Wholesale Bakery Insurance

Your Guide to Wholesale Bakery Insurance

Why cookie-cutter coverage just won't work.

Wholesale Bakery Insurance

The wholesale bakery industry consists of establishments that are primarily engaged in manufacturing fresh and frozen bread and bread-type rolls and other fresh bakery products.

Whether it is dangers to the general public or your employees, or unforeseen events like fires, storms, and theft, your wholesale bakery is exposed to numerous risks that can lead to costly losses. You need a trusted advisor who can help you find the best business insurance coverage to protect your livelihood from the many potential and costly problems that can arise.

An independent insurance agent will get to know you and your business. Your agent can work with multiple reputable companies who specialize in wholesale bakery insurance.

Why Do You Need Wholesale Bakery Insurance?

Wholesale bakeries sell breads, rolls, and other bakery products in bulk to restaurants, grocery stores, and other establishments like coffee shops.

These businesses may operate with or without a storefront, and typically offer deliveries to their customers seven days a week. If you operate a wholesale bakery, you likely employ experienced bakery staff as well as customer service representatives and drivers.

Your bakery is fitted with expensive ovens and other custom equipment, as well as office equipment, computers, and other commercial property.

Risks are present at your bakery that can destroy your property, contaminate your product, and cost you time and money. Imagine the impact of spoilage, supply shortages, equipment breakdowns, and product recalls on your ability to operate, earn revenue, and pay your bills. And if something like a tornado or fire destroyed your bakery, how would you rebuild and continue to operate?

Wholesale bakery insurance is your first line of defense in these situations. It can protect you in the following ways.

  • It can help you pay for repairing or replacing damaged property.
  • It can help you cover expenses during a temporary closure.
  • It can help you pay for defense costs and damages if you are sued.
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Why Do Wholesale Bakeries Need Liability Insurance? 

Wholesale bakeries are vulnerable to lawsuits related to products that are contaminated or determined to be harmful in some way. What’s more, if a product is contaminated, mislabeled, or determined to be unsafe, it may have to be recalled—a costly and damaging process that may haunt your company for years.

The right business insurance can protect wholesale bakeries from these kinds of claims and especially if they are sued. A few insurance policies can be the difference between recovering financially after a lawsuit or product recall, and being forced to close to your doors.

  • Commercial general liability insurance: This is necessary for occasions in which your business is careless and causes bodily injury or property damage. It provides coverage if someone is injured on your premises (if you have a storefront), as well as claims of advertising or copyright infringement, libel, slander, and false advertising. It would respond to claims of mislabeling (e.g., a “gluten free” product actually contains gluten), making false health claims (e.g., “low fat cookies can help you lose weight”), or any time when a person is injured at or because of your business.
  • Product liability insurance: This covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of your product. If you are sued because tainted croissants make someone sick, you may be required to pay for medical costs, compensatory damages, economic damages, attorney fees, and court costs, and more.
  • Product recall insurance: This covers the costs associated with a product recall. If a product is contaminated and must be removed from the market, your product recall insurance will cover product removal and disposal costs, loss of profit, product replacement, and public relations and communications costs.

Wholesale Bakery Property Insurance Protects Buildings and Equipment

Commercial property insurance helps protect your commercial bakery (your building) and its contents, (e.g., commercial ovens, mixers, cutting machines, office furniture, cooling racks, etc.) in the event of a fire, a severe weather event, theft, vandalism, and other covered perils.

In addition, you may need various other types of property coverage.

  • Business interruption coverage: This protects your earnings if your business is unable to operate because you must rebuild, make repairs, or replace equipment after a fire, hail, a windstorm, equipment breakdown, etc. If your revenue stream decreases or completely stops during this period, this coverage helps you pay for rent, employee salaries, lost income, relocation fees, and more.
  • Utility interruption coverage: This reimburses you for costs related to breakdowns in utility services (water, electrical) that force you to temporarily stop production.
  • Equipment breakdown coverage: This helps you repair or replace damaged baking equipment that is essential to keeping your bakery up and running.
  • Cargo and goods-in-transit coverage, including ocean marine coverage and/or inland marine coverage: This protects your products as they are transported from place to place.
  • Spoilage coverage: This offers financial protection for the costs of goods that spoil onsite.
  • Additional flood, windstorm, or earthquake coverage: This may be necessary to protect your business property, depending upon your location.

Other Important Wholesale Bakery Insurance Policies

Your obligation to protect your customers, suppliers, and the general public does not end with basic property and liability insurance. You may need additional commercial bakery insurance to fully cover your risks.

  • Environmental liability coverage: This protects businesses from the costs associated with damage caused by improperly disposing hazardous waste or causing environmental harm.
  • Commercial auto coverage: This is necessary to protect your delivery vehicles and drivers. It provides liability protection for your business if one of your drivers is responsible for an accident. You can also purchase coverage that helps you pay to repair or replace your own vehicles if they’re damaged in an accident or by some other type of event (e.g., a fallen tree, hail, etc.).
  • Commercial umbrella coverage: This provides liability protection above and beyond the liability coverage included in a commercial general liability and business auto policy. A commercial umbrella policy would pay when your other liability coverage has been exhausted.

Workers' Compensation Insurance Is Important for Wholesale Bakeries

Wholesale bakeries rely on fast-moving, complex machines and equipment that must be operated with great skill and care. Cuts, burns, back strain, repetitive motion injuries, and other types of injuries are possible in your work environment.

In addition to teaching employees how to safely operate your commercial baking equipment and to always follow safety procedures, you must provide workers’ compensation insurance.

Workers’ compensation insurance protects you and your employees from the costs of workplaces injuries and illnesses. It pays for medical bills and lost wages if someone is injured on the job, regardless of who is at fault.

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How Much Does Wholesale Bakery Insurance Cost?

Your commercial bakery insurance cost depends on several factors, including the size of your business and the types of policies you need to cover your unique risks.

Here are some other variables that can impact the cost of business insurance.

  • Number of employees
  • The value of your equipment and other commercial property
  • Size and location of your building
  • Volume and geographical distribution of your products

Benefits of an Independent Agent

You may have some things in common with other businesses, but in many ways your business is unique. Don’t trust your livelihood to a faceless online quote or an insurance company representative who doesn’t know the ins and outs of your business. A local, independent insurance agent will get to know you and your business.

Independent agents can work with numerous, reputable insurance companies who specialize in your type of business. Together you can review a variety of proposals and choose the best mix of coverage that meets your needs and budget.

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Find and Compare Quotes for Wholesale Bakery Insurance

Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.

Your agent will work with you free of charge to get quotes from multiple insurance companies so you can make the best choice.

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TrustedChoice.com Article | Reviewed by Paul Martin

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