I live in a semi-small town, and it seems like no one here has a clue when it comes to cake business laws. I have asked so many people (from those at the courthouse, the license office, the clerks) and everyone gives me a different answer as to what all I have to have to run my business.
One person said, "As long as you don't advertise, you don't need anything."
One said, "Well, with it being just a cake business and not a full bakery, you just need your business license."
Needless to say I'd rather be safe than sorry. I'm using the community center which has a health rated kitchen, and I have my business license, including county, city and state.
I started out making cakes for friends, but business is really growing, so I think it would be wise to get insurance. For those of you with established businesses, what kind of insurance do you have, and about how much do you pay for it?
I live in a semi-small town, and it seems like no one here has a clue when it comes to cake business laws. I have asked so many people (from those at the courthouse, the license office, the clerks) and everyone gives me a different answer as to what all I have to have to run my business.
One person said, "As long as you don't advertise, you don't need anything."
One said, "Well, with it being just a cake business and not a full bakery, you just need your business license."
Needless to say I'd rather be safe than sorry. I'm using the community center which has a health rated kitchen, and I have my business license, including county, city and state.
I started out making cakes for friends, but business is really growing, so I think it would be wise to get insurance. For those of you with established businesses, what kind of insurance do you have, and about how much do you pay for it?
I think that you should go to your auto insurer and ask their advice. They may not offer business insurance of any kind, but they'll probably have a MUCH better idea of where to send you than most!
Definitely talk to a licensed insurance agent. Don't try to buy this on your own. The Geico system just isn't a smart move with a business. 
Liability is usually a million dollar minimum. You'll also want to inquire about commercial auto insurance (and expect that to be really expensive!). If the agent says, "as long as you're not doing "much" business, you dont' need it," then make him put in writing what "much" business is. They may think it's $300 a year .... you may think it's $300 a month. Insurance for your equipment and what happens if the center's stove or refrigerator door falls off in your hand, or if something suddenly doesn't work and the center says you're responsible? Are you covered for that? Don't assume anything.
Talk to an agent. There's a reason you have to be licensed to sell insurance. It's contract law and there's LOTS of legal stuff you have to know.
I had to get insurance and show proof of $1 million in coverage to participate in a local street festival and was able to get it for $59.25 a quarter ($237.00 a year) from State Farm. After trying to get the local N*******de agent to give me a price for two months, he came back with $600 a year. Then, I filled out an on-line quote request somewhere and four agents called me the next day. State Farm was first so I called them back and got a fabulous agent that "bakes vicariously through my website." Don't know where all she can sell but I sing her praises any time anyone asks.
Hi Harley, you don't live too far from me, I'm in Hartselle. It's a small town too. I've been in business for 3 years. My shop is a block from Main St. You need Liability Insurance for your own protection and for your landlords piece of mind as well. Mine runs $250 a year. I'll be happy to give you my agents name if you pm me.
In our county, Morgan you also need your health permit from the HD to get your business license no matter how small you or where you set up shop, I'm not technically a bakery but because I deal with eggs I'm classified as a class 3 with the HD. I shared a kitchen at a local Deli when I first started for over a year and I was inspected separatly and paid all the fees. Check with your local HD as they are separate from the City. Unfortuniatly they make you jump through so many hoops but it's all worth it in the end. Pam from Bama
I apologize for sounding like a broken record in all of these threads, but since I work in commercial insurance, sometimes I just can't stand to not say something!
It's already been said in this thread, but it bears repeating - talk to a licensed, qualified agent about your insurance needs.
Know exactly what coverages you need and what are being offered.
Deal with an agent who you know will work with you and for you.
In the cake world you often get what you pay for, right? A too-good-to-be-true price might be exactly that. Insurance is a contract. You and the insurance company both have a part of the contract to keep, and your part is more than just timely payments. You are stating that certain things are true and they are offering you ONLY certain coverages and ONLY under certain conditions. You have insurance in case you need it. You want it to actually cover what you might need.
Do you need property coverage? Liability? Food spoilage? Business income and extra expense? The list goes on and on.
It isn't just about the price. It is about the product. 
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