Bakery business insurance costs vary based on coverage type, helping you plan your budget effectively. Monthly premiums range from $53 for professional liability to $134 for a business owner's policy.
How Much Does Bakery Business Insurance Cost?
Bakery business insurance can cost as little as $53 per month, but your specific business details will determine your actual rate.
Discover cheap bakery business insurance below.
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Updated: August 16, 2025
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Key Takeaways
Bakery business insurance costs range from $53 to $134 monthly, depending on your coverage type.
Your bakery insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable bakery business insurance costs.
Average Bakery Business Insurance Cost Overall
| BOP | $134 |
| General Liability | $91 |
| Professional Liability (E&O) | $53 |
| Workers Comp | $54 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Bakery Business Insurance Cost for General Liability Coverage by State
Your bakery business insurance cost for general liability coverage varies by location. Maine and North Carolina offer the lowest rates at $79 monthly, compared to the $91 national average, helping you plan your business costs.
| Alabama | $89 |
| Alaska | $85 |
| Arizona | $85 |
| Arkansas | $87 |
| California | $101 |
| Colorado | $90 |
| Connecticut | $99 |
| Delaware | $97 |
| Florida | $98 |
| Georgia | $92 |
| Hawaii | $99 |
| Idaho | $86 |
| Illinois | $100 |
| Indiana | $89 |
| Iowa | $86 |
| Kansas | $88 |
| Kentucky | $84 |
| Louisiana | $104 |
| Maine | $79 |
| Maryland | $87 |
| Massachusetts | $95 |
| Michigan | $86 |
| Minnesota | $85 |
| Mississippi | $91 |
| Missouri | $90 |
| Montana | $90 |
| Nebraska | $86 |
| Nevada | $102 |
| New Hampshire | $90 |
| New Jersey | $103 |
| New Mexico | $91 |
| New York | $106 |
| North Carolina | $79 |
| North Dakota | $79 |
| Ohio | $84 |
| Oklahoma | $87 |
| Oregon | $84 |
| Pennsylvania | $105 |
| Rhode Island | $100 |
| South Carolina | $93 |
| South Dakota | $85 |
| Tennessee | $89 |
| Texas | $92 |
| Utah | $86 |
| Vermont | $87 |
| Virginia | $83 |
| Washington | $103 |
| West Virginia | $95 |
| Wisconsin | $89 |
| Wyoming | $84 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Bakery Business Insurance Cost for Workers’ Compensation Coverage by State
Your bakery's cost for workers' compensation varies by state. North Carolina offers the lowest rates at $46 monthly and New York the highest at $63 monthly. Our analysis reveals how state regulations and claim histories create these differences.
| Alabama | $53 |
| Alaska | $50 |
| Arizona | $51 |
| Arkansas | $51 |
| California | $60 |
| Colorado | $53 |
| Connecticut | $59 |
| Delaware | $58 |
| Florida | $58 |
| Georgia | $55 |
| Hawaii | $56 |
| Idaho | $51 |
| Illinois | $59 |
| Indiana | $52 |
| Iowa | $51 |
| Kansas | $52 |
| Kentucky | $50 |
| Louisiana | $61 |
| Maine | $46 |
| Maryland | $51 |
| Massachusetts | $56 |
| Michigan | $50 |
| Minnesota | $50 |
| Mississippi | $53 |
| Missouri | $52 |
| Montana | $53 |
| Nebraska | $51 |
| Nevada | $61 |
| New Hampshire | $53 |
| New Jersey | $60 |
| New Mexico | $54 |
| New York | $63 |
| North Carolina | $46 |
| Oklahoma | $50 |
| Oregon | $49 |
| Pennsylvania | $62 |
| Rhode Island | $58 |
| South Carolina | $55 |
| South Dakota | $50 |
| Tennessee | $52 |
| Texas | $54 |
| Utah | $51 |
| Vermont | $52 |
| Virginia | $49 |
| West Virginia | $57 |
| Wisconsin | $53 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Bakery Business Insurance Cost for Professional Liability Coverage by State
Like other types of coverage, your cost for professional liability varies by state. The national average is $53 monthly, with North Carolina offering the lowest rates at $46 for E&O insurance, while Pennsylvania has the highest at $62 monthly.
