What Kind Of Insurance Do I Need? Unique Situation

Business By littlelucy30 Updated 4 Feb 2010 , 9:33pm by johnson6ofus

littlelucy30 Cake Central Cake Decorator Profile
littlelucy30 Posted 4 Feb 2010 , 1:50pm
post #1 of 7

I'm starting a home based bakery business and I'm looking at insurance. My situation is a bit unique in that I'm not doing it from my primary residence but a rental home. I've read that several other home bakers have an additional rider on their homeowner's policy for liability for the business. So should I get a rental policy? A business policy? A personal liability policy? Any advice will be greatly appreciated.

6 replies
Moofiebonbon Cake Central Cake Decorator Profile
Moofiebonbon Posted 4 Feb 2010 , 2:27pm
post #2 of 7

Do you currently have insurance on your "contents" of the rental unit? If so, contact your insurance agent and explain it to them. I am not really sure what you would do.
On another note, if you do not have a renters policy, you should seriously consider that. Although I own, I know that in my area renters are not covered by the owners policy- so in a disaster, if one does not have a "renters" policy, they are SOL. It is my understanding that a policy is not too expensive.
Sorry I could not be more help- Good luck!

deb12g Cake Central Cake Decorator Profile
deb12g Posted 4 Feb 2010 , 3:39pm
post #3 of 7

My policy is a liability policy ( I do catering also). It covers damages I may cause in any facility where I am working. I pay $250/yr. for $2million coverage.

tracycakes Cake Central Cake Decorator Profile
tracycakes Posted 4 Feb 2010 , 4:01pm
post #4 of 7

I would talk to my insurance agent also. They would probably be most knowledgable.

saffronica Cake Central Cake Decorator Profile
saffronica Posted 4 Feb 2010 , 4:33pm
post #5 of 7

If you haven't already, you should also check your rental agreement; your landlord might not allow you to run a business from your home. S/he might make an exception if you go about it the right way, but it would be a shame to get everything else legal and set up and then have your landlord throw a fit over it.

littlelucy30 Cake Central Cake Decorator Profile
littlelucy30 Posted 4 Feb 2010 , 5:51pm
post #6 of 7

Thanks for your responses. I plan to call my agent tomorrow. I just wanted to see what you guys had.
I do have permission from the owner for the business. He's giving me a reduced rent because basically I'm just using the kitchen, bathroom and part of the living room. He also bought a huge new fridge. icon_biggrin.gif

johnson6ofus Cake Central Cake Decorator Profile
johnson6ofus Posted 4 Feb 2010 , 9:33pm
post #7 of 7

Two types of insurance here... the "stuff" and the "liability".

Do you want to insure your equipment in case of fire or theft, or lose of use of the building in case of damage? Then you need contents/ renters coverage.

To insure yourself against a judgment for food poisoning,or "I slipped on your icing dropped here", etc... that is a liability policy.

Quote by @%username% on %date%