Insurance For Your Home-Based Food Business
When everyone was laid off for the pandemic, people started looking for ways to make money from home. A lot of people found they could make and sell food products. They may have had a garden and sold produce, baked cakes, pies, cookies, and such then sold them, or they may have even made whole meals and delivered them. If you did this, and are still doing it, you need to have business insurance. There are a number of different coverages for home food industries. You need to talk with your insurance agent to make sure you have the coverage you need.
First and foremost you need general liability. This will protect you if anyone becomes ill from your food when there is negligence involved. This coverage also protects you if someone is injured on your property when they come to pick up their food. In addition, it also covers your property and equipment.
Product liability is used when someone becomes ill from your food through no negligence. This means the problem was a complete accident or unavoidable. Perhaps one of the ingredients was spoiled but no one in your establishment knew it, or an ingredient caused an allergic reaction. Do not rely on general liability to cover you completely. You can also ask to have accidental or contamination liability added under this coverage.
In addition to the above liability coverages, you should ask the business insurance agent about any specialty coverage for the type of food you are preparing. This could include a rider for selling meats, produce, or dairy products. You want the most coverage possible to avoid having to pay for a lawsuit out of your pocket.
Of course, since it is a business, there are some common business coverages necessary. Don't forget to protect your clients' information if you do business online. If there is ever a breach of your data, make sure you have data breach coverage. If you are renting a kitchen, be sure you have to have coverage for the facilities and any equipment if there is a fire or something happens while you are using the place.
It may seem like there is a lot to know and it can be confusing. As long as you discuss your business and products with a business insurance agent they can help you cater the policy to your needs.