Cpr Needed Asap... Lol

Business By Carolynlovescake Updated 23 Sep 2007 , 12:41am by ThatsHowTcakesRolls

Carolynlovescake Cake Central Cake Decorator Profile
Carolynlovescake Posted 21 Sep 2007 , 6:19pm
post #1 of 15

I am calling for quotes on isurance today...

Just got off the phone with my first call.

They said the least I should do is $1million in liability insurance. For a home kitchen!

I think my heart stopped, I lost control of my body functions and pooped myself.

I know it's standard and when talking with others regarding that amount it doesn't seem so bad but when it's being talked about with me, my cakes, and my business it becomes a "wow factor".

Wow because this is really happening, and Wow because that's a lot of money we are talking if someone sues me.

I am about to panic and say let's not and say we did. icon_lol.gif

14 replies
MichelleM77 Cake Central Cake Decorator Profile
MichelleM77 Posted 21 Sep 2007 , 10:47pm
post #2 of 15

How much would that cost you to carry? That's a lot of insurance!

I called about liability insurance and it would run $200 for $300,000 a year...and I thought that was a lot!

Hippiemama Cake Central Cake Decorator Profile
Hippiemama Posted 21 Sep 2007 , 11:39pm
post #3 of 15

I've been checking into insurance. 1-2 million is the usual minimum recommendation.

Erdica Cake Central Cake Decorator Profile
Erdica Posted 22 Sep 2007 , 12:25am
post #4 of 15

icon_surprised.gificon_eek.gif

Omg. That just....well...yeah. Wow is all I can say. Holy cow.

playingwithsugar Cake Central Cake Decorator Profile
playingwithsugar Posted 22 Sep 2007 , 12:34am
post #5 of 15

Shop around. Someone here on CC had gotten a quote of about $30 per month for $1 million in liability insurance. That thread was posted quite a while ago, and I do not remember what company they went with. Perhaps they will see this and speak up.

Theresa icon_smile.gif

MimiFord Cake Central Cake Decorator Profile
MimiFord Posted 22 Sep 2007 , 12:42am
post #6 of 15

My nursing liability insurance is $1 million for $98/year.

I don't know why a home based business owner's would be so much higher, but I'm not an insurance person either.

Appreciate the information, though - will have to shop around.

RaYiTo Cake Central Cake Decorator Profile
RaYiTo Posted 22 Sep 2007 , 12:51am
post #7 of 15

SOMETIMES THAT KIND OF INSURANCE IS NOT THAT EXPENSIVE AS YOU THINK IT IS. I WORK FOR AN INSURANCE COMPANY AND THATS CALLED GENERAL LIABILITY INSURANCE I BELIVE. BUT IN SOME CASES YOU CAN GET IT AND MAKE A DOWN PAYMENT AND THEN YOU CAN PAY IT ON INSTALLMENTS. IF YOU NEED A BOND YES THAT KIND OF INSURANCE IS EXPENSIVE.

SweetArt Cake Central Cake Decorator Profile
SweetArt Posted 22 Sep 2007 , 3:20am
post #8 of 15

Mine is $2 million and costs me $30 a month. I went with American Family.

Carolynlovescake Cake Central Cake Decorator Profile
Carolynlovescake Posted 22 Sep 2007 , 5:49am
post #9 of 15

I called State Farm & they referred me to two agencies.

That was the first. She's running numbers & calling back.

The second one it going to call back Monday.

The good news is that State Farm's policy will stay intact once I'm licensed as long as the business insurance is paid. State Farm covers household & new one covers only business.

darby822 Cake Central Cake Decorator Profile
darby822 Posted 22 Sep 2007 , 6:23am
post #10 of 15

I used to own a small poolside snack bar and I had a million in liabilty for $20/month. That was through State Farm. I started the policy two years ago but when we moved the new owner got the same rate.

Erdica Cake Central Cake Decorator Profile
Erdica Posted 22 Sep 2007 , 11:41am
post #11 of 15

I've never really thought about insurance.

Do you get insurance so someone can't sue you? Like if someone gets sick or something?

