Bakeries simply bring joy to their customers. But while you’re selling cupcakes, cookies, and other sweet treats, you can’t ignore the fact that your business faces a lot of risks.

Customer slips and falls, fires, employee injuries, and lawsuits can all unexpectedly take a bite out of your profits and make it difficult for you to survive. But if you have South Carolina small business insurance designed for bakeries, you’ll have the protection you need to get back on your feet.

A South Carolina independent insurance agent can help you find bakery insurance that covers your risks and fits your budget.

What Is Bakery Insurance?

According to the American Bakers Association, bakeries are found in all 50 states, the District of Columbia, and Puerto Rico. Bakeries in the US have an overall economic impact of over $153 billion.  

Bakery insurance is a specific type of business insurance that is designed to meet the unique needs of bakeries in South Carolina. It is typically a package of several policies that cover property damage and lawsuits, allowing you to focus on running your business and serving your customers.

Most bakeries in South Carolina need commercial property insurance and commercial liability insurance at a minimum. But not every risk you face is covered by these basic policies. You’ll probably need to purchase a variety of additional South Carolina business insurance policies to make sure that your bakery is protected from the numerous property losses and claims of negligence that can arise as a result of your operations.

How to Insure a Bakery in South Carolina

Bakeries in South Carolina need a customized package of property and liability insurance policies to protect them from financial losses. How you insure your bakery depends on your unique risk factors, but here are some basic bakery insurance policies to start with.  

Property insurance for bakeries in South Carolina

Bakeries in South Carolina need commercial property coverage for:

• Buildings and their contents
• Inventory and stock
• Business interruptions 

Commercial property insurance offers protection for your building (if you own it), as well as everything inside it. If you sustain a property loss after a fire, a tornado, lightning, theft, vandalism, or some other covered event, this policy helps you pay to rebuild, make repairs, and replace destroyed or damaged furniture, kitchen equipment, inventory, paper goods, plates and cutlery, and even outdoor tables, umbrellas, and lighting.

When you have a property loss, it’s likely that you might also have to close down for a while in order to make repairs and restock your bakery. In these cases, business interruption coverage (which is usually part of a commercial property policy) helps replace lost income during the shutdown period. It also covers some of your ongoing expenses like rent, employee salaries, utility bills, and more. 

It’s important to ensure that all of your refrigerators, ovens, and other baking equipment remain in good working order. If something essential breaks down, you could face a loss of income during the downtime, as well as significant repair or replacement costs. 

Talk to your independent insurance agent about your need for equipment breakdown coverage. It protects against costs associated with the sudden and accidental breakdown of machinery and equipment. It pays to repair or replace the equipment as well as any business interruption costs that accompany it.

One of the most important things you need to protect is your inventory of baked goods and ingredients. You need special coverage for product losses due to contamination or spoilage. Contamination and spoilage coverage pays for certain losses if butter, eggs, other ingredients, or finished baked goods are spoiled or contaminated due to refrigeration breakdown, utility interruption, or some 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. 

Liability insurance for bakeries in South Carolina

Liability insurance protects your bakery when you are considered to be negligent or are blamed for causing harm to an individual or another business. It is your financial lifeline if you are sued for some reason.

Commercial general liability (CGL) insurance provides broad protection for third-party bodily injury and property damage claims. If a customer trips and falls inside your bakery, 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.

General liability insurance also provides coverage for product liability, advertising liability, slander, and libel claims against your bakery.

What Doesn't Bakery Insurance in South Carolina Cover?

Your basic commercial property and commercial liability policies offer very broad coverage that protects you in a wide range of circumstances. But this basic bakery insurance does not cover everything that might go wrong, and in fact, both exclude coverage in certain areas where you may have serious risks.

If you have business-owned autos for making deliveries, your general liability policy will not cover any injuries or damage caused by an auto accident involving one of your vehicles.

You’ll also need to purchase coverage for worker injuries and employment-related lawsuits.

Fortunately you can purchase a wide range of additional stand-alone policies or policy endorsements (coverage add-ons) to make sure you get coverage for situations that are excluded from coverage or not sufficiently covered under your basic property and liability policies.

• Commercial auto insurance protects any vehicles owned by your South Carolina bakery. In addition, if employees drive personal vehicles for business use—like picking up supplies or making occasional deliveries—you need hired and non-owned auto liability insurance.
• Worker's compensation insurance is required for most businesses with employees. It protects your workers 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 bakery if you are the victim of a cyber breach. If your computer network or website is hacked and confidential customer or vendor information is exposed, the damage to your reputation and bottom line can be insurmountable.
• Employment practices liability coverage protects you if a current or former employee sues you for discriminatory employment practices. Employment-related claims are typically excluded from CGL policies.

Be aware that flood damage is not covered under any of your bakery insurance policies in South Carolina, but if you’re located in an area that is prone to floods, purchasing flood insurance is highly recommended.

You can purchase commercial flood insurance from the National Flood Insurance Program (NFIP). It covers property damage caused by flooding, including flooding caused by hurricanes.

Benefits of Bakery Insurance in South Carolina

If you own and operate a bakery in South Carolina, you’ve probably spent a great deal of time and money setting up your business. You’ve had to hire employees, rent or buy equipment, purchase furnishings and décor, procure your products, and perfect your recipes. 

Yet so much of what can go wrong is entirely out of your control. At any time, your hard work can be jeopardized if you don’t have the right bakery insurance in South Carolina. 

Bakery insurance in South Carolina protects your investment in your business 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 a food or beverage purchased at your bakery. 

Here are just a few things that can go wrong that can be mitigated with bakery insurance in South Carolina:

Bakery insurance in South Carolina benefits you by helping you pay for the overwhelming costs related to these types of problems.

What Does Bakery Insurance Cost in South Carolina?

The cost of bakery insurance in South Carolina depends on the policies you choose, the unique risks your bakery 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. 

How a South Carolina Independent Insurance Agent Can Help

Bakeries in South Carolina need trusted advice from a local insurance expert. That’s why it makes sense to work with a South Carolina independent insurance agent.

Independent insurance agents can help you shop around for insurance companies that specialize in bakery insurance, so you don’t have to go it alone. A South Carolina independent insurance agent will help you assess your risks, so nothing is left to chance. And your agent will be there for you if you have to file a claim.