Cost Of Liability Insurance?

Business By CakeCrystal5308 Updated 15 Nov 2011 , 7:57am by johnnystrauss77

CakeCrystal5308 Posted 8 Jun 2011 , 4:46pm
post #1 of 14

Hello All

I am looking into renting an incubator kitchen in Southern California.

They require a food handlers card (easy to get) and liability insurance.

I am trying to find out approximately how much this insurance will cost me through your experience??

I am trying to not call and talk to a broker yet as I have no clue when I may start renting the kitchen.

So, for those of you who did get it... how much did it cost you?? I am trying to make a business plan so that hubby and I can plan it right.

Thanks ahead of time for your help.

13 replies
cakegirl1973 Posted 8 Jun 2011 , 4:58pm
post #2 of 14

My insurance is with The Hartford and costs $425/yr.

jason_kraft Posted 8 Jun 2011 , 5:04pm
post #3 of 14

We also use The Hartford for our business liability insurance (we rent a commercial kitchen in San Jose, CA) and we pay $500/year.

yummy_in_my_tummy Posted 9 Jun 2011 , 1:12am
post #4 of 14

How funny, I just answered another post about insurance!

There are a ton of different rating factors when it comes to your premium. The biggest rating factor is your gross receipts. The more money you are making, the more cakes you are selling, therefore the risk is larger and the insurance company will charge you more icon_smile.gif

I'm also with The Hartford and my premium is $450 a year. Keep in mind though, that my gross receipts are very low.

The thing about a GL policy is that you want to try to estimate your gross receipts as close as you can to what they will actually be. At the end of your policy period, the insurance company can audit your receipts and charge you additional premium if you brought in more than you originally estimated. HTH!

leah_s Posted 9 Jun 2011 , 2:15am
post #5 of 14

State Farm offers a small bakery policy (includes home bakeries) Mine is $250 per year

tavyheather Posted 9 Jun 2011 , 2:32am
post #6 of 14

hey! I'm in Southern CA too...from what I know talking to other cake shop owners/friends, and the health dept, you need the food safety class (approx $151), (not just the card)...a caterers license, and the commissary agreement inspection...

BUT I'm intrigued...where did u get this info and where is the kitchen you're planning to rent?

and to answer ur Q I've heard the cheapest ppl have found for ins. is $300/yr icon_smile.gif ...I think, I'll chk my notes and u tell me where this kitchen is!

tavyheather Posted 9 Jun 2011 , 2:49am
post #7 of 14

ok, sorry to get ur hopes friend who owns the cake shop (and was just on Amazing proud icon_wink.gif) said the cheapest she found was $500/yr through State Farm, for a 1 million policy

scp1127 Posted 9 Jun 2011 , 7:20am
post #8 of 14

Mine is $275 through State Farm. I have property insurance also, but this is the liability. Remember, vehicles are rated commercial if you are going to deliver.

Leah, it just went up evidently.

CakeCrystal5308 Posted 9 Jun 2011 , 4:42pm
post #9 of 14

Thank you everyone for the information... at least I have a rough start point now.

@tavyheather I was talking to the CuliFlex Kitchens in Orange County.

"Thank you for your interest in our kitchen facility in Orange. We require product liability insurance and food handler's certificate. The hourly rates are $30/hr or $25/hr for 8+hr shifts, no minimum. If you're interested, please fill out the attached Kitchen Rental Application so that we can better understand your production needs. You can send it back to or fax 714-633-7030. We will need the application prior to a kitchen tour. Thank you."

Sandra Omura
CuliFlex Kitchens

So, that is what I am planning on doing... saving up and buying hours, and then reserving as I need them. But gotta get the requirements first. icon_smile.gif

tavyheather Posted 9 Jun 2011 , 5:54pm
post #10 of 14

that is what the place I'm looking into says as well, though I'm in SD. I'm even more confused now!

I wrote the incubator kitchen rental owner and she says I shouldn't need a caterers license for what I'm doing (which is choc dipped strawberries) but I'm calling her today b/c I want real answers! I'll let u know what I find out!

louanne Posted 9 Jun 2011 , 6:16pm
post #11 of 14

i hav a store front mine is $506 yearly, it covers loss of equipment ingredients etc, also covers if someone is injured on premises and if someone get ill from a product we offer, covers if i get hurt in the course of work and cannot work and lots of other details, abviously each different scenario has different pay outs but the most important which is personal injury or illness to protect my consumers is around1.5 mil ( it think, i would have to dig my policy out if the filing cabinet to be sure)

ajwonka Posted 12 Jun 2011 , 2:43pm
post #12 of 14

For $5000 gross a year, my insurance through Hartford is $500. That covers the whole company (my partner & i).

tavyheather Posted 13 Jun 2011 , 3:37pm
post #13 of 14

ok so silly Q, do you pay the whole ins. up front or in monthly installments like auto ins. ?

johnnystrauss77 Posted 15 Nov 2011 , 7:57am
post #14 of 14

Can any of you suggest a good insurance agent in Orange County I am kind of looking for my car and house? It must be someone whom you have done business with or consulted regarding your health insurance plan. Any names/telephone numbers would be welcome rather than generic suggestions to approach Bank or other places.

Orange County Insurance

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