods, for instance, may need many of the coverages that are in bakery policies but also need other coverages. A coffee shop might find that a cafe insurance policy is more suited to the business' needs.

Businesses that are unsure whether a bakery or other type of insurance policy is right for them should speak with an insurance agent who specializes in bakery policies. A specialized agent will be familiar with what protections these policies provide, and they’ll have the expertise necessary to determine whether this is the best policy option for a business.

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Bakery Insurance Massachusetts

What Coverages Do Bakery Policies Provide?

Since businesses can often adjust the coverages in their particular bakery policies, the exact protections that are afforded can vary. A home bakery insurance policy likely won’t be as robust as a policy that’s crafted for a wholesale bakery with operations throughout the state.

Nevertheless, there are a number of coverages that these policies frequently make available as standard or available protections. A few of the more common ones are:

  • General Liability Coverage, which may protect against common accidents occurring on company property
  • Product Liability Coverage, which may protect against injuries and illnesses caused by baked goods
  • Building Coverage, which may protect a bakery-owned building and other facilities
  • Contents Coverage, which may cover bakery-owned equipment, supplies and ingredients
  • Equipment Breakdown Coverage, which may protect against unexpected malfunctions of vital equipment
  • Food Spoilage Coverage, which may protect against ingredient and food spoilage following a covered incident
  • Loss of Income Coverage, which may protect against revenue losses sustained if operations are suspended after a covered incident

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Why Do Bakeries Need Product Liability Coverage?

Product liability coverage normally extends liability protections to incidents in which a manufactured or sold product causes personal injury or property damage. With regards to bakeries, this coverage might apply to instances where a baked good makes a customer ill or injures them. If broken glass, metal shards, malignant bacteria or other hazardous items end up in a batch of baked goods, this coverage could prove indispensable.

How Much Do Home Bakery Insurance Policies Cost?

Bakery policies at large tend to be affordable, but home bakery insurance policies are often particularly inexpensive. Because home bakeries tend to be smaller and have only basic coverage needs, insurance for these businesses usually doesn’t cost much. 

For an exact idea of how much home bakery insurance will cost, business owners ought to speak with an independent insurance agent. An independent agent can compare quotes for home bakery insurance policies (and other bakery policies) from multiple insurers, which makes it easy to see how much different companies will charge to insure a specific business.

Bakery Insurance Massachusetts

How Can Bakeries in Massachusetts Get Bakery Insurance?

For help insuring a bakery business, contact the insurance agents at Haberman Insurance Group. Our independent agents have worked with many bakeries in Massachusetts, and they have the expertise necessary to get you a policy that’s well-suited to your business’ needs.

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