Why do bakers and bakeries need insurance?
Food poisoning complaints
Running a small bakery, you like to sell a variety of sweet and savoury. Little twists go down well with your regulars. But one day your spicy sausage rolls prove less popular. Several customers complain of food poisoning. It turns out a faulty oven timer led to undercooked food.
While you pull items from the shelves and issue a warning, a letter lands asking for compensation. With products liability insurance built into your bakers’ policy, you could get financial help if your goods cause illness.
An injured baker
After removing sourdough loaves from an oven, one of your employees leaves a tray to cool. Unaware the tray is hot another employee goes to move it and badly burns their hand. This employee can’t work until the burn heals, and they seek compensation for lost earnings.
If your bakery has staff, you may be legally required to have employers’ liability insurance (external link). With this, you can get help compensating injured staff.
Home bakery theft
For a home-based bakery business, equipment is everything. You might own state-of-the-art pastry sheeters, bread moulders, or worktop mixers. It takes a long time to collect and can be gone in an instant.
When you return from a well-earned holiday, you find a smashed window. Inside, some of your machinery has been stolen. Without replacements, you won’t be able to decorate a wedding cake in time. Contents insurance can help replace a home-based baker’s commercial kitchen equipment.
What insurance is available for bakers and bakeries?
Public liability insurance
Public liability insurance for bakers provides cover if your work injures a member of the public or damages their property. This type of insurance could mean you’re protected if someone slips on a wet floor in your bakery. If you serve hot drinks, your bakery assistant might accidentally spill coffee on someone’s phone.
If someone makes a public liability claim against you, we can help cover the costs of defending and settling the claim. This might include compensation payments and court attendance fees.
Products liability insurance
Products liability insurance can offer bakers an extra layer of protection for claims that relate to your products. Baked goods go through many production stages – and slip-ups happen. Food that is prepared incorrectly can be hazardous. The same applies if one of your Danish buns is contaminated with a small object or unlisted allergen.
Provided you adhere to food safety regulations, products liability insurance can help with defending and settling a claim. If you don’t feel you’re at fault, this might mean launching a legal defence.
Business contents insurance
Business contents insurance protects the equipment you need to work as a baker. Theft, loss and accidental damage can bring your bakery to a standstill – whether you rent a workspace or bake professionally from home. With the right insurance, you can get help with the cost of replacing or repairing equipment.
It’s not just the machines you use to bake, either. Equipment, documents, and stock may fall under business contents insurance for bakers. If there’s an overnight break-in at your high street bakery, this product could help to replace broken glass and money taken from a safe.
Some bakers tailor their policy with other options, such as employers’ liability insurance, generally a legal requirement (external link) if you employ staff, portable equipment insurance, equipment breakdown insurance and commercial property insurance.
Speak to one of our experts to find the right level of insurance for your bakery.
Build my coverInsurance for bakers and bakeries: FAQs
Can I deliver food without business insurance?
If your bakery offers a home delivery service, you might need a range of insurance covers to stay protected. It can be a good idea to inform your car or van insurance provider. Delivering food is considered a commercial activity and may affect your policy. You may require business use coverage for a delivery vehicle. There are also public liability risks associated with delivering food. For example, you could knock over a vase when delivering a wedding cake.
Do I need insurance for my bakery employees?
Yes, it’s likely you’ll need employers’ liability insurance for your bakery employees. Employers’ liability insurance is a legal requirement (external link) in most cases. It’s there to help you pay compensation in the event an employee of yours is hurt while doing their job. This applies to part-time or volunteer staff too.
How much does bakers’ insurance cost?
Business insurance for bakers starts from as little as £8.40*. However, we calculate the cost of business insurance based on your individual needs and the policy you decided to build. With Hiscox, you pay for what you add, and we tailor your policy to you.
*Figures based on an average of all business insurance policies sold to at least 10% of our customer base between April 2023 and April 2024
Does bakery insurance cover my stock?
Yes, our business insurance for bakeries and home bakers can help cover stock if your policy includes contents cover. This might include cover damage to stock that’s been caused by a fire, flood or escape of water. Please note that standard excess could mean claims under £250 may not be covered.
Related articles and guides
How Hiscox stock insurance helped a shop
Learn how a client of ours suffered a financial loss. With a commercial insurance policy, we helped them recover from stock damage.
Sole trader vs. limited company
It can be easy to confuse the difference between a sole trader and a limited company. If you’re ever unsure, our blog can help you understand how they differ.
How to price a product
You don’t want to give away your bakes, but you also don’t want to price out customers. Discover how to price your products with our blog.