Edible Cookie Dough Cafe Business Insurance

Getting insurance for your edible cookie dough cafe is essential.

Edible cookie dough cafes need to be protected against things like claims arising from product liability, negligence, and false advertising.

For example, a customer may claim that your edible cookie dough still gave them salmonella, or that it contains ingredients that were not properly publicized. 

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 an Edible Cookie Dough Cafe

General liability insurance is — generally speaking — one of the most important insurance policies for edible cookie dough cafes. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

It is common for edible cookie dough cafes to carry a number of supplementary insurance policies to bolster the coverage of general liability. Some of these include:

  • Commercial property insurance
  • Product liability insurance
  • Workers’ compensation insurance
  • Business interruption insurance

You will typically have the choice between two general types of insurance providers when deciding where to buy your business coverage. These choices are:

  • Traditional brick-and-mortar insurers — For example, Nationwide, The Hartford, and Hiscox. Such providers have a long history of providing quality insurance, though it can be more expensive due to their higher operating costs.
  • Online insurers — For example, Tivly and Next. Such providers are younger in the insurance industry but gaining popularity due to their affordability. What’s more, because these providers take advantage of AI, the quality and accuracy of their quotes are quite high.

Find the Right Policy at the Best Rate

We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.

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Cost of General Liability Insurance

On average, cookie dough cafes 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 an edible cookie dough cafe to other professional industries using the graph below:

Graph showing average price of general liability insurance prices per industry

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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Finding the most affordable premium starts with getting accurate quotes from highly rated providers.

Common Situations That General Liability Insurance May Cover for an Edible Cookie Dough Cafe

Example 1: During an event held at the cafe, there is an altercation between two customers. Personal property is damaged and one person is sent to the hospital with an injury. Your general liability insurance should cover you if you are sued for medical costs and replacement of damaged personal property.

Example 2: A customer drops a glass of water and fails to inform your staff of the broken glass. As a result, a customer cuts their foot and is unable to work for several weeks. A general liability policy would most likely compensate the customer for medical bills and lost wages.

Example 3: Your recently redesigned business cards catch the eye of a local business owner who claims similarities to their copyrighted logo. He is suing for copyright infringement, seeking damages in the amount of $10,000. A general liability policy should cover legal fees and any potential payout. .

Check out our review of the Best Small Business Insurance Companies.

Other Types of Coverage Edible Cookie Dough Cafees 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 other types of insurance all cookie dough cafes should obtain:

Commercial Property Insurance

Commercial property insurance will pay to repair or replace owned real estate and other property, including equipment and supplies, that is damaged by covered events. You likely had extensive buildout costs and purchased specialized cooking equipment. To ensure proper coverage, carefully consider these costs when purchasing your policy.

This coverage is frequently available as part of a business owner’s policy.

Product liability insurance

Product liability insurance offers protection should a product you make and sell lead to illness or injury. These policies are tailored to the specifics of your business and the products you sell. 

Workers’ Compensation Insurance

You are likely required by state law to ensure that each member of your workforce is financially protected should they sustain an injury or illness at work. Workers’ compensation insurance provides protection. While most states allow business owners to exempt themselves from coverage, those who work onsite regularly are urged to forego this exemption.

Workers’ compensation is typically purchased as a standalone policy.

Business Interruption Insurance

Most small businesses rely on a regular business to keep the doors open and employees paid. Being out of work for an extended period of time forces many to close their doors forever. If an event like a fire or other disaster keeps you from being able to open for a period of time, business interruption insurance can help business owners make up some of their lost revenue.

Business interruption insurance should be available as part of a business owner’s 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 edible cookie dough cafe:

  • 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.

Business Insurance Is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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Edible Cookie Dough Cafe Business Insurance FAQ

Can I buy business insurance online for my edible cookie dough cafe?

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.

What is included in a business owner’s policy?

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.

What is the difference between business insurance and general liability insurance?

"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.

Do I need insurance before I start an edible cookie dough cafe?

Yes, your edible cookie dough cafe will be exposed to a number of risks from day one that will necessitate business insurance to secure your business’s financial security.

This also assumes that your cafe doesn’t have to carry any specific policies in order to maintain legitimate operation (e.g., workers’ compensation), which is very possible.

Will insurance protect my edible cookie dough cafe from everything?

Not necessarily. Certain exceptions may be written directly into your edible cookie dough cafe insurance policy, and some perils may be entirely uninsurable.

Do I need business insurance if I already have an LLC?

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.

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