Take-and-bake pizza shops prepare premade and made-to-order pizzas that are not eaten at the shop, but rather are taken from the store and baked at home. These stores prepare but do not cook food on the premises, and they do not offer an eat-in option for their customers.
Take-and-bake pizza shops are quite popular, and face a variety of unique risks. In addition to risks that are similar to any retail establishment, take-and-bake pizza shops have some increased risk related to storing, handling, and selling food.
Whether you are an independent owner or a franchisee, you can find the best way to insure your take-and-bake pizza shop with a comprehensive set of business insurance policies that are tailored to your unique risks. Talk to a local independent insurance agent who can help you find multiple quotes for coverage.
Why Do You Need Take-and-Bake Pizza Shop Insurance?
What would happen if a customer had an allergic reaction to a pizza purchased in your store? What if a customer got sick from eating tainted or contaminated pizza from your shop?
What if a customer slipped on a wet floor in your store, fell, and broke an ankle?
What if you had a fire on your premises that destroyed all of your inventory, shelves, fixtures, computers, and your cash registers?
What if your refrigeration equipment broke down, spoiling your entire food inventory?
Like any small business owner, you need business insurance to protect your investment when the unexpected happens. You need protection when you sustain a property loss after a fire, a severe storm, or a break-in. And you need additional protection in the event that someone is injured on your premises or as a result of consuming food purchased at your pizza shop.
Here are just a few things that can go wrong that should be addressed with take-and-bake pizza shop insurance:
- A customer or supplier slips and falls in your shop.
- A customer becomes ill after eating tainted or contaminated food.
- Guests in your shop damage furniture, bathrooms, display cases, or equipment.
- Inventory is contaminated or spoiled.
- Employee injuries.
- Fire, extreme weather, or a natural disaster.
- Theft or vandalism by customers or employees.
Do Franchisees Need Take-and-Bake Pizza Shop Insurance?
You’ll need to purchase your business insurance on your own, whether you’re an independent 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’ll probably 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 Does Property Insurance Cover?
Your physical assets are the first things you need to protect with your take-and-bake pizza shop insurance. There are several types of business insurance policies that cover your commercial property.
- Covers your building (if you own it), as well as its contents, including all of your furniture, computers, office furniture and supplies, inventory, paper products, and indoor signage.
- Responds when there is a fire, storm, theft, or vandalism in your store and your commercial property is damaged or destroyed.
- Example: if a fire damaged your stockroom and all of your office equipment, inventory, and supplies, commercial property coverage would pay for repairing and replacing the damaged property.
- Part of your commercial property insurance.
- Pays for loss of income and certain fixed expenses (e.g., rent, salaries, temporary relocation expenses, etc.) if your business must close due to a covered loss.
- Example: If your business had to close to make repairs to the roof after a storm, business interruption insurance would help you pay for lost income while you had to close during repairs. It would also pay for rent, employee salaries, and utility bills while your revenue is limited.
Employee Dishonesty and Crime Coverage
- Protects your store if an employee or a group of employees engage in theft, forgery, or fraud that damages your business.
- Also offers coverage in cases of shoplifting and vandalism.
- Example: If cash is stolen from your cash register—either by an outsider or an employee—your crime coverage reimburses you for your losses.
What Does Liability Insurance Cover?
Liability insurance is your next line of defense in protecting your take-and-bake pizza shop 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.
- Commercial general liability (CGL) insurance protects your business from claims that occur while customers are on your premises. It also covers bodily injury and property damage to others due to negligence by you or an employee.
- Also provides coverage for product liability, advertising liability, slander, and libel claims against your take-and-bake pizza shop.
- Example: If a guest has an allergic reaction to a pizza purchased at your shop because it was not properly labeled, your general liability policy pays for direct costs (medical bills, etc.) as well as attorney fees, court costs, settlements, and judgments if you are sued.
- Example: If a passerby comes in to use your restroom and slips on a wet floor, breaking an ankle, your general liability policy responds to any claim for damages.
- Example: If a guest becomes ill from eating a pizza containing a spoiled or contaminated ingredient, even if the contamination occurred at the food supplier, your general liability insurance will cover the resulting financial losses (medical expenses, legal expenses).
What Is Contamination and Spoilage Coverage?
Food spoilage and contamination is likely to be one of your biggest concerns as a take-and-bake pizza shop 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. Bacteria can be spread to surfaces and other food during handling.
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 Insurance Policies for Your Take-and-Bake Pizza Shop
You're likely to need several other insurance policies to protect you from financial harm and unexpected events. Talk to your independent insurance agent about your need for the following.
- Commercial auto insurance provides auto liability coverage (pays for injuries and vehicle damage for others if one of your drivers causes an accident) for your business-owned vehicles. It also provides comprehensive coverage, collision coverage, and other optional coverage that helps you pay for damage to your own vehicle fleet.
- Workers’ compensation insurance is required for any business that has employees. It protects your workers (including store managers, cashiers, and pizza-makers) from the costs of work-related injuries and illnesses. This coverage pays for medical bills and lost wages for employees who sustain cuts, burns, slip-and-fall injuries, repetitive motion injuries, or any other injuries or illnesses related to their work.
- Cyber liability insurance protects your take-and-bake pizza shop if you are the victim of a cyber breach, such as hacking of your website or theft and exposure of confidential customer or vendor information.
- Employment practices liability coverage protects you if a current or former employee sues you for discriminatory employment practices.
How Much Does Take-and-Bake Pizza Shop Insurance Cost?
The cost of take-and-bake pizza shop insurance depends on the policies you choose, the unique risks your business faces, the value of your inventory and equipment, and other factors like your location, number of employees, and the size of your establishment.
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 Agent
Independent insurance agents simplify the search process for finding the right take-and-bake pizza shop 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.