Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Liability Insurance
New Posts  All Forums:Forum Nav:

Liability Insurance

post #1 of 17
Thread Starter 

I have a home based cake business but bake my cakes off site at a rental kitchen.  I only do about $10,000-$15,000 in sales each year.  I have looked into liability insurance in case some one gets sick or something from a cake and wants to sue me.  For $2,000,000 my cost is $600 per year which seems like alot of money.  Does anyone have thoughts on this?

 Thanks so much!

post #2 of 17
In the US people generally pay $300-500/year for business liability so your quote is not too far off. Hopefully you'll never need to use it, but compare it with the cost of paying for a legal defense and a possible judgment and you'll see that it's worth it. You can pass the cost along to your customers relatively cheaply if you have decent sales volume.
post #3 of 17

I have heard $500 per year is a pretty good average for liability insurance. It's worth it just for the peace of mind. I'll be getting it once I'm up and running!!

post #4 of 17
Thread Starter 

Thank you both :)

I know you are right, it's just hard to swallow!

post #5 of 17

Mine is $250. per year in IL.

post #6 of 17

I would check around. I have a million dollars of liability insurance for my daycare and it's only $275/year.

 

The rest of my business insurance is woven into the family business...

post #7 of 17

I just started up my own home based baking business and I am glad I saw this forum so I can look into getting liability insurance ! 

post #8 of 17

I'm insured for 1,000,000.00 per occurrence liability, my premium is $207.00 a year. 

That also includes coverage on my tools and supplies, oven, and utility interruption .

I'd say $600 is pretty reasonable for twice the coverage.

post #9 of 17

You have it good!  I just got a quote for AZ and it was $750 (plus broker fees and tax...$928 total)  for the year.  Most of the insurance companies are too wary of Food home processed, no matter that one is operating under Cottage Food laws and creating non-haz foods.  It is based on history of claims and since there isn't much in this state, it is high.  

post #10 of 17
Quote:
Originally Posted by lorieleann View Post

You have it good!  I just got a quote for AZ and it was $750 (plus broker fees and tax...$928 total)  for the year.  Most of the insurance companies are too wary of Food home processed, no matter that one is operating under Cottage Food laws and creating non-haz foods.  It is based on history of claims and since there isn't much in this state, it is high.  
Which insurance company? My premium was originally $900 with a smaller insurance company before I switched to The Hartford ($500 for the same coverage).
post #11 of 17

My insurance is $425/yr. from the Hartford - up to $1 mil. I'm a CFO baker though (in WA).

They said I can break it down to as much as 4 quarterly payments, but there would be an added $5/installment. I think I'll try to just swallow the pill whole to save a few bucks :)

post #12 of 17
Quote:
Originally Posted by jason_kraft View Post


Which insurance company? My premium was originally $900 with a smaller insurance company before I switched to The Hartford ($500 for the same coverage).

 

 

i think it was with Country General.  I am going to go the Hartford site and see if i can get it lower with them. Especially since they seem to have history dealing with CFL policy. 

 

thanks! 

post #13 of 17

check out fliprogram.com  I think it runs about $300/per year

post #14 of 17
Quote:
Originally Posted by klan30 View Post

check out fliprogram.com  I think it runs about $300/per year

Is this who you use? Is their coverage comparable to others? How about their customer service? I ask because I usually hear one or two (usu. The Hartford) get recommended on here, but have never heard of flipogram. $300/year would be fantastic if it's the same coverage!

post #15 of 17
I believe FLIP is relatively new. They are underwritten by Great American, which is a reputable insurance company, so I don't think there would be any issues.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Liability Insurance