I am getting ready to move to a new residence in a couple months and will be pursuing licensing a home bakery there. I've gone through the paperwork from my state (PA - region 7), but do not come across anything about insurance requirements.
Does anyone have advice on insurance?
I don't know anything about PA, but I know most of the venues in our area are requiring proof of liability insurance before you can deliver a cake there...as well as many schools are requiring that before parents can bring in cakes, etc.
If you know anyone in the restaurant/bakery biz, ask them who they are using. We found those who specialize in these kinds of policies are cheaper then just using the same guy you use for your car, etc...
talk to your insurance agent. The reason he has a license is because he's required to take all kinds of education and pass all kinds of testing to demonstrate knowledge of insurance. He'll be able to direct you to the types of insurance you'll need AND, if he's an independent agent (sells for more than one company) he can price out your insurance to a number of companies to get you the best price possible.
Whether or not a venue requires it or whether or not your state requires it, you have to have it to protect yourself and your assets. Even if you incorporate, you still need insurance for protection.
thanks so much for all the advice and help!
Most insurance companies will not insure a home business on a homeowners or a renters policy - unless it's a sit at a computer desk and send emails type of business. Because there is a risk associated with food and people getting ill, you're most likely going to have to get a seperate (sp?) General Liability policy to cover the business exposure. The premium of a GL policy is based on many different factors, but the biggest rating factor is your Gross Receipts (your sales). So if you're just starting out and will have limited sales, you'd probably be looking at around a $500 minimum premium for a $1,000,000 annual policy. Indydebi is right, you'll have to talk to you agent. You might also want to check with an Independent Agent - they have relationships with several different insurance companies and can shop it for you. You'll have more options with an independent agent. HTH!