RaYiTo Cake Central Cake Decorator Profile
RaYiTo Posted 22 Sep 2007 , 12:59pm
post #12 of 15

yes erdika that`s why you get the insurance,just in case they put a claim because they got sick!! and want to sue you.i live in florida and they are sue happy here! icon_redface.gif

Erdica Cake Central Cake Decorator Profile
Erdica Posted 22 Sep 2007 , 2:16pm
post #13 of 15

I think it's sad how people will sue for every little thing. I guess that's the world we've come to live in.

Carolynlovescake Cake Central Cake Decorator Profile
Carolynlovescake Posted 22 Sep 2007 , 6:07pm
post #14 of 15
Quote:
Originally Posted by Erdica

I've never really thought about insurance.

Do you get insurance so someone can't sue you? Like if someone gets sick or something?





I have to have insurance because I am not a hobby baker. I am in the process of becoming a licensed Domestic kitchen.

People can and will sue for a variety of reasons:

Frivilous reasons my friends in California were sued for at their shop:

Spoiled food - The cake was sitting in the sun for 12 hours. It had sour cream, milk, and eggs and a few other ingredients that spoil easily used in the cake and/or frosting. Obviously the heat and elements of nature (direct sun) caused the spoiling process to advance quickly. The person who picked it up signed a disclaimer stating they were aware of the ingredients listed on the box and that extreme heat could cause it to spoil. Good old Uncle Joe wouldn't stop eating it because it was so good and ended up with food poisoning (as well as the side effects of over indulgence). He got $10,000 from the insurance company.

Non Edible item in a fondant creation: There were caution signs posted saying "please do not eat the decorative images on this cake, they contain non edible items to hold them together. Mr. Idiot swiped one when they were not looking and popped it in his mouth and you guessed it, a toothpick imbedded into the roof of his mouth. He did admit to reading the signs but ignored them and sued anyway. Settlement..... $25,000.

Food allergy: Mrs. Idiot allowed her son to eat cake while having a severe allergy to milk. The shop made a small 4 inch cake for he and another child that was allergy free. The kid was mad because it wasn't as cool as the birthday cake itself and threw a fit. His mom who was there allowed him to eat a 2x4 piece of the cake. (Whole milk in both the cake batter AND frosting). Yup you guessed it... settlement $3,000 plus medical bills.

Since my business is based out of my home I can be sued for every penny I am worth. Assets include my home, my TV, our computers etc.


With out business insurance there could be a variety of problems:

a) If I loose my home in a fire or another disaster, my baking supplies are not covered by homeowners insurance since I am a licensed business. Business insurance will cover replacement of everything I need to get operational again.

b) With out business insurance If I am sued they can sue me for my home and it's value. If I loose I am homeless. Homeowners insurance does not cover any lawsuits from business related incidents.

c) Accidents on my property. If someone is carrying a cake out to their car, trips and falls and breaks an arm my homeowners insurance does not cover it. Business insurance will.

State Farm was very clear that I MUST have business insurance for the business portion of my home or my policy will be cancelled if they find out.

Another thing I can do is homestead my home with the county (which I am doing). That automatically protects me and insures that my home can not be used as an assett of my business. It insures me that if I loose a lawsuit my home can be put up for a forced sale to pay the judgement against me.

I have also decided to be a LLC. (Limited Liability Corp) Anyone who wants to sue me can only sue me for my business assetts. They can't say "well her house is 300K so let's go for that." The LLC allows me to keep my home/personal assetts and by business assetts seperate. If sued it is like my personal assetts do not exist.

ThatsHowTcakesRolls Cake Central Cake Decorator Profile
ThatsHowTcakesRolls Posted 23 Sep 2007 , 12:41am
post #15 of 15

My insurance cost me $334 for $1,000,000 liability policy. This also allows me to participate in events. Most venues require you to carry your own insurance for public events so this covers me. I thought it was pretty reasonable but I can't say that I was smart and shopped around. I actually used the same insurance company that we have for our cars & houses.

It covers all the worries of if someone gets sick and also covers theft & damage to property.

Quote by @%username% on %date%

%body%