Why do cake makers need insurance?
A customer becomes ill
If you serve members of the public, food safety is paramount. Despite following hygiene and allergen protocols, there is always a risk that a customer could become ill after consuming your products. Perhaps an undeclared allergen makes its way into a cake, or your batter is contaminated during preparation.
If a customer claims your cake caused food poisoning or an allergic reaction, they could seek compensation for illness, medical expenses or lost wages. The right insurance could help you cover the cost of defending or settling a claim.
An employee gets injured
Burns from hot ovens, cuts from sharp utensils, slips on wet floors, and even repetitive strain injuries are all risks associated with cake making. If an employee is injured as a result of working for you, they may be entitled to compensation for injury, medical bills and lost income if you are found liable.
Having the right insurance can help cover these costs, letting you focus on creating a safer working environment for your team.
Damaged equipment
From industrial mixers and custom ovens to decorating tools and display cases, professional cake-making equipment can be expensive. If essential equipment is damaged, your business operations could grind to a halt.
Insurance can help cover the costs of repairs or replacement, letting you get back to baking as quickly as possible.
Hiscox Risk Academy
Hiscox Risk Academy is a free online portal available to all policyholders. It provides a suite of e-learning modules tailored to each business and their industry, covering topics such as fire risk management, employee wellbeing, and general health and safety
You can access courses, such as:
- Food Safety – provides training on food hygiene, safety laws, and risks related to food handling.
- Food Allergy Awareness – identifies the main types of food allergens, outlines key legal responsibilities relating to food safety, and highlights key precautions to help protect customers.
What insurance is available for cake makers?
Public and products liability insurance
Public and products liability insurance can protect you if a member of the public claims they’ve been injured or their property is damaged because of your business activities. For example, if a customer slips on an unmarked wet floor in your shop and seeks compensation for their injuries. This cover can help with up to £10 million in legal defence and compensation costs.
As a cake maker, you are also at risk of food safety-related claims. If someone has an allergic reaction as a result of an incorrectly labelled cake, they could seek compensation. Products liability insurance is sold with public liability insurance. It can help you if a customer claims that one of your cakes caused illness or injury.
Business contents insurance
Contents insurance can help cover you if stock or equipment is lost, damaged or stolen. It can protect cake-making equipment, such as mixers, ovens, refrigerators, decorating tools, and display cases, in the event of damage, destruction, or theft. Whether it’s a fire, flood, or theft, contents insurance can help you repair or replace your business essentials without the full financial burden.
Employers’ liability insurance
If you employ staff, employers’ liability insurance isn’t just helpful – it can be a legal requirement (external link). This insurance can protect you if an employee becomes ill or injured as a result of their work.
Cake making involves various risks, from oven burns to repetitive strain injuries. If an employee makes a claim against you, employers’ liability insurance can cover related compensation and legal defence costs. Even if you only employ temporary or part-time staff during busy periods, you may still need this coverage to comply with the law and protect your team and your business.
These are just some of the types of cover we offer. Tell us about your cake making business and we’ll build an insurance policy tailored to you.
Get your quoteInsurance for cake makers: FAQs
Do I need insurance to sell homemade cakes?
You may still need business insurance when operating your cake-making business from home. Your home insurance policy is unlikely to cover you if you use your home kitchen.
Hiscox can help build the right policy for your circumstances. Our home-based business insurance page provides a guide to the products you might need.
Does insurance for cake makers cover kitchen appliances and utensils?
Contents insurance and portable equipment insurance can support cake makers. If you only use your appliances and utensils in your own kitchen, these can be covered under our contents insurance. If you have any items which you take out and about with you, these can also be covered under our portable equipment insurance.
Does insurance for cake makers cover deliveries?
Public liability insurance for cake makers can cover you while delivering cakes to clients.
If you accidentally damage someone’s property or injure them while delivering a cake, for example, if someone trips over a cake box that you or one of your employees left on the floor, public liability insurance can help cover the costs of compensation and legal defence costs. However, if you’re using a motor vehicle to transport cakes, claims arising from the use of that vehicle will need additional coverage, such as business motor insurance.
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