Your cake and candy decorating supply store is a one-stop shop for home-based and professional bakers to load up on all the supplies they need to decorate their candy, cookies, cakes, and other sweet treats.
With your extensive selection of candy, cake, and cookie decorating supplies including ingredients, molds, tools, toppers, chocolate and sugar accents, fondants, specialty trays, and so much more, your customers can mold, cast, and decorate the cakes and candies of their dreams.
While your products are designed to produce edible artistic masterpieces, owning your store is not all fun and games. You need to carefully protect your livelihood from all of the little things and big things that can go wrong.
With the right business insurance tailored for your cake and candy decorating supply store, you can put your mind at ease and focus on what’s important.
Whether you own a single store or a chain, an independent insurance agent in your city can help you find tailored coverage that protects your assets.
Why Do I Need Cake and Candy Decorating Supply Store Insurance?
Safety concerns, business interruptions, property damage, and lawsuits can have enormous consequences for any retail store owner. Consider how the following types of events could lead to devastating financial losses for your cake and candy decorating supply store:
- Accidents such as trips and falls in the store or parking lot
- Shopping carts or store fixtures causing injury or property damage in the store or parking lot
- Damage to your building and inventory due to some catastrophic or unexpected event (e.g., fire, smoke, or severe weather)
- Loss of income due to a catastrophic or unexpected event
- Equipment damage or breakdown
- Employee theft of cash or inventory
- Shoplifting and vandalism
- Selling faulty products (e.g., toxic or tainted edible cake decorations)
- Employee lawsuits related to discrimination or other claims
- Cyber breaches
All of these risks can lead to losses with a hefty price tag. You need a comprehensive set of retail store business insurance polices that address these risks and more, depending on the unique needs of your business.
Property Insurance for Cake and Candy Decorating Supply Stores
Cake and candy decorating supply stores need property insurance that offers financial protection when you experience physical damage to your building or property and everything that’s inside including your inventory, store fixtures, computers, and more.
If you experience a fire, vandalism, or severe weather that damage your cake and candy decorating supply store, you need property insurance to help you pay for repairing and replacing damaged property.
- Commercial property insurance protects your building and other business property in the event of a covered loss. It provides coverage for lost inventory, equipment and machinery, office space, office equipment, computers, store shelving, display cases, and more.
Often when you experience a property loss, you’ll also have a resulting loss of income if your inventory is damaged or destroyed or if you cannot continue to operate while you make repairs to your building, computer systems, or other equipment.
- Business interruption coverage, or business income coverage, protects your earnings if your business is unable to operate because of damage caused by some type of covered disruption (fire, tornado, etc.).
This coverage is invaluable if you are forced to close your doors for some time in order to make repairs. It helps you pay for fixed expenses like rent, employee salaries, lost income, relocation fees, and more.
Liability Coverage for Cake and Candy Decorating Supply Stores
You can protect your business, your employees, and the general public from the costs associated with injuries and property damage that are caused by coming into contact with your business or your products.
- Commercial general liability (CGL) insurance protects you from outside claims of property damage or injury. If a customer sustains a serious cut or a burn during a decorating class on your premises or if a supplier trips on an upturned rug and breaks their ankle, this policy pays for medical bills and other expenses related to the incident. It also pays for your defense and judgments or settlements if you are sued.
Your CGL policy provides broad coverage for a wide range of liability claims. But some types of claims are excluded from coverage or are not sufficiently covered by a general liability policy. You'll likely need some additional types of liability insurance including:
- Commercial umbrella insurance provides excess liability protection to any of several other policies you might have. If a customer injury in your store leads to an expensive lawsuit that exceeds the limits of your CGL policy, your commercial umbrella policy kicks in with higher coverage limits.
- Commercial auto insurance ensures that you’ll be able to pay for any physical damage or injuries you cause if you are in an auto accident while driving for business purposes. If you deliver to customers using a business-owned vehicle or if you simply run business-related errands using a personal vehicle, you need commercial auto insurance.
- Employment practices liability insurance covers you if an employee sues you for discriminatory employment practices.
- Cyber liability insurance is important for any business that uses, transmits, or stores electronic data. If you sell decorating supplies online in addition to your brick-and-mortar store, this coverage becomes essential. It pays for any costs related to a cyber breach as well as any related legal costs if a customer or supplier who was harmed by the breach sues you.
Other Coverage To Consider
You might also want to consider certain endorsements (coverage add-ons) to your basic cake and candy decorating supply store insurance policies. Or in some circumstances you may need to purchase additional stand-alone policies that provide the following types of coverage:
- Workers’ compensation insurance is typically required for any business that has employees, and pays for lost income and medical expenses for employees who are injured on the job. If a cashier, stock person, store manager, or any other type of employee is injured while lifting heavy boxes, slipping on a wet floor, or falling off of a ladder, workers’ compensation insurance pays for related medical costs and compensates them for time away from work.
- Crime coverage protects your business if an employee or a group of employees engage in theft, forgery, or fraud that damages your business. This coverage also protects you from the costs associated with shoplifting and vandalism.
- 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.
The Importance of Product Liability Insurance
Cake and candy decorating supply stores sell all kinds of products to the general public from molds, tools, and trays to edible ingredients, accents, and toppers.
While you may make great efforts to ensure that your products are nontoxic, food safe, and FDA approved, you can't control the manufacturing process or even what happens to a product while it is being transported to your store.
You probably purchase your inventory from a variety of suppliers and manufacturers, but you don't need to manufacture a product to be considered liable if the product causes some type of property damage, illness, or injury to a customer or bystander.
If any product that you sell is faulty and leads to an injury or death, your business could be sued for negligence. Imagine that you sell a cake topper that presents a choking hazard to children but it is not labeled as such, and children are injured as a result.
Or perhaps you sell edible decorations that include an unlabeled allergen, and someone becomes sick as a result.
Product liability insurance covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a product purchased in your store.
If you are sued in such a case, the resulting payouts for medical costs, compensatory damages, economic damage, attorney fees, court costs, and even punitive damages can be insurmountable for a small business.
Talk to your independent insurance agent about your need for product liability insurance.
How Much Does Cake and Candy Decorating Supply Store Insurance Cost?
A single-location cake and candy decorating supply store might spend around $500 to $1,500 per year on general liability coverage alone.
But this is a broad estimate and does not include property coverage and any other types of policies or endorsements that you might need to fully cover your risks.
In addition, a variety of individual risk factors will influence how much you pay to cover your store. These include the location of your store, the number of employees you have, and the coverage limits and deductibles that you choose.
Some small business owners can get the best rates by purchasing a business owners policy (BOP), which combines commercial liability insurance, commercial property insurance, and business interruption coverage into one affordable and efficient package policy. Other coverage can be added on to complete your comprehensive business insurance program.
Find and Compare Quotes
An independent insurance 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
Our agents simplify the search process for finding the right cake and candy decorating supply store insurance. They’ll walk you through some handpicked policy options and explain the details and options.
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 omit 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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