I apologize if this is a redundant question, but I've searched for an answer and have sifted through too many topics that didn't address my question
I am in the process of obtaining my business license and want to purchase liability ins for my home based business. I have no idea what type of insurance I would need in this case or what it's called. Is there a specific type for food producers or is it just a general type of policy???
I'm in Florida and operating under the new Cottage Food Law. If anyone can point me in the right direction I would greatly appreciate it!!!
Call the company that holds your homeowners/renters/car insurance. Explain to them you will soon be in business, and ask if they offer business liability insurance. If they do not, they will be able to refer you to someone who does.
Mine is through Hartford, but I know that State Farm also offers it as well.
Generally speaking, there is insurance to cover your production area (your home kitchen) and liability insurance if someone has a problem with your product. To cover your production area you need to speak with the agent who currently insures your home. For liability insurance (also called vendor's insurance) you will need to find a company that handles commercial insurance. If you decide on both, hopefully one agent can handle both types of insurance in one policy.
Some baking businesses don't get any insurance if they only make non-hazardous products (which are the lowest risk). Some businesses only purchase liability (vendor's) insurance. Many of my students have opted for no insurance, and some only purchase liability insurance because most farmers' markets require it. My opinion: It's your comfort level.
One thing all home-based bakers may want to consider, especially if your customers come to your home to pick up their products, is to increase your home owners liability coverage in case a customer falls while on your premises. You may even consider an umbrella policy.
Talk to your home owners insurance agent as they should be able to assess your needs and provide you with the appropraite coverage.
Thank you for your help! I don't plan on anyone coming to my home to pick anything up as I will be delivery only. I'm thinking that the liability (vendor's) insurance is what I'm looking at. My main concern is being sued by a customer, etc.
I will make some calls. Thanks for your help!
Tell them that you need the kind of insurance that caterers have, because they never seem to know how to categorize home bakers.
You'll also need to call your car insurance company and tell them that you'll be using your car for deliveries. That requires a commercial insurance so that if you get in an accident while you're out delivering you'll be covered.
State Farm has a policy specifically for small bakeries, maybe specifically home bakery businesses.
I was in the same position, but here in NY, not FL.
Was going to open a home bakery (under the NY Home Food Processor Exemption Permit). I called my home insurance (Liberty Mutual) and asked them. They did not offer commercial insurance, but highly recommended the Hartford Company, and gave me an agents phone.
Was happily surprised to find out that a 2 Million dollar liability was $425/year.
I ended up NOT doing the home bakery . . as in NY it had too many restrictions, so we moved into an existing chocolate shoppe.
I got mine through the Hartford via USAA. It is about $350/yr. I got a combined commercial/personal auto coverage through Progressive. I don't remember the rate right off hand, but it isn't too bad. My vehicle was new and close to $30K, so it might be more than for a vehicle that is older and smaller. (It was more than I really wanted to pay, but oh well...)