Baked ham stores are primarily engaged in selling prebaked hams and turkey breasts that are not for consumption on the premises. Customers typically order hams to their specifications in advance. The hams are then prepared and fully cooked on the premises, with instructions given to the customer on how to rewarm the ham for serving.
Many baked ham stores also offer a variety of other premade foods for sale, such as side dishes and desserts, to complement the hams.
If you own a baked ham store, your goal is to help your customers serve easy and delicious meals without the fuss of preparing them at home.
But while you focus on offering delicious ham and other foods, things can go wrong that can set your business back. As a small business owner, you need to protect your investment in your baked ham store with a comprehensive set of business insurance policies that are tailored to the unique risks you face.
A local independent insurance agent can help you find the customized, affordable baked ham store insurance that fits your needs and budget.
Why Do You Need Baked Ham Store Insurance?
Your food inventory, ingredients, and supplies—as well as your store fixtures, shelving, computers, furniture, and more—are valuable. What if a fire, a severe weather event, or a burglary destroyed part, or all, of your store?
Baked ham store insurance protects your physical assets when something unexpected happens. You’ll probably face a mountain of repair costs, and you might even have to close temporarily while you replace inventory, rebuild your damaged store, or wait for equipment to be fixed.
Another major threat to your store: being sued by a customer or someone else because of a negligent act.
Something as simple as a customer slipping on a wet floor while picking up a ham can quickly spiral out of control. You can always expect to pay the related medical expenses for anyone who is injured in your store. What’s more, simple slip-and-fall cases often lead to lawsuits, and you’ll need a way to pay for your legal expenses and any payouts to an injured party.
And even worse, what if you sell a ham or many hams that are the source of a foodborne illness? Situations like these can lead to not just one but a whole slew of lawsuits, and devastating legal costs that could bankrupt you if you don’t have appropriate insurance coverage.
Baked ham store insurance helps you in situations like these—and many more—that might otherwise force you out of business.
What Does Baked Ham Store Property Insurance Cover?
Unexpected events such as fires, natural disasters, floods, and extreme weather events can happen at any time, and they can quickly cause massive damage to your building, inventory, fixtures, computers, office files, and more.
Commercial property insurance covers the costs of repairing or replacing damaged or destroyed physical assets. This coverage is essential to securing your ability to operate in the face of disaster.
Business interruption insurance complements your baked ham store property coverage. It offers income replacement if your business is unable to operate because of damage caused by some type of covered disruption. You’ll be able to pay for rent, employee, salaries, and utility bills while your revenue is limited, so you don’t have to close your doors for good.
Equipment breakdown coverage (often called boiler and machinery coverage) is one of the most important types of insurance to consider for your baked ham store. It covers the cost of repairing or replacing machinery or equipment used in your meat market, including ovens, freezers, refrigerators, air conditioners, furnaces, and point-of-sale equipment.
What Does Baked Ham Store Liability Insurance Cover?
Customers, vendors, and members of the general public visit your baked ham store during every business day. Any one of these individuals can get injured on your premises at any time. Slips, trips, falls, and other types of injuries are common in retail settings.
Medical bills and other related expenses are a lot to cover for a small business. And they’re just the tip of the iceberg if you are sued in such a situation. Attorney fees, court costs, and court-ordered settlements or judgments can easily bankrupt you.
Commercial general liability (CGL) insurance is your next line of defense in protecting your baked ham store from costly problems. It protects your business when you are considered to be negligent or blamed for causing harm to an individual or another business.
There are two types of basic coverage included in a CGL policy:
- Premises liability coverage pays for damage and legal expenses if a customer or some other visitor in your meat market is injured or experiences some type of property damage.
- Product liability coverage protects you if the products that you sell in your store cause an illness or an injury. Imagine the consequences if one of your hams or side dishes were the source of an E. coli outbreak. Or what if a foreign substance (metal, plastic) is found in tray of mac and cheese from your store and it injures a customer. If someone files a claim or if you are sued, your product liability coverage pays for damages to the injured parties as well as your legal costs.
General liability insurance also provides coverage for advertising liability, slander, and libel claims against your baked ham store.
Do Franchisees Need Special Insurance?
You’ll need to purchase your business insurance on your own, whether you’re an independent baked ham store owner or a franchisee.
