Business Insurance For Bakers

Compare business insurance quotes with Savvy to find the best policy for your bakery business.

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, updated on July 17th, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

Do you make the best meat pies and cream buns in your neighbourhood? Even if you run a thriving bakery, you also face a range of risks that could put your business at risk if you don’t have the right insurance policy to protect you from a variety of incidents. That’s why it’s important to compare your options right here with Savvy.

By answering a few simple questions about your business and the insurance you need, you’ll have a range of quotes from some of Australia’s most respected insurers to compare all in one place. Use our quick and easy comparison service to make sure you get the best-value insurance for your bakery today.

What types of insurance should I buy for my bakery?

Unfortunately, bakers face numerous risks in their everyday lives. From the risk of burns, scalds and other bodily injuries to the liability risks of serving the public food, bakers traditionally need several different types of insurance. These include:

Product liability insurance

Product liability insurance will cover you against third-party claims that a product you supplied caused material loss, sickness, injury or death. This type of insurance is important for anyone who sells freshly cooked food, as anything which is eaten carries with it the risk of bacteria and virus transmission. Cover starts from $250,000 and can be bundled together with public liability and other insurances into a business insurance package.

What it covers:

  1. Claims that a product you supplied caused sickness or injury
  2. Third-party damages claims
  3. Legal fees to defend yourself

Public liability insurance

Public liability insurance is essential for anyone who runs a bakery, market stall or shop. It’ll cover you against claims that your business activity caused sickness or injury to a member of the public, or damaged their property. You’ll be covered if anyone should slip or fall in your bakery, for instance. Public liability insurance can offer between $5 million and $20 million worth of coverage.

What it covers:

  1. Third-party personal injury claims
  2. Damage to a third party’s property
  3. Legal fees to defend yourself

General business insurance

General business insurance may also be worthwhile to protect the equipment and machines you use in your bakery, such as industrial food mixers, blenders, ovens and fridges. Bakers usually have plenty of specialist business equipment which needs covering, so make sure you have the correct policy to insure all of your expensive assets.

What it covers:

  1. Fire, storms, theft, vandalism and collision which cause damage to your business assets
  2. Specialist cover for electronic equipment and other portable equipment
  3. Limited business interruption insurance

Accident and sickness insurance

Because you’re working in a high-risk environment all day, surrounded by burning ovens and hot oil, it’s worth considering what might happen to you and your family if you were unable to work for an extended period due to an accident.

Accident and sickness insurance can provide cover for you if you become unable to work, providing a weekly replacement income and helping you pay your bills if you're injured or suffer a serious accident.

What it covers:

  1. Loss of income as a result of an injury or illness

 Optional extras can include:

  1. Death benefits
  2. Disablement benefits
  3. Payment of business expenses during your recovery period

What isn’t covered under my bakery business insurance?

The most common general exclusions for these types of policies include:

  1. Injury to yourself or your employees (which is usually covered by accident and illness insurance)
  2. Flood damage (caused by a river or the sea due to an act of nature)
  3. Glass breakage (which you can get covered through an optional extra)
  4. Unlawful activity or criminal negligence on your behalf
  5. Reckless behaviour or intentional damage
  6. Anything to do with asbestos
  7. The effects of pollution caused by your business activity

How much will business insurance for my bakery cost?

There is no set cost for an insurance policy, as each applicant is different and faces unique risks. There are many factors that influence the cost of business insurance, including the following:

  • The state you’re in
  • Whether you live in a rural or urban area
  • Whether you’re a sole trader, have a partnership or run a business
  • Your business size or turnover
  • The number of your employees
  • Your insurance history, and whether you’ve made a recent claim

The main factor which will affect the cost of your insurance is the industry you’re in. All businesses in Australia are classified according to the risk their industry poses, and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another.

Another factor which will play a part in the cost of your insurance is your location. There may be two almost identical bakeries, one in Queensland and the other in the ACT, but the insurance for the business in Brisbane may cost more simply because of the environmental risks posed by that location.

You can find out how much insurance will cost for your business by comparing quotes right here with Savvy. Whether your bakery is located in a rural town or a suburban shopping centre, you’ll be able to find a policy which is perfect for your business needs here.

Why do I need business insurance for my bakery?

The reason you need business insurance as a baker is because you face multiple risks in your everyday job. There are not only the obvious risks such as sustaining a burn but also those due to the constant bending, lifting and twisting associated with being a baker. In addition, there’s the risk of running a shop with a large number of people visiting daily, so the chances of a slip, a fall or a trip are increased.

You’ve worked hard to set up your business, so it makes sense to protect your business and its reputation from anything that can go wrong. Business insurance offers protection in case anything happens to threaten your livelihood. If something unexpected does happen and you have adequate insurance to protect your business, you’ll have a much better chance of recovering quickly and getting back on your feet.

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More of your questions about business insurance for bakers

If I employ an apprentice in my bakery and they get injured, are they covered under my public liability insurance?

No – public liability insurance doesn’t cover employees for injury, so as an employer you will have to take out workers compensation insurance to cover any accidents or injuries that may happen to people who work for you. However, if your apprentice did something which caused a member of the public to get injured, such as if they stacked a fridge incorrectly and its contents fell on a customer, those third-party injury costs would be covered under your public liability insurance.   

If I want to sell my pies and cakes at a market, what extra insurance will I need?

Selling any produce at a market stall will usually require that you have at least $10 million in public liability insurance cover. However, the insurance you already have for your bakery should also cover your market stall, as long as the location of the market is listed as a retail business location in your insurance policy.

Are my business insurance premiums tax-deductible?

Yes – the Australian Taxation Office recognises that having business insurance is a legitimate cost of doing business, so the full cost of your insurance premiums can be claimed as a business expense and offset against your income.

How often will I have to pay my insurance premiums for my bakery?

You will be able to choose how often you pay your insurance premiums. You can either pay upfront all in one go for the year or in monthly instalments. Paying your insurance premium annually is usually between 5% and 10% cheaper than paying monthly, however.

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Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

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