(Newswire.net — March 2, 2021) — As a credible business owner, you must carry certain types of insurance. This makes you more trustworthy among consumers and serves to protect your personal and professional assets.
But what are the necessary types of insurance for bakeries? Are there special types of insurance policies for people in the food industry?
We’re here to answer all of your questions. Keep reading for the five important coverages you need.
1.Property and Contents Insurance
If you own a commercial property, you must invest in property insurance. In the event of a tragic accident or incident, this policy will cover the costs of damages and repairs. This coverage includes things like fires, hurricanes, tornados, theft, vandalism, and breaking and entering.
Some coverages, like flood insurance, may not be included. Make sure you ask specifically about what’s included in your policy before signing.
Additionally, you should opt to insure the contents of your bakery. This includes equipment, appliances, and food. This coverage will help cover the costs of replacing broken ovens, freezers, and more.
Food insurance coverage can help you recover the costs of spoiled food. For example, if your property loses power long enough for your perishables to spoil.
2.General Liability Insurance
General liability insurance is one of the most important types of insurance for bakeries. It’s vital to protect your business against potential lawsuits. If a customer were to slip and fall on a wet floor in your bakery, they can hold your business liable, but your insurance will cover the damages.
Bakery insurance and cafeteria insurance also cover food-related issues. For instance, if several of your patrons contract food-poisoning, these policies would cover medical bills and any other damages they pursue.
3.Worker’s Compensation Insurance
The structure of your business can also dictate your bakery insurance needs. If you have employees, you need to invest in workers’ compensation insurance.
If an employee is injured at work (burning themselves on an oven, slipping on the floor, etc.), this coverage will cover their medical bills. Worker’s comp will also cover lost wages if the employee is unable to work for any period of time.
4. Medical Insurance
Insurance coverage for bakeries often includes medical insurance, especially if you have employees working full-time. This is a great benefit to offer employees to show them that you appreciate their hard work.
Part of their paycheck goes toward their policy and the business covers the other portion. If you operate the business by yourself, it might still be beneficial to make sure you’re covered for medical expenses.
5. Commercial Auto Insurance
Commercial auto coverage is another type of essential insurance for bakeries. Many bakeries choose to offer delivery services in company vehicles. As such, the vehicle needs to be insured in case it’s ever involved in a traffic accident.
You’ll also need commercial auto insurance if you operate a food truck bakery. Because your entire business depends on the vehicle, it would be wise to make sure it’s covered.
Looking for More Information on Insurance for Bakeries?
Now that you know a little more about the different types of insurance for bakeries, do you know what you need for your business? Talk to your insurance provider to find the best plan for your specific needs and remember to think long-term.
And if you’re looking for more professional advice, check out some of our other business articles while you’re here. Our blog is full of informative content designed to help business owners succeed in their industry.