I'm getting all my paperwork in order to start to do this as a business and I'm wondering if I need personal liability insurance.
My regular insurance agent said that she is going to try to get me an endorsment in my home policy to cover me in case somebody get's hurt when they come to pick up a cake etc.. And to try to get my car covered to use for business.
But she can't do personal liability in case somebody gets food poisoning or they don't like the cake i made and they sue me for emotional suffering for example (hey...it might happen!)
I call two commercial insurance companies and the quotes are $500/year minimum!! I'm expecting to do two cakes a month in the beginning....that is too much money for me! What do i do?
I have insurance. I thought it was a good idea since I'm selling perishable items. My insurance falls under catering. I pay a little over three hundred a year, or about 1 wedding cake. I prefer to deliver my cakes so I don't have people at my house.
In my location, lenders here will not even consider you unless you have personal or business liablilty insurance, or a policy pending upon start of business.
There are other vendors out there who are much less expensive.
There are several threads on this subject in the forum archives. Use the search feature and they should come up for you.
I am looking at general liability insurance also. Got 4 quotes in the $875- $1500 range and then when I told them I could get insurance through a Personal Chef program and maintain that for $300.... and that I didn't want coverage included for my kitchen and supplies.... the quotes changed to
$350 no deductable
and another $281 with $250 deductable
both 1 mil per incident 2 mil life of policy, one had 10k medical included the other $5k.
You can pm me if you want further info. Right now I'm looking at both of these options and also the route of insurance through Personal Chef org.
I have been looking into this as well. The person I spoke with told me to wait till I do more business because companies dont want to insure because of low profit. Also if you have a home bakery there is alot of red tape SHOULD something happen. He told me the best way to do it is have the home insurance and liablilty insurance thru the same company. That way there will be no fighting on who pays for what. I just pray nothing happens. I do deliver my cakes so people dont have to come to my home.