Cottage industry home made food items insurance

[c1298]

What is the name of your state (only U.S. law)? CA

I am planning to sell some food items, say like cookies and cakes etc, on the internet. All will be prepared and cooked at my residence. No commercial kitchens will be involved. This will be a very small scale operation, at least at the starting phase.` The website will allow them to be sold and shipped to anywhere in the US.

Even though the utmost care will be observed to protect food from being spoiled on the way to the customer, there might be situations that the food may go bad and cause some unexpected harm to the end customer. And since we are living in a sue-happy country, I am hoping to take an insurance policy to protect me against such incidents.

What do I need to look for in terms of insurance coverage ? Are there any companies, providing such insurance to small businesses in a cost effective manner ? If yes, what are some resources I can look for them ?

 

[quincy]

What is the name of your state (only U.S. law)? CA

I am planning to sell some food items, say like cookies and cakes etc, on the internet. All will be prepared and cooked at my residence. No commercial kitchens will be involved. This will be a very small scale operation, at least at the starting phase.` The website will allow them to be sold and shipped to anywhere in the US.

Even though the utmost care will be observed to protect food from being spoiled on the way to the customer, there might be situations that the food may go bad and cause some unexpected harm to the end customer. And since we are living in a sue-happy country, I am hoping to take an insurance policy to protect me against such incidents.

What do I need to look for in terms of insurance coverage ? Are there any companies, providing such insurance to small businesses in a cost effective manner ? If yes, what are some resources I can look for them ?

Here is a link to the laws and requirements in California under the Homemade Food Act: http://www.cdph.ca.gov/programs/documents/fdbcfofaqs.pdf

Your questions are not legal questions. You should contact your homeowner's insurance company agent to find out what your current policy covers and what additions need to be made to your policy to cover a home-based food company. Your agent can advise you on what policy will cover you, and on how much liability insurance you should have, should the sale of your cookies, cakes and other baked goods result in a consumer lawsuit.

Good luck.

 

[c1298]

Thank you for your answer

 

[quincy]

Thank you for your answer

You're welcome, c1298.

As a note: I have relatives who started a food business from their home kitchen and had to expand rapidly to a commercial kitchen because of the demand for their product. I wish you equal success with your new business.