Pasta Business Insurance
Getting insurance for your pasta business is essential.
This is because pasta businesses need to be protected from a variety of different risks, such as false advertisement allegations, vendor disputes, and trademark infringements.
Business insurance can also be pivotal when it comes to protecting your business’s pasta-making equipment from potential damage.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Pasta Business
General liability insurance is — generally speaking — one of the most important insurance policies for pasta businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Even so, you may benefit from purchasing additional coverage policies. This is because general liability coverage will not protect you from all of the foreseeable risks that you will face.
We recommend considering the following coverage options as well:
- Workers’ compensation insurance
- Business interruption insurance
- Commercial property insurance
- Intellectual property insurance
When you are purchasing your coverage, you will notice that there are two different types of insurers available as of 2024:
- Traditional brick-and-mortar insurers: Popular choices for small business owners include The Hartford and CNA.
- Online insurers: Popular choices for small businesses include Tivly and Next Insurance.
Even though both options come with different pros and cons, we believe that an online insurer is a better option for small businesses.
This is because online insurers have significantly lower operating costs and can thus offer personalized coverage at relatively inexpensive prices.
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Cost of General Liability Insurance
On average, pasta businesses in America spend between $500 - $1,200 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a pasta business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Pasta Business
Example 1: While touring your pasta-making facility, a visitor trips over a box, breaks an arm, and decides to sue your business for damages. General liability insurance would pay for your legal defense and any required settlement.
Example 2: As one of your investors enters the restroom, he slips on wet flooring, breaks a wrist, and asks your business to pay for his medical treatment. General liability insurance would cover his medical expenses.
Example 3: A competitor files a lawsuit against your company, claiming you libeled his business. While you disagree with the claim, you know you need to hire an attorney. General liability insurance would cover your legal defense costs.
Other Types of Coverage Pasta Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.
Product Liability Insurance
While you strive to produce and sell high-quality pasta products, there’s always a chance someone might decide your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in your pasta-making facility, equipment, and supplies. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the equipment and inventory stored there.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your pasta business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Pasta Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Generally speaking, yes. This is because getting the right business insurance policies before you start your pasta business will ensure that you will not have to face a legal dispute on your own, which can save you tens of thousands of dollars in the long term.
Not necessarily. Certain exceptions may be written directly into your pasta business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.