If you have turned your kitchen into a bakery headquarters for cookies, cakes, or artisan bread, you probably know the Texas Cottage Food Law pretty well by now. As your business grows, there is one important ingredient that many cottage bakers forget to add. While you may already be familiar with the general risks facing Texas bakeries, running a bakery from your residence presents a unique set of insurance challenges that a standard commercial shop doesn’t have to worry about.
You need a business insurance policy that matches where you actually work. And for you, that means your home.
Running a bakery from your house is not the same as running a commercial storefront. You have unique risks, and a standard commercial policy does not always apply. This is why your home-based bakery needs coverage designed for what you do.
The Homeowners Insurance Myth
One of the biggest mistakes home-based bakers make is assuming their homeowners insurance will cover their business.
Here is the problem…
Most homeowners policies have business exclusions. That means they are not designed to cover business liability or equipment used for commercial purposes.
Then there is the “kitchen fire” issue. If a fire starts while you are baking for a customer, your home insurance carrier could deny the claim if they did not know you were running a business out of your kitchen.
So yes, your home is where you can kick your shoes off and relax. But it is also your workplace. And you need coverage that treats it like both.
Specialized Coverage for the Cottage Baker
General Liability – Beyond the Doorstep
You are not just baking. You are delivering, setting up at markets, or having customers pick up orders at your home.
Premises liability protects you if a customer slips on your porch during a pickup.
Off-site coverage is also important. If you sell at a local market and your booth collapses and injures someone, you want to be protected. A home-based policy can help cover these situations.
Product Liability – The Bad Batch Protection
Your reputation is everything in the baking world. Product liability is your safety net if someone claims your food made them sick or caused an allergic reaction.
Even if you follow every food safety guideline, accidents can happen. Cross contamination is a real risk, and a small business cannot afford to fight a lawsuit alone.
Business Personal Property
Think about the cost of your stand mixers, convection ovens, and all the specialty ingredients you keep on hand.
A home-based business policy ensures these items are covered at full replacement value, even if they are only used for business.
Loss of Income and Extra Expense
If a storm knocks out power for a few days, you do not just lose lights. You lose refrigerated ingredients and you lose the ability to finish that weekend’s wedding cake order.
This coverage helps reimburse you for lost revenue and extra costs, like renting a temporary kitchen.
Managing Risk in a Residential Kitchen
Running a bakery at home requires a different safety mindset than a commercial kitchen.
Keep business ingredients separate from family groceries. Use labeled airtight containers so you can reduce the risk of cross contamination.
Keep pets and kids out of the kitchen during business hours. It is not just a hygiene rule. It is a risk management strategy.
And keep a simple log of your batches. If a supplier issues a recall, you will be able to quickly identify which customers might be affected.
Why Rollo Insurance is Your Home-Based Partner
At Rollo Insurance, we understand the cottage food hustle. Your home-based bakery is a labor of love. We can help you find coverage that protects your home, your equipment, and your recipes for the long haul.
If you are ready to protect your sweet success, contact Rollo Insurance today for a home-based business insurance review.
Let’s make sure your bakery keeps rising.
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