| Alabama | $52 |
| Alaska | $47 |
| Arizona | $50 |
| Arkansas | $50 |
| California | $60 |
| Colorado | $53 |
| Connecticut | $59 |
| Delaware | $57 |
| Florida | $57 |
| Georgia | $53 |
| Hawaii | $56 |
| Idaho | $50 |
| Illinois | $57 |
| Indiana | $51 |
| Iowa | $50 |
| Kansas | $52 |
| Kentucky | $50 |
| Louisiana | $60 |
| Maine | $46 |
| Maryland | $51 |
| Massachusetts | $56 |
| Michigan | $50 |
| Minnesota | $50 |
| Mississippi | $53 |
| Missouri | $53 |
| Montana | $52 |
| Nebraska | $50 |
| Nevada | $60 |
| New Hampshire | $52 |
| New Jersey | $60 |
| New Mexico | $52 |
| New York | $62 |
| North Carolina | $46 |
| North Dakota | $46 |
| Ohio | $49 |
| Oklahoma | $50 |
| Oregon | $49 |
| Pennsylvania | $62 |
| Rhode Island | $58 |
| South Carolina | $54 |
| South Dakota | $49 |
| Tennessee | $51 |
| Texas | $52 |
| Utah | $50 |
| Vermont | $51 |
| Virginia | $49 |
| Washington | $60 |
| West Virginia | $55 |
| Wisconsin | $53 |
| Wyoming | $49 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Bakery Business Insurance Cost for BOP Coverage by State
Business owner's policy rates vary widely for bakery insurance costs by state. Monthly premiums range from $114 in North Dakota to $158 in Pennsylvania.
| Alabama | $130 |
| Alaska | $125 |
| Arizona | $126 |
| Arkansas | $129 |
| California | $148 |
| Colorado | $132 |
| Connecticut | $146 |
| Delaware | $142 |
| Florida | $146 |
| Georgia | $136 |
| Hawaii | $144 |
| Idaho | $126 |
| Illinois | $147 |
| Indiana | $127 |
| Iowa | $128 |
| Kansas | $129 |
| Kentucky | $124 |
| Louisiana | $154 |
| Maine | $119 |
| Maryland | $128 |
| Massachusetts | $139 |
| Michigan | $126 |
| Minnesota | $126 |
| Mississippi | $134 |
| Missouri | $130 |
| Montana | $133 |
| Nebraska | $129 |
| Nevada | $151 |
| New Hampshire | $134 |
| New Jersey | $151 |
| New Mexico | $131 |
| New York | $155 |
| North Carolina | $119 |
| North Dakota | $114 |
| Ohio | $123 |
| Oklahoma | $126 |
| Oregon | $125 |
| Pennsylvania | $158 |
| Rhode Island | $146 |
| South Carolina | $140 |
| South Dakota | $127 |
| Tennessee | $130 |
| Texas | $136 |
| Utah | $125 |
| Vermont | $130 |
| Virginia | $121 |
| Washington | $152 |
| West Virginia | $142 |
| Wisconsin | $131 |
| Wyoming | $123 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Bakery Business Insurance Cost
Insurance companies look at several factors to determine your bakery business insurance costs. Understanding these elements helps you create more accurate budgets. We explain the key factors that affect your rates below.
Geographic location
Your business location affects workers' compensation rates due to local regulations and claim frequencies. Local health codes, natural disaster risks and neighborhood crime rates can impact your premium costs, with state-by-state variations creating price differences.
Safety record and claims History
Previous claims impact future premiums, sometimes for three to five years. A single customer injury or food safety incident can increase your general liability rates at renewal.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and job classifications. Adding employees increases your payroll costs since insurers calculate your rates per dollar of wages paid.
Services offered
Different bakery services carry varying risk levels. A retail-only bakery faces lower premiums than one offering catering services or operating multiple locations. Special services like custom wedding cakes or large-scale wholesale operations affect your insurance costs.
