Small business writer Jessica Sanders shares tips for how to insure your bakery.
Every business needs insurance, but the insurance they need depends on a number of things, from the industry they operate in to the type of business they do. As the owner of a bakery, you may not be sure what kind of insurance is going to cover your very specific needs. Small business insurance ranges from very basic to business specific, and as a bakery, your business needs an array of coverage.
Basic business insurance
As a business, you need to cover all your insurance basics. You’ve invested in the property you run your business out of, and you just never know if an employee is going to slip and fall on spilled milk. Be sure that you have the basics covered before worrying about anything else.
· Property: Your basic property insurance will cover anything that happens to your property, or the contents inside the building, from a burglary to a fire or bad storm. These are things you can’t plan for, so property insurance is the very least you’ll need.
· Liability: Even when you put down wet floor signs, people are still liable to fall. Don’t let your finances suffer–be sure you’re covered in the event of an accident with liability insurance.
· Workers compensation: Your employees are important to you, so be sure that you are covered, as well as them, with proper worker’s comp insurance. Working in a kitchen makes this all the more important.
Insuring your deliveries
If your bakery also does catering or deliveries then this aspect of your insurance is critical. With expensive contents in your truck and drivers you can’t control all around you, you need to be covered from every angle.
· Commercial auto: If you own or rent a truck to make your deliveries, it should be insured. You can also insure your employees’ vehicles for when they are driving on company time.
· Inland marine: This protects the product in your vehicle when transporting. If in an accident, this will cover the products that were ruined as a result.
Keep your bakery protected
Finally, the most important protection is for your bakery specific needs. From food going bad to equipment dying out on you, there are a plethora of things that can go wrong, and you want to be safe in the event they do.
· Spoilage coverage: If your utilities go down and you walk into a kitchen full of spoiled food–this insurance will take care of the loss of income and/or costs.
· Equipment breakdown: If your state-of-the-art mixer breaks down, so does the rest of your business. Be sure all your expensive kitchen equipment is insured.
Running a bakery is like running any other business. While you have your basic insurance needs, such as general liability and property coverage, you’re going to have some industry-specific ones as well. Be sure to insure every aspect, from the food to the equipment, and you can bake with a clear peace of mind.