What is insurance for home bakers?
Home bakery insurance is designed to cover the unique risks faced by bakers who run their businesses from home. It typically includes public liability insurance, business equipment cover, and optional extras like employers’ liability insurance if you have people working with you. This type of insurance ensures that unexpected events, from customer claims to equipment damage, don’t leave you out of pocket.
Do home bakers need insurance?
While insurance isn’t a legal requirement for home bakers, it’s often necessary to operate smoothly. Many venues, events, and markets require proof of public liability insurance before allowing you to trade.
Plus, having insurance means you're protected if something goes wrong, whether that’s a customer reaction to an ingredient or damage caused at a pop-up stall.
Public liability insurance for home bakers
Public liability insurance for home bakers covers claims made by third parties for injury or property damage. For example, if a customer has an allergic reaction to a cake despite clear labelling, they could take legal action.
Likewise, if you're selling at a market and your stall setup causes someone to trip and fall, you could be held liable. This cover helps manage legal costs and compensation, ensuring your business isn’t financially impacted.
Business equipment insurance
Your baking equipment is key to keeping your business running. Business equipment insurance covers essential tools, from mixers to ovens, against theft, loss, or malicious damage. If you take your equipment to pop-ups, markets, or catering events, portable equipment cover ensures you're protected even when working away from home.
What else to include with home baking insurance?
If you use anyone to help with your home bakery or worry about unpaid invoices, you may wish to consider the following to stay compliant and protect your business:
Employers' liability insurance
If you hire freelancers, helpers, apprentices, or any staff members, even on a casual basis, you’re legally required to have employers’ liability insurance. This cover protects your business if an employee suffers an injury or illness as a result of their work.
Commercial legal expenses
Legal disputes can arise in any business. Commercial legal expenses insurance can help cover the costs of defending your business in court, dealing with contract disputes, and recovering unpaid invoices. If a client refuses to pay for a large catering order, this cover can assist in legal proceedings to reclaim the debt.
