How Much Does Bakery Insurance Cost? 2025 Rates

U.S. bakery businesses can expect to pay between $800 and $900 annually for comprehensive business insurance, averaging $65 to $75 per month. The primary cost drivers are location, type of bakery, business size & revenue, types of products sold and employee count.

How Much Does Bakery Business Insurance Cost?

The average bakery business in the U.S. pays between $65 and $75 per month for a full business insurance package. That breaks down to roughly $800 to $900 per year. However, this is just a ballpark range and actual business insurance costs can vary widely depending on your specific situation.

Every bakery is different, which means insurance costs can vary a lot. There’s no single price that fits everyone. A small home-based bakery with no employees will pay much less for insurance than a large bakery with a storefront, several ovens, and a team of workers.

Things like the kind of baked goods you make, your business hours, how much your equipment is worth, and where your bakery is located all affect how much you’ll pay for insurance.

For example, a bakery that uses deep fryers or large ovens may pay more for property insurance because of the higher fire risk, compared to a bakery that only makes simple items like cookies or bread with little equipment.

Knowing what affects your bakery’s insurance cost can help you choose the right coverage and plan for the real expenses of protecting your business.

Average Bakery Insurance Costs For Coverage Types

When it comes to protecting your bakery business insurance, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most bakeries need.

• General liability insurance: $35 per month
• Business owner’s policy: $65 per month
• Workers’ compensation insurance: $125 per month
• Commercial auto insurance: $165 per month
• Cyber insurance: $140 per month

Commercial Auto Insurance

Bakeries that offer delivery, catering, wholesale drop-offs, or mobile dessert services often need commercial auto insurance. The average cost is about $165 per month.

This coverage applies when business vehicles are involved in collisions, vandalism, theft, or cause injury or property damage while making deliveries. Pricing depends on the number of vehicles, their value, the distance they travel, and driver history.

Average annual premiums across 10 states:

Note: Estimates are blended average annual Commercial Auto premiums for bakery businesses using sample quotes from both small and large insurance agencies and reflect bakery‑specific vehicle exposures in each state; actual premiums will vary by insurer, vehicle list and limits, selected deductibles, driving records, business mileage, garaging ZIP code, fleet size, and other business‑ and location‑specific underwriting factors.

Workers’ Compensation Insurance

Workers compensation for bakery businesses averages around $125 per month.

This coverage helps pay for medical care, lost wages, and recovery support if an employee is injured while working. In a bakery, common risks include burns, slips, knife injuries, lifting strain, and delivery accidents. Premiums are based on payroll size, job roles, claim history, and safety practices.

Average annual premiums across 10 states:

Note: Estimates reflect typical bakery employee risk levels. Actual pricing varies by payroll, classification codes, and claims.

General Liability Insurance

General liability insurance is one of the most common policies for bakeries, costing about $35 per month.

This coverage protects your bakery if a customer is injured or property damage occurs on your premises. For instance, if someone slips on a freshly mopped floor or is accidentally burned near a display case, this policy helps with medical bills and legal defense. Typical limits are $1 million per occurrence and $2 million aggregate.

Premiums vary based on bakery size, location, products sold, and customer volume.

Average annual premiums across 10 states:

Note: Estimates are blended average annual General Liability premiums for bakery businesses based on sample quotes from both small and large insurance agencies and reflect bakery‑specific exposures in each state; actual premiums will vary by insurer, coverage limits and endorsements, loss history, chosen deductibles, location and ZIP code, and other business‑ and site‑specific underwriting factors.

Cyber Insurance

Cyber insurance is becoming more relevant for bakeries that take online orders or process digital payments, with an average cost of about $140 per month.

This coverage helps if customer data is exposed due to hacking, malware, payment system breaches, or ransomware. It may cover notification costs, legal fees, data recovery, and monitoring services. Premiums depend on transaction volume and security controls.

Average annual premiums across 10 states:

Note: Estimates are blended average annual Cyber Insurance premiums for bakery businesses using sample quotes from both small and large insurance agencies and reflect bakery‑specific cyber exposures in each state; actual premiums will vary by insurer, revenue and transaction volume, security controls and incident response readiness, coverage limits and sublimits, retention levels, and other business‑ and location‑specific underwriting factors.

Business Owner’s Policy (BOP)

A Business Owner’s Policy combines general liability and commercial property protection into one package. For bakeries, the average cost is about $65 per month.

A BOP can help cover claims involving customers as well as damage to ovens, mixers, refrigerators, display cases, furnishings, or your building. If a fire damages your kitchen or spoils inventory, a BOP may help pay repair and replacement costs. Pricing depends on property value, location, revenue, staffing, and optional coverages like food spoilage, equipment breakdown, or business interruption.

Average annual premiums across 10 states:

Note: Estimates are blended average annual Business Owner’s Policy (BOP) premiums for small‑to‑mid sized bakery businesses using sample quotes from both small and large insurance agencies and reflect bakery‑specific exposures in each state ; actual premiums will vary by insurer, chosen coverage limits and endorsements, deductibles, loss history, safety and food‑safety practices, and other business‑ and site‑specific underwriting factors.

Bakery Business Insurance Costs By Provider

Bakery business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for bakery businesses from both small and large agencies and reflect typical coverages such as general liability, product liability, property/BOP, equipment breakdown, and workers’ compensation; actual premiums will vary by location, revenue, number of employees, product types, safety controls, claims history, and selected coverage limits

What Factors Impact Your Bakery Business Insurance Costs?

Bakery business insurance premiums are carefully calculated by underwriters based on your business’s risk profile. From the food you serve to your location and claims history, several factors influence what you’ll pay for coverage.

Location

If your bakery is in a place where cybercrime is more common or the state has strict data protection laws, your insurance may cost more. Similarly, bakeries with a lot of tourist traffic may see higher premiums because of the higher risk profile.

Weather matters too; bakeries in areas with a history of severe weather events like tornados or hurricanes can see higher costs.

Type of Bakery

Bakeries that take online orders or payments through a website are more at risk for cyberattacks than small walk-in shops, so they may need more coverage. Similarly, there are different costs contingent upon which products you see like:

• Breads and pastries
• Custom cakes and pastries
• Wedding cakes
• Complex fillings
• Gluten or allergy free products

Whether you sell directly to the public or sell wholesale products to restaurants can impact costs too.

Bakery Business Offerings

Your products may extend beyond baked goods. Your bakery can see higher insurance costs for things like:

• Cookie decorating classes on site
• Lunch items like sandwiches and salads sold in addition to baked goods
• Espresso machines for complex coffee orders
• Catering services
• Seating for dine-in customers vs. to-go only
• Product delivery

Each of these business offerings can change your liability risk and your insurance costs.

Business Size & Revenue

The more money your bakery makes and the bigger your business, the more customer data you probably collect, this can increase the cost of insurance. A baker who makes cookies from home on a part-time basis will have lower risks/costs compared to a large bakery that employs 40 people and operates a full catering service.

Employee Count

The more employees who can access your computer systems or customer data, the greater the chance of mistakes or scams, this can raise your insurance cost. As such, bakeries with more employees will have heightened risks compared to the part-time cookie baker mentioned above.

Claims History

If you’ve filed frequent insurance claims, underwriters will see you as higher risk, leading to higher rates. A clean claims record can qualify you for discounts.

Credit Score

Credit score tells insurers a lot about your financial history and ability to handle certain financial risks. Having a good credit score can often reduce insurance costs for a bakery business by an average of 30% compared to a bad credit score.

Insurance Provider

Rates vary among insurers. Some specialize in hospitality risks and offer better pricing or more flexible options. Comparing quotes from multiple carriers can save you money.