Liability Insurance For Home Bakery

Business By 1haleyj Updated 29 Jun 2015 , 6:35pm by Jinkies

1haleyj Posted 25 Jun 2015 , 7:27pm
post #1 of 12

Any suggestions on obtaining general liability insurance? I bake out of my home in Pennsylvania, not a business just cottage foods. I usually sell cupcakes at a large fall festival and they are requiring proof of a $1,000,000.00 liability policy. Sounds like a good idea all the way around but I don't even know where to begin.

11 replies
Singerssoul Posted 25 Jun 2015 , 8:04pm
post #2 of 12

I would try FLIP.  I have them and they offer such a policy and you can add insureds when needed. https://www.fliprogram.com/

Marielijah Posted 25 Jun 2015 , 9:18pm
post #3 of 12

Singerssoul ~ Can I ask where you are located and how much you pay for liability insurance?  Not sure what a fair price is for L.I....  Thank you.

 

littlejewel Posted 25 Jun 2015 , 9:46pm
post #4 of 12

When I discovered my county allowed baking from home, I contacted insurance agents. I guess they decided not to call me when discovered they don't h ave a policy to sell me. Another cake told me she is insured through flip

Jinkies Posted 25 Jun 2015 , 10:47pm
post #5 of 12

I have mine through my homeowners insurance.  Although, when my insurance agent contacted my homeowners, they said no way and we are not going to insure them at all because they are at higher risk for fire.  Yep, they dumped me because I bake a few cakes a week and I may set the house on fire.  Soooo, my agent had to call around and did find a really good company that was willing to do it.  It's about $45 a year added to my regular homeowners.

If/when I need a certificate for a venue, my agent takes care of it.

Singerssoul Posted 26 Jun 2015 , 1:24am
post #6 of 12

The insurance through FLIP ran me $299 for a year.  It is super simple to add an insured if needed, works great!

indydebi Posted 26 Jun 2015 , 11:48am
post #7 of 12

Contact your insurance agent.  If you don't have one, contact one who specializes in commercial insurance AND/OR represents multi-companies (i.e. NOT a state-farm agent, for example, who only represents state farm).  Those will access to multiple companies can find what you are looking for.  I was so lucky that my agent was the only Indiana agent that represented an ins. co. that specialized in bakery coverage!  I never would have found them on my own (and they wouldn't sell direct to me anyway ... they sell thru agent.)

1haleyj Posted 29 Jun 2015 , 4:32pm
post #8 of 12

Do you happen to know if I must be a certified "cottage food" baker?

1haleyj Posted 29 Jun 2015 , 4:52pm
post #9 of 12

The FLIP sounds good, although I'm afraid to start asking questions. Need to thoroughly read through my homeowners' policy, don't want dropped. I live in Pennsylvania and found out that if I own a pet, regardless of where they are/are not permitted in the home, I cannot be certified. Need to find out if I can be insured through FLIP as an individual, not a business. Also, any suggestions for finding a kitchen to rent? Churches, schools, etc? Any idea of a fair cost?

Webake2gether Posted 29 Jun 2015 , 5:49pm
post #10 of 12


Quote by @1haleyj on 42 minutes ago

The FLIP sounds good, although I'm afraid to start asking questions. Need to thoroughly read through my homeowners' policy, don't want dropped. I live in Pennsylvania and found out that if I own a pet, regardless of where they are/are not permitted in the home, I cannot be certified. Need to find out if I can be insured through FLIP as an individual, not a business. Also, any suggestions for finding a kitchen to rent? Churches, schools, etc? Any idea of a fair cost?

We tried to find a church or local business to rent their kitchen and it was impossible. I sure hope if you go that route you have better luck than we did. One thing I did to cut some work out for myself was called the health dept. and asked what churches were already licensed and inspected before I contacted any. I've heard of people having the opportunity to rent or use church kitchens but around here it doesn't happen :( 

I think when it comes to a fair price I would first decide how many hours you'd be using it and check the current rent for local commercial spaces. Fair price is different from one city to the next and subject to personal opinions :) 

1haleyj Posted 29 Jun 2015 , 6:18pm
post #11 of 12

Thank you I appreciate your help


Jinkies Posted 29 Jun 2015 , 6:35pm
post #12 of 12

I'm confused as to what you mean by "not a business, just cottage foods".   What does your town require of you to sell baked goods out of your home?

For example, I live in MA, and we have cottage food laws here.  However, my town requires that I am approved by the board of selectman (they issue me a license) and that my kitchen be inspected by the health inspector, etc etc.  Even though I am in a cottage food law state, I cannot prepare and sell food out of my home (or at farmers markets, etc) without the above.


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