How much does bakery insurance cost in Australia?

Public and products liability insurance for bakeries that sell products made elsewhere costs from $360 a year for a $10 million limit.

Bakeries with premises, equipment or stock commonly add cover for them, often together in a business pack. A business pack's price depends on the factors below, including the sums insured you choose.

Cover depends on the policy and insurer you choose. Check the policy wording and its terms and conditions for what is and isn't included.

Each type of insurance is designed to cover different risks:

• Public and products liability insurance is designed to cover claims that someone was injured or their property was damaged in connection with your business. It is also designed to cover claims that a product you made, sold or supplied caused injury or damage after it left your hands.
• A business pack bundles several covers into one policy. It commonly includes property (building, contents and stock), business interruption, glass, theft, money and public and products liability. Options may include machinery breakdown and goods in transit.

Each cover is subject to the policy terms, conditions and exclusions.

What affects the cost of bakery insurance?

Your price may depend on factors including your industry classification, your revenue and the stage of your business. Licensing, professional or contractual requirements may also influence the limit of insurance you consider, which may affect the cost. Your existing controls and risk framework, your answers to insurers' risk questionnaires or proposals, and your recent claims history may also affect the total cost of your insurance.

For a bakery, the factors may also include:

• the activities on your schedule, such as baking on site, wholesale supply, deliveries or dine-in service
• your turnover and staff numbers
• your location
• the limits and excess you choose (the excess is the amount you contribute to a claim)
• the sums insured for your premises, equipment and stock, if you insure them
• any options you add, such as machinery breakdown or goods in transit

If you add seating, wholesale supply or deliveries, your activities change, and your price may change too. For business pack prices more generally, see our guide to business pack insurance cost.

What isn't included in these figures?

The figures cover public and products liability insurance only. Besides a business pack, a bakery may also arrange:

• Workers' compensation insurance, which is compulsory for employers under each state and territory scheme (Safe Work Australia). It is priced separately.
• Commercial motor insurance, designed to cover a vehicle used for business, such as a delivery van. A personal car policy may not respond if the vehicle is used regularly for business deliveries.
• Cyber insurance, designed to cover costs after a data breach or cyber attack, if you take orders online or hold customer data.

What does bakery insurance usually not cover?

Exclusions commonly include, but are not limited to:

• gradual issues such as wear and tear, rust, mould, vermin and depreciation
• the cost of recalling, repairing or replacing faulty products (product recall exclusion)
• dishonest, fraudulent or deliberate acts by you, your family or anyone acting with your consent. Dishonesty by an employee may sit under an employee dishonesty section of a business pack, where you select one
• cyber incidents and data loss, unless cyber insurance is added
• liability arising from using a registered motor vehicle. Some public liability policies include cover, with limits, for injury or damage while loading or unloading goods from a registered vehicle. Injury to other people caused by the vehicle generally sits with compulsory third party (CTP) insurance, a third party personal injury insurance that is often part of the vehicle registration fee (business.gov.au). Damage to other people's property may sit with commercial motor insurance, depending on the cover arranged

Important: This list is not exhaustive. Exclusions vary between insurers. Always refer to the policy wording and its terms and conditions for the exclusions that apply to you, and if you have questions you should speak to your insurance broker or the upcover team.

How do you compare bakery insurance quotes?

Quotes are easier to compare when each insurer prices the same details: activities, locations, turnover and the value of equipment and stock. Two business packs at a similar price can include different sections and sums insured, which changes what each policy may respond to.

How upcover can help

upcover arranges public and products liability insurance and business pack insurance for bakeries and patisseries. upcover works with 80+ insurance partners and can arrange quotes from a range of insurers.

• 70,000+ businesses covered across Australia
• 4.9/5 customer rating
• 80+ insurance partners

Get a quote for your bakery, or read our guide to what insurance a bakery needs.

Frequently asked questions

Do bakery insurance prices include GST and stamp duty?

The figures in this article include GST, stamp duty and fees.

Is paying monthly for bakery insurance more expensive?

A monthly plan may add instalment charges on top of the policy price.

How much does bakery insurance cost if you bake on site?

A business pack's price depends on the sums insured for your premises, equipment and stock, the sections you choose and the other factors above. An upcover team member or an insurance broker can talk through these, or you can get a quote for your bakery.

Do these figures apply to a home bakery?

The figures in this article are for bakeries that sell products made elsewhere. A home bakery's price depends on the same factors, including its activities, where it sells and the limits it chooses.

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_{Written by upcover's editorial team.}

_{This article provides general information only and does not take into account your objectives, financial situation or needs. Insurance availability, cover and price are subject to underwriting and the terms, conditions, limits and exclusions of the relevant policy. Read the policy wording and its terms and conditions before deciding. Cost figures are a guide as at [PRICING OWNER TO CONFIRM: Month Year], not a quote. For commercial motor vehicle insurance, also read the Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG). upcover arranges insurance products with selected insurers and underwriters and does not compare all general insurers or insurance products available in the market.}