Protect your business with food liability insurance

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Do I Need Insurance to Sell Baked Goods From Home?

When you are looking to sell baked goods from home, it is important to understand what the rules are surrounding your business. You are considered a home bakery, and this means you must have food insurance to protect you, your customers, and your business. Insurance for a bakery depends on a number of factors, such as whether you have employees, or you sell goods out of a storefront. FLIP, or the Food Liability Insurance Program, offers a variety of insurance packages to meet your specific needs.

General liability insurance is basic coverage that protects your business against personal injury or in the event there is damage to your home. You can add product liability insurance coverage to your policy, which will protect you if there is something wrong with your product that causes a customer harm. Basic policy coverage begins at around $300, and increases as you add more coverage to your plan. Insurance coverage can also be added for damage to a rental if you are renting a commercial kitchen periodically, or if you have business property that you want to be reimbursed for in the event it gets damaged or stolen. 

Wondering how much is commercial insurance? Policies can begin low in cost and increase when you want or need additional coverage. Food vendor insurance allows you to grow your business over time, with the protection you want from an insurance policy. Providers like FLIP insurance will talk to you about the various insurance coverage options available to you, and will design an insurance policy that is right for your business. Learn what the legal requirements of running a bakery out of your home entail, and make sure that you have the correct type of insurance to meet your needs.

Cottage Food Insurance

Cottage laws are designed to provide regulations to people running a business out of the home. Insurance for home-based food business ventures depends on what you are cooking and what the regulations are in your area. Whether you need home based bakery insurance, or home food business insurance, it is important to figure out the correct type of insurance and permits you need to run your business legally.

Cottage cooks that run a home-based business are different from restaurants or storefronts offering baked goods. Cottage cooks need to have cottage food insurance and a cottage food permit to successfully operate a business out of the home. You do not want to be held personally liable if one of your customers gets food poisoning, or gets injured on your property. Home cottage business insurance and a cottage food permit are a cost of doing business in the home food preparation industry. When you invest in insurance for your cottage food business, you are protecting your assets and your ability to grow into a bigger business. When you need insurance for your bakery business, or you want to know about bakery insurance costs, it's time to talk to an insurance agent from an accredited liability insurance provider.

Small Business Insurance

Running a bakery for pets will require dog bakery insurance, which can be reduced with a FLIP insurance coupon. Other types of insurance include:

You may need a policy that outlines specific details for your small business insurance needs, such as FLIP insurance for a food truck. Whether you are selling prepared meals out of the home, bakery goods for pets, cakes out of a home bakery, or food items out of a food truck, you need an insurance policy that works for you. Every small business has specific insurance needs, and an insurance agent can talk to you about the type of coverage you need to protect yourself. With the right insurance in place, you have the coverage you need to focus on the business you are trying to grow.

Additional Resources

Can I Sell Cookies From My Home? | Can I Sell Cookies From My Home? | Can You Sell Homemade Food On Facebook? | Can I Sell My Homemade Pickles? | Do I Need Insurance to Sell Baked Goods From Home? | What Is Required to Be On a Food Label? | What Sells Best at Farmers' Markets?

When you start selling baked goods from your home, you should consider getting insured. In some states, it's required. Read on for more details.

Heather Brookshire

The Cake Whisperer


My business would not be the same without my Castiron website! It is an easy setup with lots of customization and tons of support! I am so glad I set up my shop last year before the holidays — it really helped increase my sales!

Amanda McMonigle

The Whimsical Cookie


Castiron provides me a professional site to my customers increasing my credibility and value while giving me the tools to effectively market and manage my business in an easy, user-friendly manner.

Kim Sims

Wesley's Treats Hallie's Sweets


Castiron has made my cottage bakery shine, and my business easy to manage. As a platform they care about my business as much as I do.

Katie Maschoff

Mill City Cooking Company


Before Castiron, I was taking orders really manually, through emails or texts or Facebook. Now I can send customers straight to my website, and I don’t have to worry about missing any details.

Daniella Smith

Oso Good Clean Eats


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Ali Serpe

Kultured Kombucha


I realized that the barrier of having to DM or text me to order was holding a lot of potential customers back.

Now that I have a professional website and a simple ecommerce checkout, I'm seeing a huge increase in new customers and they appreciate how easy Castiron makes ordering.

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