Best Bakery Business Insurance

The Hartford ranks first for bakery insurance with a MoneyGeek score of 4.78 out of 5. Bakers pay $66 monthly for coverage that earned perfect scores in affordability, customer service, coverage and financial stability. Each bakery has different needs, so comparing quotes from Nationwide, biBERK and Simply Business helps you find the right protection for your baking business.

Note: We based all scores on a bakery business with two employees across professional liability, general liability, workers' comp and BOP policies.

The Hartford offers the cheapest bakery insurance at $66 monthly ($792 annually), the most affordable option for business owner's policies, general liability and professional liability coverage. For workers' compensation insurance, NEXT Insurance provides the lowest rates.

The Hartford offers the cheapest general liability insurance for bakeries at $70 monthly ($834 annually). That's $83 less per month than the average bakery pays for general liability, saving you nearly $1,000 annually.

NEXT Insurance offers the cheapest workers' compensation for bakeries at $50 monthly ($601 annually). That's $102 less per month than the average bakery pays for workers' comp coverage ($152 monthly), saving bakers over $1,200 annually. Consider The Hartford, Progressive Commercial and Thimble for other low-cost insurance options.

Bakers pay an average of $82 monthly for professional liability coverage, but The Hartford offers the most affordable professional liability insurance at just $47 monthly ($566 annually), saving you over $400 per year. NEXT Insurance and Progressive Commercial also provide low-cost options for bakery owners comparing rates.

The Hartford charges just $95 monthly ($1,143 annually) for business owner's policies that bundle general liability and property coverage for bakeries. That's $128 less per month than the $223 average, saving bakers over $1,500 annually. biBERK and Coverdash offer the most affordable BOP insurance after The Hartford at $103 and $118 monthly.

In general, bakery business insurance costs are the following for the four most popular coverage types:

• General Liability: $91 on average per month ranging from $79 to $106 depending on state
• Workers Comp: $54 on average per month ranging from $46 to $63 depending on state
• Professional Liability (E&O): $53 on average per month ranging from $46 to $62 depending on state
• BOP Insurance: $134 on average per month ranging from $114 to $158 depending on state

Workers' compensation is legally required in most states once you hire employees, while general liability protects against the most common bakery risks like customer injuries and foodborne illness claims. Get these required coverages for bakeries first, then add commercial property insurance to protect expensive equipment, product liability for wholesale operations and commercial auto if you make deliveries.

• Workers' Compensation Insurance: Required by law in most states once you hire employees, workers' compensation covers medical bills and lost wages when your bakers burn themselves on 450-degree ovens, decorators develop carpal tunnel from repetitive piping work or delivery drivers get injured in accidents. You avoid costly lawsuits, and your employees get the medical care they need.
• General Liability Insurance: Picture this: a customer slips on flour dust near your display case and breaks their wrist. Or a child has a severe allergic reaction to nuts in your cookies. General liability steps in to cover medical bills, legal fees and settlements when accidents happen at your bakery. Most bakeries carry $1 million per occurrence with $2 million aggregate limits.
• Commercial Property Insurance: Commercial ovens, mixers, refrigeration units and inventory cost thousands of dollars to replace. If fire damages your equipment or thieves steal your stand mixer collection, commercial property insurance pays to replace what you've lost and repair your building. Bakeries typically need $100,000 to $300,000 in equipment coverage, plus protection for ingredients and finished goods.
• Product Liability Insurance: If your baked goods cause food poisoning or allergic reactions, product liability covers medical expenses and legal costs when customers sue. Bakeries selling at farmers markets or through wholesale channels face higher risks because you can't control how others store and handle your products after purchase. Most bakers carry $1 million to $2 million in coverage.
• Business Interruption Insurance: A kitchen fire destroys your proofing cabinet and damages your deck ovens, forcing you to close for three weeks of repairs. Business interruption insurance replaces the $15,000 in lost wedding cake orders and covers your $8,000 monthly rent and staff payroll. Without it, many bakeries can't afford to reopen after major disasters.
• Commercial Auto Insurance: Required if you own delivery vehicles, commercial auto insurance covers accidents when drivers transport cakes, pastries or supplies. Your personal auto policy won't cover business use, leaving you exposed to massive liability if your driver causes injuries or property damage. Bakeries making deliveries need $500,000 to $1 million in liability coverage per vehicle.

Finding affordable coverage that actually protects your baking business takes some research. Use this guide on how to get business insurance to find coverage that protects your business at the right price.

The Hartford leads bakery insurance with rates starting at $66 monthly and top rankings for customer service and claims processing. Your bakery needs general liability, workers' compensation, commercial property and product liability to handle daily risks from customer injuries to equipment breakdowns. Get quotes from several insurers to get coverage that provides your baking business financial protection without straining your budget.

We answer frequently asked questions about bakery business insurance:

We selected the best business insurer for bakery companies based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue