To The Home Bakers...how Much Do You Pay For Insurance?

Business By Artsygurl Updated 7 Nov 2010 , 5:10pm by jammjenks

Artsygurl Posted 3 Nov 2010 , 11:29pm
post #1 of 19

Strictly to home bakers without a storefront:

How much do you pay a year for insurance? (Product liability insurance, etc.)

I know it varies quite a bit, but I was looking to see if there's an average cost.

Thanks!!

18 replies
jason_kraft Posted 3 Nov 2010 , 11:47pm
post #2 of 19

$400/year liability insurance for $2M coverage with The Hartford via Wells Fargo, and $500/year for worker's comp coverage (to cover an unpaid intern) from the CA state fund.

This is in the SF bay area. We're not a home baker (that's illegal in CA) but we do not have a storefront either.

pinkpiggie78 Posted 3 Nov 2010 , 11:48pm
post #3 of 19

I pay $300 a year in VA.

cakegirl1973 Posted 3 Nov 2010 , 11:55pm
post #4 of 19

$425/year in Ohio for a $1 million dollar policy.

costumeczar Posted 4 Nov 2010 , 1:45am
post #5 of 19

Mine is $500 in Virginia...Who are you using, pinkpiggie? Yours is better than what I'm paying!

pinkpiggie78 Posted 4 Nov 2010 , 2:02am
post #6 of 19

RLI... I have $1,000,000 worth of liability and medical

costumeczar Posted 4 Nov 2010 , 2:09am
post #7 of 19

Thanks, I'll look into that. I think I have the same amount of coverage, but maybe it's higher. If not, I want a refund!

pinkpiggie78 Posted 4 Nov 2010 , 2:13am
post #8 of 19

We use Assurance Associates in Richmond as our broker.... as an FYI.

tootie0809 Posted 4 Nov 2010 , 1:33pm
post #9 of 19

I use the same insurance company as I do for my homeowner's insurance, so I got a nice price break. I pay about $27 per month for my business liability insurance.

sari66 Posted 4 Nov 2010 , 7:31pm
post #10 of 19

With state farm I pay 325 a yr for a 1 million

sweetonyouzz Posted 4 Nov 2010 , 11:02pm
post #11 of 19

In Canada it is 250 to 350 a year for between 1 and 2 million liability

costumeczar Posted 4 Nov 2010 , 11:47pm
post #12 of 19

I checked, I have $2million worth of coverage, so that's why I'm paying more. I'm married to the most paranoid financial auditor in the world, so I'm sure that at some point he wanted he to go with the higher amount icon_rolleyes.gif

jason_kraft Posted 5 Nov 2010 , 12:08am
post #13 of 19
Quote:
Originally Posted by costumeczar

I checked, I have $2million worth of coverage, so that's why I'm paying more.



It's also possible that $500 is the minimum premium amount for your broker. Before I switched, I used to pay ~$900 for a $1M liability policy...turns out that the broker did not sell GL policies with premiums less than $900. So if the actual premium set by the underwriter was (e.g.) $500, the broker still charged customers $900, and they pocketed the extra $400 as a referral fee.

costumeczar Posted 5 Nov 2010 , 12:50am
post #14 of 19
Quote:
Originally Posted by jasonkraft

Quote:
Originally Posted by costumeczar

I checked, I have $2million worth of coverage, so that's why I'm paying more.


It's also possible that $500 is the minimum premium amount for your broker. Before I switched, I used to pay ~$900 for a $1M liability policy...turns out that the broker did not sell GL policies with premiums less than $900. So if the actual premium set by the underwriter was (e.g.) $500, the broker still charged customers $900, and they pocketed the extra $400 as a referral fee.




That's a possibility.

Artsygurl Posted 5 Nov 2010 , 2:01am
post #15 of 19

Thanks for the posts. I'm hoping to get insurance through my homeowner's insurance company like tootie. I'd like it not to be too costly....wishful thinking probably...

pinkpiggie78 Posted 5 Nov 2010 , 2:14am
post #16 of 19

That's funny costumeczar.

Artsy... good luck!

sweetcakes Posted 5 Nov 2010 , 3:21am
post #17 of 19

i pay $425/yr for business liability 1M, and for business property attached to the home an additional $230 on our home owners, this covers loss of income if theres a fire, or something that prevents me from doing business and protects all the tools and equipment inthe business.

KalliCakes Posted 6 Nov 2010 , 8:40pm
post #18 of 19

$225/yr for $1m and 5k of equipment--through my home owners/car, etc. agency--in Ohio.

Good luck! :0)

jammjenks Posted 7 Nov 2010 , 5:10pm
post #19 of 19

$300/yr. for $1M liability coverage in NC.

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