I will be making a wedding cake for my sister this spring. However, I am still in the beginning stages of starting my business. The venue she wants to use requires liability insurance from outside bakers and I do not yet have any. The woman my sister spoke with at the venue said that some outside bakers have purchased liability insurance for only a day or two so they would be covered at the time of the event. I had never heard of this before and it is something I would definitely be interested in. My question is does this really exist and if so, how do I go about purchasing it? I don't know if it makes a difference but I live in Florida and am currently working under the cottage food law. Thanks for the help!!
I doubt you can get coverage for a single day, but try calling insurance companies that provide commercial liability policies (State Farm and The Hartford are two popular ones) and see what their policies are re cancellation. Worst case scenario, you would be on the hook for a full year of coverage (usually $400-500 in premiums) but you can make the effective date closer to your sister's wedding so you can take advantage of the coverage when you start your business.
Thanks Jason. I called State Farm and they sent me to BBIMI. I'm waiting to hear back from the agent with more info and a quote.
Another thing they may be able to do is to put a hold on your insurance. For example, you start on the day your sister gets married. Then you put a hold on the insurance as if you are temporarily stopping. Then you resume coverge when you start baking. The premium may still have to be paid monthly, but you will have a year paid by the time you actually start. It's an idea worth a try.
Another thing this may do is to get you started a little sooner than you planned, maybe in a more limited capacity, but a great time to get the bugs out of your plan.
I have had Travelers Insurance since I lived in Ga. and still have it here in Florida. I pay less than $300.00 and I pay premiums every 3 months which works out well for me. You might want to contact them and see what they can do for you and instead of putting the policy on hold (if it can be done) and still paying for it seems rather a waste of money. If you have to pay for it I would leave it in effect but, that is just my opinion. Good luck on your upcoming wedding cake.
You might want to contact them and see what they can do for you and instead of putting the policy on hold (if it can be done) and still paying for it seems rather a waste of money.
If you put a policy on hold the expiry date is extended. So for example, if you needed liability insurance from Nov 1 - Nov 30, you could pay for the whole year and put it on hold as of Dec 1. If you start up again the following June, you would still have 11 months of coverage left.
I really like the idea of only using the insurance when I need it. I will have to bring that up when I speak w the agent again. Thanks! Great idea!!