Business size and revenue
Higher annual revenue means higher premiums since insurers view larger operations as having greater exposure to claims. A small neighborhood bakery earning $200,000 annually pays less than a multi-location operation with $2 million in revenue.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle Values
More expensive bakery equipment requires higher coverage limits, increasing your premiums. A bakery using commercial mixers, ovens and refrigeration systems worth thousands needs more coverage than one with basic equipment.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs.
How to Get Cheap Bakery Business Insurance
Smart shopping and risk management strategies can lower your bakery business insurance costs significantly, and these proven methods will help reduce your premiums both now and as your safety record improves.
- 1
Choose the right coverage types for your business
Start by identifying the essential types of business insurance your bakery needs to avoid paying for unnecessary coverage. A bakery typically needs general liability for customer injuries, property insurance for equipment and inventory, and food liability coverage for product-related claims. Workers' compensation is required if you have employees.
- 2
Shop multiple insurance companies
Insurance rates can vary between providers for the same coverage. Get quotes from at least three companies to find the best rates. Consider working with an independent agent who can compare multiple options for you and understand bakery-specific risks.
- 3
Bundle your coverage types
Insurance companies offer substantial discounts when you bundle multiple policies together. Combining general liability, property insurance, and other necessary coverage with one carrier typically costs less than separate policies from different providers.
- 4
Increase your deductibles
Choosing higher deductibles reduces your monthly premium costs. You'll pay more out-of-pocket when filing a claim, but the monthly savings can be significant. Select a deductible amount you can comfortably afford if you need to file a claim.
- 5
Pay annually instead of monthly
Most insurance carriers charge extra processing fees for monthly payments. Paying your premium annually eliminates these fees and often qualifies you for additional discounts. This upfront investment can lead to notable yearly savings.
- 6
Review and adjust your coverage annually
Your insurance needs change as your bakery grows. Review your coverage yearly to ensure it matches your current operations. Drop unnecessary coverage and adjust limits based on changes in your business size, equipment value, and number of employees.
Insurance for Bakery Business Cost: Bottom Line
Bakery business insurance costs range from $53 to $134 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Bakery Business Insurance Cost: FAQ
Our research team addresses the most common questions about bakery business insurance costs in the detailed answers below.
What is the cheapest type of bakery business insurance?
Professional liability insurance costs $53 monthly, making it the most affordable option. Most bakery businesses need general liability insurance ($91 monthly) to protect against customer injuries and property damage claims.
How much can I save by bundling my bakery business insurance policies?
Bundling policies through a business owner's policy (BOP) offers bakery businesses the most cost-effective insurance solution, with potential savings when combining multiple coverage types under one carrier.
What factors make my bakery business insurance more expensive?
Several factors can make bakery insurance expensive: business location, claims history, employee count, equipment value, coverage types selected, annual revenue and risk level of operations.
General liability insurance is the most cost-effective coverage for bakery businesses, with average monthly premiums of $91. This basic policy protects against common risks like customer injuries and property damage.
Should I choose a $500 or $2,500 deductible for my bakery business insurance?
Higher deductibles reduce monthly premiums but require larger out-of-pocket payments when filing claims. Consider your cash reserves and claim likelihood when choosing between $500 and $2,500.
How much does workers' compensation cost for bakery businesses by state?
Workers' compensation costs for bakeries range from $46 monthly in North Carolina to $63 monthly in New York, with rates varying based on your specific location.
Is business owner's policy (BOP) worth the extra cost for bakery companies?
A business owner's policy costs around $134 monthly for bakeries and combines essential coverages into one package. This bundled approach offers more value than purchasing individual policies separately.
How often should I shop around for bakery business insurance quotes?
Shop around for bakery insurance quotes annually during renewal time. Compare at least three insurers to find better rates, particularly when your business grows or changes.
How We Determined Bakery Business Insurance Costs
We collected bakery business insurance quotes from companies across different states. To make sure we compared apples to apples, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small bakery businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively serve the bakery industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.