If you're selling cakes out of your home & you're licensed, do you need any type of insurance? If so, what kind? And where would you get such insurance?

Yes you need insurance. Some home policies will cover your business. I got my catering license from The Hartford, about $500 a year for $2 million.

Thank you!

Can you tell me a little about what it covers & what it's called? I have no clue

Hey, JoannB, thanks for mentioning the brand name. I was doing some research in my area, but few agents want to handle food business insurances, unless it is for structure and equipment only.

Theresa

I had no idea insurance was available for home bakers learn something new on here every day!

Do you have to be licensed to get special insurance? ie about and beyond your homeowners....

Thanks!

the policy covers my equipment and $2million in liability for a food business. I have a bit more than just cake decorating.

Only legal business can be insured, and SOME homeowners policies cover a small home business.

I found The Hartford when I was looking to insure my personal chef services. This company does understand the food businesses, unlike many other companies.

The main thing is the "liability" insurance. This would cover someone who purchases a cake from you and then alleges they got sick, food posioning etc. You don't have to have a business license to get insurance.

If you have a legal business (you can't insure an illegal act) you can contact your homeowners insurance company. they can tell you if they insure home business. Other wise, you can contact The Hartford company. I know they offer this insurance.

Great to know... so I need to work on a licence first

Your homeowners would cover your mixer, and things like that....from theft, fire, etc....( not from wear and tear) liability however that you carry on your homeowners policy usually will not extend to your product. Therefore, you would need a seperate general liability policy. Most of the time they run around $300-$500 a year depending on where you are located.

And I have a general liability policy and do not have a business license. Normally the Insurance Company doesn't even ask about that.

Thanks so much, I will call and ask how it would work here in FL since I don´t have a license. Appreciate your help.

Clarification, a business license and a legal business are not necessarily the same. Many legal decorators do not need a business license.

I would bet that if you had a claim, meaning someome sued you, your insurance company could deny any payment if your business was not legal.

Okay... so I guess I'm a little confused / scared...

I know I can't get a license in Colorado (w/o LOTS of $ & work) ...

To "sell" to friends / daughters classmates / etc... do you think you should have the G.L. policy or would homeowners be enough? Is it legal to do this without a license?

I don't have a business name / insurance / license, can I still give out a business type card for people (just freinds / friends of friends / etc) to buy cakes from me? I don't want to "advertise". Just want practice / a little extra money to help the family.

Thanks. I guess I"m scared (can you tell??)

I used to live in Colorado so I know how tough it is to get licensed. We moved to TN about 2 years ago and I can have a licensed kitchen in my home and it's not that hard to do.

Right now I don't have a license but I have talked to the Health Department. Their answer to me is that I can get my home kitchen licesed if I want....they can't stop me from baking in my home and selling my cakes

I also called my Insurance agent and I have a GL Policy just in case. That just covers liability if someone gets sick etc.....Your homeowners will not cover that.

Talk to your Insurance agent and be honest with them, they will be your best source of information as far as what a General Liability Policy will cover.