Insurance???

Business By tenayr Updated 20 Aug 2008 , 7:47pm by ziggytarheel

tenayr Posted 19 Aug 2008 , 9:10pm
post #1 of 18

Hey, my name is Tenay and i live in california Los Angeles , I have a home-based bakery, i am now looking for liability insurance.
I want to know since i have never shopped for business insurance what is the going rate? I just got a quote for $350.00 a year with a million dollar coverage. is that too much, or is that not enough? please someone tell me what you know, cause i dont know anything!

17 replies
Cascades Posted 19 Aug 2008 , 9:54pm
post #2 of 18

Tenay,

I live in California and have a home based bakery. That quote is a very good price. I have been quoted as much as $600.00 a year. Would you mind sharing the name of your company and agent?


Thanks

Cascades

FromScratch Posted 19 Aug 2008 , 11:43pm
post #3 of 18

As far as I know, you cannot have a home-based bakery (or any food service business) in California.. unless you have a completely separate commercial kitchen. I would check with your local department of agriculture or department of health and human services and find out about that before you pay for a policy.

That's a good price though.. mine was $300 for the year same coverage. icon_smile.gif

tenayr Posted 20 Aug 2008 , 12:25am
post #4 of 18

Thank you for your responses,

jkalman,
Actually it is illegal to sell food to anyone that was cooked out of your home, in Cali. So when I say home-based i mean my office is at home, I rent a kitchen from a bakery up the street but thanks for looking out for me.

Cascades,
and I got that quote thru www.2insure4less.com and a lady or man ( i'm really not sure what it was) named Abir Walters called me the number is 714-962-2045 just tell her or him you were refered by Tenay Travis. but try the website first, you might get it for less.

FromScratch Posted 20 Aug 2008 , 12:37am
post #5 of 18

That's what I thought (about Cali's regulations). That's a great quote then. icon_biggrin.gif

QueenBee1 Posted 20 Aug 2008 , 1:54am
post #6 of 18

You might want to check out The Hartford insurance company. I pay right around $350 per year for $2,000,000 in coverage.

Cascades Posted 20 Aug 2008 , 1:59am
post #7 of 18

Thanks for the info. I do have a separate kitchen on my property. Maybe that's why my quote was so much higher.

I'll check into it though--- Thanks again

Cascades

leah_s Posted 20 Aug 2008 , 2:21am
post #8 of 18

I have 2 mill in coverage and pay about $550 a year. It's up for renewal, so I may start shopping.

Chefperl Posted 20 Aug 2008 , 2:29am
post #9 of 18

Jkalman,
just to let you know, you can have liability insurance and not be a legal business.
When I did Pampered Chef and Arbonne I carried a 1/2 million policy just in case.

ziggytarheel Posted 20 Aug 2008 , 10:15am
post #10 of 18

Rates vary by state and even county/city, so it can be very hard to compare other areas to where you are.

And, under most circumstances, insurance will not cover an illegal activity. So if you were insured and not legal and had a claim, it would not pay. Insurance is a contract, and if you do not abide by the terms of the contract, there is no coverage.

Just an FYI from someone who works in the business. icon_smile.gif

turnerdmann Posted 20 Aug 2008 , 10:43am
post #11 of 18

I have a home based cake business and it is insured through Farm Bureau for $150 per year 1M coverage. Hope this helps.

loriemoms Posted 20 Aug 2008 , 1:00pm
post #12 of 18
Quote:
Originally Posted by ziggytarheel

Rates vary by state and even county/city, so it can be very hard to compare other areas to where you are.

And, under most circumstances, insurance will not cover an illegal activity. So if you were insured and not legal and had a claim, it would not pay. Insurance is a contract, and if you do not abide by the terms of the contract, there is no coverage.

