Choosing the right bakery insurance

The right bakery insurance needs some icing on the cake to cover all aspects of the business.

Two key factors are quickly repairing or replacing ovens that break down and making sure that deliveries are maintained so stock that can quickly deteriorate gets out to customers.

Bakery insurance covers other areas that are common to other businesses – liability, business interruption, vehicles, buildings and contents.


Bakers need public liability cover for any legal expenses or compensation relating to incidents leading to the sickness or injury to clients and any visitors to the premises.

Any business dealing with fresh foodstuffs is susceptible to this kind of complaint that can affect finances as well as reputation.

As most bakeries employee staff to make and deliver products, they need employer liability insurance by law.

This extends the same cover as public liability insurance to employees.

Read more about bakery liability cover

Business interruption

Business interruption safeguards profits when an office cannot open for business – for instance, after a fire, flood or a break-in.

Read more about bakery business interruption cover

Buildings insurance

Bakery owners should take out this cover, but if the bakery is in rented premises the landlord should have their own policy.

Add-ons to standard buildings cover can include:

• Property owner liability – Extra protection if a passer-by is injured due to an issue with the bakery – like a slates or signage falling on them

Read more about bakery buildings insurance

Contents insurance

Bakers also need offices, raw materials and administrators. Contents insurance covers stock, computers, business records, machinery and equipment the bakery needs to operate.

Add-ons to standard contents insurance can include:

• Money cover – Compensation for stolen cash, gift tokens, stamps, cheques or postal orders

• Stolen key replacement – Pays for new locks and keys to secure the office from burglars


Bakeries with delivery vehicles should not only have van or lorry insurance, but goods-in-transit cover that replaces the cost of any stock or raw materials damaged in transit

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