Cake Delivery Stipulation In Contracts
Business By southaustingirl Updated 12 Aug 2007 , 3:03am by Sweetcakes23
If you deliver your cakes, do you have a delivery stipulation in your contracts in the event of a car accident? Or any other type of accident?
What happens if, heaven forbid, you get rear ended by someone and the cake is damaged? Does the customer still have to pay? Do you try and recoup the cost from the other driver? What if the car accident is your fault?
What happens in the event of any other type of accident? You trip and drop the cake, someone causes you to trip and drop the cake, etc....
Has this ever happened to anyone?
That's an interesting question. I don't think I'd charge a customer for something that is out of their hands. If you're buying furniture or appliances and something happens on the way to delivering to you, the store doesn't make you pay for damaged goods. In fact, they could owe you. They usually replace the item, though, but you're still inconvenienced. You couldn't bake another cake immediately. So, if it were me, I'd hustle to try to help find a replacement for the event (from a bakery or something), plus I'd probably offer a complimentary replacement of my own in the future, just for good business practices.
Gee, I just hope nothing like that ever comes up. It would be good to have a clause in the contract for protection. Good thinking!
Mickig 
Here's my "Liability Clause:"
Creative Cakes and Cookies shall not be liable for any delay or inability to deliver due to circumstances beyond its control (i.e., unforseen transportation problems the day of delivery, weather that prohibits travel, hospitalization or death in immediate family, acts of God or any other cause beyond Creative Cakes and Cookies control) that make it impossible to perform contracted services. If item(s) ordered are not completed at time of uncontrollable circumstance, deposits will be refunded less the cost of any supplies or equipment purchased and a fee of $100 for consultation and planning time. If item(s) are completed at appropriate time, but cannot be delivered due to uncontrollable circumstances as described above, deposits will be refunded up to a maximum of 1/2 of total cost of item(s). If Responsible Party(ies) desire and are able to pick up completed item(s), a refund of $50.00, will be given to Responsible Party(ies).
Hopefully, it will never be needed.
Hey Austin girl... Im a misplaced Austin girl!
In response... never having been in that situation before, Im curious as to what others would say too.
In the case of me I carry a camera with me at all times.
After set up I take a pix so there are no if ands and buts. Which would be good to have to prove to the insurance company of needed
If rearended... (which is a BIG POSSIBILITY) in Austin... most people are understanding that certain things just cant be avoided. Unfortuantely... I would eat the the cost (no pun inteneded). Or offer the customer a cake from another bakery if there isnt time to recreate another one.
PS I put a sign on my vehicle that says... go around me... cake delivery in progress. (I drive to Austin to deliver sometimes and its a 2.5 hr drive)
I would definately charge it to the insurance of the driver... or offer the driver who hit you the chance to pay out of pocket.
But I will say a BIG PRAYER that this will never happen to any of us
Kim
I think you would be able to recoup those costs from the other driver especially if you've covered yourself with a sign on your car stating you have a cake on board "caution." 1. It explains why you are being extra cautious (don't impead traffic though...) 2. It is a caution warning to other drivers.
3. When questioned at the scene by officers, they will most likely believe you weren't driving crazy, you were delivering a cake!
I am licensed, I do use a sign when delivering, and I would try for those recovered costs! It's no different than if I had my business laptop in the car and it got damaged from them hitting me.
I have been rear ended 4 times! One of those times, a fire truck hit me. I have been hit by a bus and some girl backed into my car, too. So I am kinda leary about delivering cakes.
I wonder what are the odds of having a accident while delivering a cake.
I like the idea of taking a picture of the cake once it has been delivered and srt up.
I doubt your car insurance will cover damages for a cake in an accident unless you are a licensed business and then your business insurance probably covers the cake loss.
You MUST have a commercial auto policy if you are using your personal vehicle to deliver product. If your insurance company finds out that you were using personal auto for business purposes during the accident, you are NOT covered and the claim will be denied. As unscrupluous as insurance companies can be, I wouldn't put it past the other guy's company to try to deny the claim on this basis, even tho' their insured person was totally at fault.
I worked 15 years at one of the largest insurance companies in the world - auto dept. Plus my insurance agent confirmed this to me when I got my commercial auto policy.
Comm'l policies differ from personal policies, also, in that on a personal auto policy, if you give you neighbor permission to drive your car and she is in an accident, you are covered because she was driving with your permission. On a commercial policy, you must list the drivers on the policy or, permission or not, they (you!) are not covered.
Comm'l auto polices are also about 4 times higher (or more) than a standard personal auto policy.
Check with your insurance agent on what your risk is and how your state insurance laws work.
Indebi, I believe you must know this stuff better than I, but why wouldn't they cover it if it's simply an item in my car? Unless we are doing a large business (I'm only doing a small amount of cakes out of my home) so how is that different than if someone hits me and causes damage to anything that I have in my vehicle? My agent told me that anything in my vehicle, computer, T.V., furniture (if I was driving the truck), or whatever it may be, would be covered. So how would that differ from a cake that was worth $500.00? Just curious....
In Canada, we can use our personal vehicle for business purposes 6 times a month, if we will be using it more than that then we must get commercial car insurance.
For now that is the coverage I have.. if I need it more than that I can also use my Mom's, daughters car 6 times a month as well. (a little way around having to pay so much... told to me by my insurance agent!!) But up here our insurance is also government run... Basic insurance has to go through the government, no exceptions..
Like Debi said though, totally different than liability insurance... which I have 3 million of... just in case.
Indebi, I believe you must know this stuff better than I, but why wouldn't they cover it if it's simply an item in my car? Unless we are doing a large business (I'm only doing a small amount of cakes out of my home) so how is that different than if someone hits me and causes damage to anything that I have in my vehicle? My agent told me that anything in my vehicle, computer, T.V., furniture (if I was driving the truck), or whatever it may be, would be covered. So how would that differ from a cake that was worth $500.00? Just curious....
If they find out it's a BUSINESS. Business and personal policies are two different animals....two different rules ..... two different rates. If you are using your truck to run a small delivery business and your customer's item was stolen from your truck .... your personal policy covers you and your personal items. And your personal auto wouldn't cover the liability lawsuit if/when the bride sues because her wedding was "ruined".
Each state's insurance laws differ, so your best bet is to contact your agent to find out what your risk and liabilities are.
Quote by @%username% on %date%
%body%