Does anyone know how much insurance you need to have if you start a business out of your home?
It depends on the kind of business. I have a policy that covers catering from my commercial kitchen (in my garage) $2 million-it costs $500 a year. The Hartford is very good about these policies.
Million dollar MINIMUM liability. Most venues require this amount when they ask you for a certificate of liab insurance (which some have to have in hand before they let you provide a food product in their facility).
I think that mine is for a million $$ and I pay 29 a month. I am just a home based business, but do deliver to many big venues in the area. I needed to be safe...it is a good thing to have. The world today is "sue happy!"
sbcakes: Can you tell me who you go through for that inshurance please? Do you feel like it covers you well? I'm haveing a hard time getting the right coverage.
I go through State Farm. They are the same company that covers our car and homeowners. I just called them up when I was starting up and told them I am starting a home based bakery and would like insurance and that it what they told me I needed at the very minimum. It covers me if god forbid someone tries to say my cake poisoned them, or anything like that at all. It also covers my kitchen and supplies in the event of some sort of fire, robbery, etc. I also picked up this optional insurance, I forget what it is called...something to do with temperature? Anyway it covers my labor, supplies, and the cost of a cake in its entirety in the event I made a cake and I lost my power, or the electric for some reason...it would reimburse me for all of my work and money loss...too bad for the customer-
My advice would be to call an insurance agent and tell them exactly what you are doing and what your needs are. They will tell you what your state requirements are and so forth. HTH! Good luck!!
HI , This is my specialty, if you are doing the business out of your home, make sure that if you post a sign that you home owners insurance does not have a problem with it. if you are not posting a sign , still contact you home insurance, because some of your items are covered under business items up to a certain amount, depending on what company and what state you live in. I know some of my stuff exceeds my coverage, i have a rider. Also look at increasing your liab on your home to 500,000 or a million.
I would contact a broker, don't just call let say one company, a broker will get you the best price from several companies and you do not have to spend the time calling all of the companies your self. Defiantly look at 1 mil laib 2 mil agget and loss of income, I have seen many home business go up in flames and the be no coverage. also if you are keeping your recipes in your computer make sure you back them up, in most cases if you can show that you backed them up, even if the main frame and the back up disk are lost there is Manuscript coverage in allot of polices and recipes involved in you business can and or could be covered.
ok sorry , i love insurance almost as much as i love cooking