Why? First, every state and municipality has different regulations regarding insurance. A franchisor couldn’t possibly provide compliant business insurance for all of its franchisees. What’s more, while the franchisor plays a role in your business, it has no control over your day-to-day operations, employees, or any other factors that could lead to liability claims. The franchisor cannot purchase business insurance for you or on your behalf.
But that doesn’t mean that the franchisor has no involvement in your business insurance purchase. Most franchisors will require franchisees to purchase certain types of business insurance, or franchise insurance, in order to comply with the franchise agreement.
If you’re a franchisee, you're likely to be required to name the franchisor as an additional named insured on your franchise insurance, to ensure that the franchisor is protected from any claims against your shop.
What Is Contamination and Spoilage Coverage?
Food spoilage and contamination is likely to be one of your biggest concerns as a baked ham store owner. Any business that is responsible for an outbreak of foodborne illnesses can face devastating costs and can quickly be forced to shut down.
Food spoilage and contamination can happen in a variety of ways, even if you operate a very clean kitchen and take food safety very seriously. Your refrigerator can break down, causing everything inside to become spoiled and ruined. You can unknowingly receive tainted food from an outside source and serve it to your customers.
Contamination and spoilage coverage pays for certain losses if food products are spoiled or contaminated due to refrigeration breakdown, utility interruption, or some other type of foreign substance contamination.
If your local board of health or another agency forces you to close because of food contamination, your contamination and spoilage insurance may cover you for lost income during the shutdown period, as well as costs related to cleaning contaminated equipment, and disposing of and replacing spoiled food.
Keep in mind that your contamination and spoilage insurance does not cover liability claims related to any illnesses or injuries caused by spoiled or contaminated food. If you are sued after someone becomes ill, the product liability portion of your general liability policy responds and pays for medical expenses, attorney fees, and any financial settlements that you’re required to pay to the injured party.
An independent insurance agent might suggest that you purchase extended product liability protection beyond what is offered in your general liability policy
Other Baked Ham Store Insurance Options
Aside from major property and liability risks, baked ham stores are likely to need several other insurance policies to protect them from financial harm and unexpected events. Talk to your independent insurance agent about whether you need the following:
- Commercial auto insurance protects any business-owned vehicles or trucks. In addition, if employees drive personal vehicles for business use, you need hired and non-owned auto liability insurance.
- Crime coverage pays for loss of inventory due to theft of merchandise from shoplifting, and even for loss of money and merchandise stolen by employees.
- Workers’ compensation insurance is required for almost every business that has employees. It compensates employees who are injured on the job by paying for medical expenses and lost wages related to their injury. Your employees can sustain cuts, burns, back strains, and repetitive motion injuries. This coverage ensures that their expenses will be covered in these cases, and prevents them from suing you for additional damages.
- Cyber liability insurance protects your store if you are the victim of a cyber breach. If your computer systems were hacked and sensitive customer information were accessed, this coverage would help you pay for the fallout.
- Employment practices liability coverage protects you if a current or former employee sues you for discriminatory employment practices.
- Commercial umbrella insurance provides an important safety net for cases when a claim exceeds the coverage limit on your general liability policy. If you were hit with an extremely costly lawsuit, this policy would kick in when the coverage on your general liability policy was exhausted.
- Sign coverage pays for damage to outdoor signs that are not attached to your building that is caused by vandalism, theft, weather, or accidents.
- Utility interruption coverage provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
- Flood insurance and earthquake insurance may be necessary if your baked ham store is in an area that is prone to these natural disasters. Talk to your independent insurance agent about your need for this type of coverage.
How Much Does Baked Ham Store Insurance Cost?
The size of your business and the types of policies you need to cover your unique risks are the biggest predictors of how much your business insurance will cost. A variety of variables that are unique to your business help determine how risky you are to insure, and consequently how costly your insurance will be.
To determine the types and amounts of coverage that you need, your insurance agent will evaluate several factors, such as:
- Number of employees
- Size and location of your store
- Amount and value of your inventory
- Whether you own your building
These factors indicate how risky your business is, and how much it will cost to insure it.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Insurance Agent
Independent insurance agents simplify the search process for finding the right baked ham store insurance. They’ll walk you through some handpicked policy options and explain the details.
Most importantly, they’ll 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.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
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.
TrustedChoice.com Article | Reviewed by Paul Martin
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