How much does business insurance cost for bakeries?

Bakery owners pay an average of about $67 per month, or $802 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to protect against common third-party risks, as well as your bakery equipment. It typically costs less than purchasing each policy separately.

A BOP covers customer injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.

This is the average policy for bakery professionals who buy from Insureon:

Insurance premium: $67 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk bakery businesses are often eligible for a business owner's policy.

Bakery owners and other food service businesses may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help avoid spoilage and financial losses if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on a number of factors, including the value of your property, where you are located, and the number of employees you have.

Bakery businesses pay an average of $37 per month, or $446 per year, for general liability insurance (sometimes called public liability insurance).

General liability insurance covers common bakery risks, including third-party property damage and bodily injury. For example, if a baker accidentally breaks a client's dessert dish while preparing an order, a general liability policy would cover any resulting legal costs.

It also helps pay for legal fees if someone sues your business over copyright infringement or advertising injuries, including defamation.

Some bakery companies may need proof of general liability insurance to sign a commercial lease or secure a client contract.

Below is the average policy for bakery businesses that buy from Insureon:

Premium: $37 per month
Policy limits: $1 million per occurrence; $2 million aggregate 

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the size of your business, your business income, the amount of foot traffic you have, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

The average cost for workers’ compensation insurance for bakery professionals is $128 per month, or $1,541 annually.

A workers’ compensation policy covers medical bills and lost income if you or an employee gets injured or ill on the job, such as a baker who cuts themselves with a sharp knife and needs urgent care. Businesses that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties.

Workers' comp state laws vary and your specific requirements will depend on the state you live in. For example, all bakeries are required to carry a workers' compensation policy in California if they have one or more employees. However, coverage is optional in Texas.

Most policies include employer’s liability insurance, which protects bakery owners against lawsuits related to workplace injuries.

Since health insurance plans can deny claims for injuries related to your job, workers' compensation coverage is also recommended for sole proprietors as a financial safety net and for extra peace of mind.

The cost of workers' comp depends on several factors, primarily your number of employees and their occupational risks. You can save money on your workers' comp coverage by classifying your workers correctly and implementing a risk management plan to minimize employee injuries.

Bakery companies pay an average of $160 per month, or $1,923 per year, for commercial auto insurance.

This type of business insurance pays for property damage and medical expenses from accidents involving your company vehicles, such as your business-owned vans. It can also cover vehicle theft, vandalism, and weather damage.

Most states require this type of insurance for vehicles owned by your bakery business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on several factors, including the policy limits you choose, claims history, the number and value of your vehicles, and the driving records of anyone permitted to drive. Learn how insurers calculate your premium and how to save money on commercial auto coverage.

Small businesses pay an average of $145 per month, or $1,740 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps bakeries recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other costs necessitated by state data breach laws.

The cost of cyber insurance depends on the amount of personal information handled by your bakery, such as customer credit card numbers, along with the number of employees who can access that information.