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!
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.
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!!
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...
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 !
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.
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.
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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.
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 :)
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!
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!
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.
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.
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