Find out about insurance policies for bakeries and the areas of your business you could protect with the right form of cover.
As a bakery owner, you’ll know that there are risks involved in the day to day running of your business. Whether it’s the risk of theft, or of personal injury, there are a number of threats that could have a detrimental effect on your business. Fortunately, you can take out insurance for your bakery to protect against these unexpected incidents.
Technically, bakers insurance is not a single insurance policy – it’s an expression used to refer to the different forms of cover that come together to protect a bakery against the risks it is exposed to. For example, smaller bakeries would typically purchase a shop insurance policy – a package with a set range of covers (and some optional extras) – while bigger bakeries or cake shops are more likely to need more comprehensive protection as their risks can be bigger – wholesale production, supply to large offices; this comes in the form of commercial combined cover. What that means simply is rather than starting with a shop package and adding optional cover, the cover is pieced together one section at a time. It can be beneficial for a regulated broker to complete this work for you, meaning you are not taking the role of insurance expert as well as retail expert and baker.
Ultimately, the cover you need will depend on your circumstances, although there are certain forms of protection that almost all bakeries are likely to benefit from.
Buildings and contents protection often forms a core part of any business’s insurance package – and a bakery is no different. Buildings insurance protects the physical bricks and mortar of your premises, while contents insurance protects the items within it. As an example, if your building was the subject of an attack of vandalism, and the front door and all of the windows needed replacing immediately, it could be a financial burden on your business – or entirely unaffordable altogether. A successful claim on a buildings insurance policy could provide financial assistance for you in this situation.
Contents insurance can be tailored to protect the items that you deem vulnerable or valuable, including, equipment, stock, and cash on premises. For example, if a serious fire damaged specialist equipment that you rely on – such as a cutting or shaping machine – then a contents insurance policy could help you fund repairs or replacements. It’s for this reason that you may also want to include this cover in your bakery insurance package.
Because people will be visiting your bakery on a daily basis, it’s likely you’ll benefit from public liability insurance. This policy can provide protection for you in the event your business is held responsible for causing injury to a member of the public, or damage to their property. For example, if a customer was to slip and fall while on your business premises, you could be liable for paying for resulting medical bills and compensation. A public liability insurance policy could reimburse you for these costs.
You may also want to have protection in place for the possibility that one of your products causes harm to a member of the public. Product liability insurance can provide you with this kind of cover. This policy is particularly pertinent to a baker’s insurance package as it could cover you if one of your products causes food poisoning or a piece of equipment used in making the product, ends up in the actual product. A successful claim could help you to fund a legal defence as well as pay compensation to the third party in the event a claim was brought against you.
If you employ any staff at your bakery, then there’s a good chance that you’ll be legally required to have employers’ liability insurance in place. If an employee suffers illness or injury as a result of carrying out their working duties, then you could be held liable. Employers’ liability insurance can protect you should you find yourself in this situation.
If your bakery is unable to operate normally, due to an interruption outside of your control, then you could lose revenue – and your business could suffer as a result. For instance, let’s say that the building next to you suffers a fire, and your building is damaged as a result. You may have to close your bakery for an extended period of time until the building is deemed to be safe. You could miss out on revenue during this closure, and may struggle to pay your overheads, or staff wages. But, with business interruption cover in your bakers insurance package, these costs could be covered for you, saving you from financial vulnerability.
As mentioned, the best way to make sure that your business is properly protected, is to purchase a bakery insurance policy that’s tailored to your exact needs. There’s a chance that you may not know which forms of insurance could best benefit your business – especially when it comes to the more specialised forms of cover. The good news is that Make It Cheaper Financial Services' team of insurance experts are always on hand to help you decide which covers to include in your bakery insurance package – as well provide you with a competitive quote for your policy.
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