Bakery insurance averages $83 monthly, with costs ranging from $46 to $158 based on coverage types and your state's requirements.
Get matched with cheap bakery business insurance below.
Updated: November 10, 2025
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Bakery business insurance costs between $554 and $1,897 annually, varying by your coverage choices, location and specific bakery type.
Your bakery's insurance rates depend on where you operate, past claims, types of baked goods you make and how many employees work there.
Shop multiple business insurers, combine policies, raise your deductibles and pay yearly to lower your bakery insurance expenses.
Average business insurance costs for bakery companies for commonly needed coverage are as follows:
| BOP | $134 | $1,606 |
| General Liability | $91 | $1,089 |
| Professional Liability (E&O) | $53 | $634 |
| Workers' Comp | $54 | $643 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Your bakery business insurance cost for general liability insurance depends on where you operate. Maine offers the best value at $79 monthly compared to the $91 national average, while New York costs $106 monthly.
| Alabama | $89 | $1,066 |
| Alaska | $85 | $1,015 |
| Arizona | $85 | $1,024 |
| Arkansas | $87 | $1,045 |
| California | $101 | $1,213 |
| Colorado | $90 | $1,080 |
| Connecticut | $99 | $1,184 |
| Delaware | $97 | $1,168 |
| Florida | $98 | $1,179 |
| Georgia | $92 | $1,107 |
| Hawaii | $99 | $1,185 |
| Idaho | $86 | $1,033 |
| Illinois | $100 | $1,196 |
| Indiana | $89 | $1,062 |
| Iowa | $86 | $1,037 |
| Kansas | $88 | $1,058 |
| Kentucky | $84 | $1,003 |
| Louisiana | $104 | $1,247 |
| Maine | $79 | $944 |
| Maryland | $87 | $1,039 |
| Massachusetts | $95 | $1,143 |
| Michigan | $86 | $1,032 |
| Minnesota | $85 | $1,022 |
| Mississippi | $91 | $1,094 |
| Missouri | $90 | $1,075 |
| Montana | $90 | $1,085 |
| Nebraska | $86 | $1,031 |
| Nevada | $102 | $1,225 |
| New Hampshire | $90 | $1,084 |
| New Jersey | $103 | $1,234 |
| New Mexico | $91 | $1,095 |
| New York | $106 | $1,267 |
| North Carolina | $79 | $944 |
| North Dakota | $79 | $947 |
| Ohio | $84 | $1,011 |
| Oklahoma | $87 | $1,040 |
| Oregon | $84 | $1,012 |
| Pennsylvania | $105 | $1,257 |
| Rhode Island | $100 | $1,197 |
| South Carolina | $93 | $1,122 |
| South Dakota | $85 | $1,018 |
| Tennessee | $89 | $1,062 |
| Texas | $92 | $1,099 |
| Utah | $86 | $1,028 |
| Vermont | $87 | $1,046 |
| Virginia | $83 | $992 |
| Washington | $103 | $1,239 |
| West Virginia | $95 | $1,143 |
| Wisconsin | $89 | $1,069 |
| Wyoming | $84 | $1,007 |
Note: We based these general liability rates on bakery businesses with two employees across different states. Your rates will vary based on your location, claims history and the services you provide.
Workers' compensation insurance for bakeries costs wildly different amounts by state. North Carolina bakeries pay about $46 monthly. New York bakeries pay $62 monthly. State regulations and regional claim patterns create these $16 monthly gaps.
| 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 |
Note: These workers' comp rates assume two-employee bakeries. Your requirements and costs depend on your state's regulations, which differ everywhere.
Your professional liability cost differs depending on your state. Businesses pay $53 monthly on average nationwide for this coverage. North Carolina offers the most affordable rates at $46 monthly, while Pennsylvania businesses have the highest costs 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 |
Note: We based these professional liability rates on bakery businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Where you operate drives your bakery insurance costs. BOP insurance runs $114 monthly in North Dakota but $158 in Pennsylvania for identical coverage but a $44 monthly gap. Location alone changes what you pay.
| 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 |
Note: These BOP rates assume two-employee bakeries. Your business size, location and coverage needs change your rate.
Insurers charge bakeries anywhere from $66-$103 monthly for identical coverage. Each company focuses on different markets and assesses risk differently, shifting strategies over time based on profitability and expansion plans.
| Chubb | $99 | $1,193 |
| Coverdash | $77 | $925 |
| Hiscox | $87 | $1,047 |
| NEXT Insurance | $103 | $1,240 |
| Nationwide | $79 | $947 |
| Progressive Commercial | $81 | $977 |
| Simply Business | $80 | $954 |
| The Hartford | $66 | $792 |
| Thimble | $88 | $1,051 |
| biBERK | $73 | $879 |
Several factors affect your bakery business insurance costs when insurers calculate your policy rates:
Your bakery's address influences premiums in multiple ways. High-traffic tourist areas and downtown locations see elevated rates from greater customer volume and slip-and-fall risks. Weather patterns matter too.