Just an FYI from someone who works in the business. icon_smile.gif




Ziggy:

Do you sell insurance? I am looking for insurance and good rates..do you sell liability or can recommend someone?

psurrette Posted 20 Aug 2008 , 1:17pm
post #13 of 18

I live in MA and just got a qoute for 1M its 500 a year. The insurance man told me to wait longer before getting it becasue I dont do enough business. I do about 10,000 a year he told me to wait till I am at 20,000
not only that we have like 2 companies here that will insure home bakeries most wont do it especially because I have a dog. She stays in the bed room when I am baking. ( she is lazy and sleeps all day anyway)
I hope I never have a problem!

loriemoms Posted 20 Aug 2008 , 1:37pm
post #14 of 18
Quote:
Originally Posted by psurrette

I live in MA and just got a qoute for 1M its 500 a year. The insurance man told me to wait longer before getting it becasue I dont do enough business. I do about 10,000 a year he told me to wait till I am at 20,000
not only that we have like 2 companies here that will insure home bakeries most wont do it especially because I have a dog. She stays in the bed room when I am baking. ( she is lazy and sleeps all day anyway)
I hope I never have a problem!




I am surprised you could do a legal kitchen with a dog. I even had to give my tropical fish away and my daughter adopted my budgie. (I have visitation rights) We aren't even allowed to have animals that stay outside all the time. I of course asked if the deer were legal. haha! (we have a TON of deer, wild turkey and owls here)

psurrette Posted 20 Aug 2008 , 1:47pm
post #15 of 18

As long as the dog is out of the kitchen while I am baking and decorating its fine in my town. Other towns in MA have different rules. Thank god because I couldnt give her away!

ziggytarheel Posted 20 Aug 2008 , 3:53pm
post #16 of 18
Quote:
Originally Posted by loriemoms

Quote:
Originally Posted by ziggytarheel

Rates vary by state and even county/city, so it can be very hard to compare other areas to where you are.

And, under most circumstances, insurance will not cover an illegal activity. So if you were insured and not legal and had a claim, it would not pay. Insurance is a contract, and if you do not abide by the terms of the contract, there is no coverage.

Just an FYI from someone who works in the business. icon_smile.gif



Ziggy:

Do you sell insurance? I am looking for insurance and good rates..do you sell liability or can recommend someone?




I am not an agent, although I play one on TV. Sorry, I couldn't resist. icon_smile.gif I work at an agency for a relative. We don't presently have any home bakers (or other bakers) insured, although we did a few years ago. My first suggestion is to go to your own agent and get a quote from him or her. Having multiple lines of business with one company can sometimes (not always) help your rate in some way. And having an agent you know and who knows you is really important. He can be a big help to you in so many areas and will often be in a position to send referrals your way. If you have a claim, or just some questions (like, "why are they auditing me?"), you want someone who cares about you and is there to help.

loriemoms Posted 20 Aug 2008 , 7:31pm
post #17 of 18

I am surprised how low everyone has been talking about what they are paying, so I asked my DH, and he said our policy doesn't just cover liability, but it also covers business interruption, that is if my kitchen catches on fire or if we have a hurricane and it flattens our house...Home owners insurance will pay for some things, but they won't pay for replacement of loss business, and inventory loss (like all that sugar and fondant you have in storage!)

ziggytarheel Posted 20 Aug 2008 , 7:47pm
post #18 of 18

Yep. There is insurance, and then there is insurance. icon_smile.gif

Sounds like you have good coverage. So many people just want to check it off their list and get the cheapest thing out there, but then when they have a claim to file, they either aren't covered, or aren't covered adequately. Liability, property, business interruption (sometimes called business income and extra expense), those are important coverages.

For example, if a home baker were to have a total loss fire in her home, it could take many months to settle the claim. If her income from her business was vital, life would be even more difficult if she had only liability coverage for her business. And if that fire was in a townhouse or a condo...the claim could take FOREVER to settle and rebuilding is somewhat at the mercy of your neighbor's insurance company. If your company is the only one ready to settle, you can't rebuild if you don't have neighbors on either side putting up their structure.

We don't want to think about these things, but if you are going to have insurance, it is a good idea for it to actually help you if you need it.

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