Story by Christine Nordstrom
KANSAS CITY, MO — Protection from internal and external factors is essential for any business owner. For bakers looking to invest in their business’s longevity, selecting the right insurance is the first step in establishing a safety net around the operation. Whether it be property damage, business interruption or employee injuries, insurance protects against the various risks and potential financial losses that could jeopardize a brick-and-mortar. Here’s a list of the top five things bakers need to consider when selecting their insurance.
Choose your agent (or agency) wisely. The No. 1 thing is to know who you’ll be working with. At any stage of the operation — from a single booth at a farmers market to a bakery with multiple storefronts — the agent should act as a partner to the business. Building the right relationship, where the provider understands the specific operations and associated risks, can make or break an insurance policy.
Consistent communication with your agent can alleviate times of turmoil. It’s vital for business owners to understand that premiums can be adjusted according to their financial and operational needs. Having an agent who offers personalized service and ongoing support will help secure a bakery’s future and provide peace of mind.
Considering the risks
Identify your business needs. Analyze the space for potential hazards and consider risks that are unique to the bakery. While all business owners should have general liability insurance, it’s also important to recognize other specific needs based on geographical location. Bakeries can be at risk for natural disasters such as hurricanes, tornadoes or wildfires, so identifying a policy that incorporates coverage for such weather events is key.
For any renter, verifying the landlord’s requirements is also a top priority. Property insurance, whether supplied by the business owner or landlord, will protect the structure against damage from fire, wind, hail and theft. For a retail bakery with multiple locations that uses a commissary kitchen, property insurance is a crucial tool in protecting the industrial equipment.
Oftentimes, commercial glass insurance can be a smart investment. Replacing or repairing damaged glass — whether from accidents, weather or vandalism — can be expensive. Glass insurance helps a business cover these costs.
Getting the best deal
Confirm the best price point. Approaching insurance in a cost-effective way will ease some of the strain on a baker’s wallet. When working on a budget, it’s best to shop around insurance providers and get at least three separate quotes to ensure the best bang for the buck. Having multiple quotes in hand can also provide leverage when negotiating for a more affordable price. By reviewing different quotes, bakers can compare the details of each policy and choose the one that best fits their business needs.
Tailor coverage to business size. Start with a smaller policy and have it grow with the business. Smaller policies will have lower premiums, and as the bakery expands, the coverage can be adjusted to keep pace.
With any expansion, new risks emerge, and existing ones may intensify. This could require a more robust insurance plan. Being mindful about coverage helps mitigate financial burdens and supports long-term stability. With a tailormade policy, retail bakers can avoid paying for unnecessary coverage and ensure optimal protection.
Confirm policy audits. Occasionally, business owners can expect to be audited. These can be triggered by certain events, depending on the specific policy and nature of the operations.
The frequency of audits can vary by type and insurance provider, so it’s important to speak with the agent or agency to confirm what documentation will be needed. Financial records, including payroll and sales data, can help verify the accuracy of the reported information and confirm a business owner is paying the correct premiums.
By staying informed, identifying areas of need and keeping an open line of communication with a trusted provider, bakery owners can not only keep their businesses afloat but also protect them well into the future.
This story has been adapted from the June | Q2 2025 Craft to Crumb mini-mag. Read the full story in the digital issue here.