Bakeries in regions prone to hurricanes or flooding pay higher property insurance costs, while state-specific liability laws create pricing variations across different markets.
Insurance carriers examine your claims background closely when setting rates. A foodborne illness claim or customer injury from five years ago continues affecting your premiums today.
Bakeries demonstrating consistent safe operations through regular health inspections and zero liability incidents earn preferred pricing, while repeat claims make coverage difficult to obtain.
What comes out of your ovens impacts insurance pricing. Bakeries producing standard breads and pastries have baseline rates, while those creating custom wedding cakes, allergen-free products or items with complex fillings face higher premiums.
Wholesale operations supplying restaurants and grocery stores carry different risk profiles than retail-only establishments.
Staffing levels fundamentally shape your insurance expenses. Workers' compensation premiums scale with payroll size, and bakery employees have elevated injury risks from hot ovens, sharp equipment, and repetitive motion tasks.
A home-based baker working solo pays minimal premiums, while a production facility employing 20 workers requires comprehensive coverage that reflects the heightened exposure.
Beyond baking, additional offerings change your risk equation. Bakeries with seating areas have premises liability for dine-in customers. Those providing catering services or delivering products take on vehicle-related exposures.
Operating espresso machines, selling lunch items, or hosting decorating classes each introduce new liability scenarios that insurers price into your policy.
Annual sales figures help insurers gauge your operation's scope. A weekend farmers market baker earning $30,000 needs far less coverage than an established bakery generating $800,000 through retail and wholesale channels. Higher revenue indicates more transactions, greater inventory values and increased claim potential, which all increase your risk.
The protection levels you choose make a big difference in cost. Basic general liability starting at $500,000 might work for a small operation, but many bakeries opt for $1 to $2 million to safeguard against serious claims. Product liability limits deserve special attention in food businesses, as contamination incidents generate claims exceeding standard coverage caps.
Your personal and business credit profiles factor into premium calculations. Bakery owners with strong credit histories often receive 20% to 45% discounts compared to those with credit challenges.
Cutting bakery insurance costs takes careful planning. Our step-by-step guide shows you how to secure cheap business insurance for your agency while improving your overall risk profile.
Bakeries need specialized insurance including general liability for customer injuries, product liability for foodborne illness claims, property coverage with equipment breakdown for ovens and mixers and spoilage insurance for power outages. Commercial auto is essential if you make deliveries to wholesale accounts or events.
Premiums vary based on whether you're retail-only, wholesale, or do custom cakes and catering. Insurers experienced with food businesses understand bakery-specific risks like allergen cross-contamination and can offer 15% to 30% better rates than general commercial carriers.
Most insurance companies offer discounts when you bundle multiple policies together. Combining general liability, commercial property and workers compensation with one carrier costs less than purchasing separate policies from different providers. Bundling also simplifies your insurance management with one point of contact.
Bakeries with newer commercial equipment can benefit from higher deductibles on property coverage. Keep deductibles lower on product liability since even a single foodborne illness claim can be costly, regardless of fault.
Annual payment eliminates monthly billing fees that cost bakeries several hundred dollars yearly. Many insurers also offer discounts for paying upfront, money that's better spent on ingredients or equipment upgrades than processing charges.
As you add wholesale accounts, expand catering services or open additional locations, your insurance needs grow. Annual reviews ensure your product liability limits match increased production volume and property coverage reflects new equipment investments like proof boxes or display cases.
Bakery business insurance costs between $46 and $158 per month, though your exact premium depends on factors like location, business size and claims history. You can lower costs by comparing quotes from several insurers, bundling policies, selecting higher deductibles and choosing annual payments instead of monthly.
Bakery business owners have questions about insurance costs. We answered the most common ones below:
Professional liability (E&O) is the most affordable at $53 monthly, but it only covers errors and omissions claims. Most bakery businesses need general liability coverage ($91 monthly) because it protects against customer injuries and property damage lawsuits.
You'll pay more in these states. General liability in California runs $101 monthly (versus $91 national average), and BOP costs $148 monthly (versus $134 average). New York costs $106 and $155, respectively.
Multiple risk factors increase premiums: specialized equipment like commercial ovens, food safety liability exposure, worker compensation costs, fire hazards from heating equipment, product liability risks and location-specific factors.
Workers' compensation costs for bakery businesses vary by state, spanning from $46 monthly in North Carolina to $62 monthly in New York.
Yes, BOP insurance is worth it for bakeries. BOP costs $134 monthly and bundles general liability, commercial property and business interruption coverage together. This bundled approach saves money compared to purchasing separate policies while offering strong convenience for bakery owners.
Bakery owners need accurate cost estimates to budget for insurance without overpaying. We collected quotes from multiple insurers across different states to show real-world pricing for bakery businesses.
Sample Business Profile
Every quote used the same baseline bakery:
Coverage Analysis
We used a typical small bakery business profile requiring comprehensive coverage. We selected companies offering broad national coverage and online quote capabilities, prioritizing insurers that 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
