craigas Posted 12 Feb 2013 , 9:33pm
post #1 of

I have a home based cake business but bake my cakes off site at a rental kitchen.  I only do about $10,000-$15,000 in sales each year.  I have looked into liability insurance in case some one gets sick or something from a cake and wants to sue me.  For $2,000,000 my cost is $600 per year which seems like alot of money.  Does anyone have thoughts on this?

 Thanks so much!

16 replies
jason_kraft Posted 12 Feb 2013 , 9:37pm
post #2 of

AIn the US people generally pay $300-500/year for business liability so your quote is not too far off. Hopefully you'll never need to use it, but compare it with the cost of paying for a legal defense and a possible judgment and you'll see that it's worth it. You can pass the cost along to your customers relatively cheaply if you have decent sales volume.

Corinne77 Posted 12 Feb 2013 , 10:14pm
post #3 of

I have heard $500 per year is a pretty good average for liability insurance. It's worth it just for the peace of mind. I'll be getting it once I'm up and running!!

craigas Posted 12 Feb 2013 , 10:21pm
post #4 of

Thank you both :)

I know you are right, it's just hard to swallow!

Stitches Posted 13 Feb 2013 , 4:27am
post #5 of

Mine is $250. per year in IL.

ellavanilla Posted 14 Feb 2013 , 8:39pm
post #6 of

I would check around. I have a million dollars of liability insurance for my daycare and it's only $275/year.

 

The rest of my business insurance is woven into the family business...

Jackies Cakes Posted 16 Feb 2013 , 11:40pm
post #7 of

I just started up my own home based baking business and I am glad I saw this forum so I can look into getting liability insurance ! 

melanie-1221 Posted 17 Feb 2013 , 12:19am
post #8 of

I'm insured for 1,000,000.00 per occurrence liability, my premium is $207.00 a year. 

That also includes coverage on my tools and supplies, oven, and utility interruption .

I'd say $600 is pretty reasonable for twice the coverage.

lorieleann Posted 18 Feb 2013 , 8:35pm
post #9 of

You have it good!  I just got a quote for AZ and it was $750 (plus broker fees and tax...$928 total)  for the year.  Most of the insurance companies are too wary of Food home processed, no matter that one is operating under Cottage Food laws and creating non-haz foods.  It is based on history of claims and since there isn't much in this state, it is high.  

jason_kraft Posted 18 Feb 2013 , 9:50pm

A

Original message sent by lorieleann

You have it good!  I just got a quote for AZ and it was $750 (plus broker fees and tax...$928 total)  for the year.  Most of the insurance companies are too wary of Food home processed, no matter that one is operating under Cottage Food laws and creating non-haz foods.  It is based on history of claims and since there isn't much in this state, it is high.  

Which insurance company? My premium was originally $900 with a smaller insurance company before I switched to The Hartford ($500 for the same coverage).

experimenting Posted 18 Feb 2013 , 10:02pm

My insurance is $425/yr. from the Hartford - up to $1 mil. I'm a CFO baker though (in WA).

They said I can break it down to as much as 4 quarterly payments, but there would be an added $5/installment. I think I'll try to just swallow the pill whole to save a few bucks :)

lorieleann Posted 19 Feb 2013 , 2:35am
Quote:
Originally Posted by jason_kraft 


Which insurance company? My premium was originally $900 with a smaller insurance company before I switched to The Hartford ($500 for the same coverage).

 

 

i think it was with Country General.  I am going to go the Hartford site and see if i can get it lower with them. Especially since they seem to have history dealing with CFL policy. 

 

thanks! 

klan30 Posted 19 Feb 2013 , 6:33am

check out fliprogram.com  I think it runs about $300/per year

experimenting Posted 19 Feb 2013 , 7:05pm
Quote:
Originally Posted by klan30 

check out fliprogram.com  I think it runs about $300/per year

Is this who you use? Is their coverage comparable to others? How about their customer service? I ask because I usually hear one or two (usu. The Hartford) get recommended on here, but have never heard of flipogram. $300/year would be fantastic if it's the same coverage!

jason_kraft Posted 19 Feb 2013 , 7:09pm

AI believe FLIP is relatively new. They are underwritten by Great American, which is a reputable insurance company, so I don't think there would be any issues.

experimenting Posted 19 Feb 2013 , 7:16pm

Thanks jason_kraft! That's what I wanted to hear/read :)

klan30 Posted 20 Feb 2013 , 4:55pm

I just purchased the insurance about a month ago.  But Great American did have good ratings.  I guess you never know how good the company/coverage is until you need it.

Quote by @%username% on %date%

%body%