Glazed and Guarded: Types of Insurance Coverage for Donut Shops
Donuts are one of the most popular baked goods in the United States, so it makes sense that a person may want to open their own shop. It can be a great business to start and may allow for a lot of creativity.
If you intend to start your own donut shop, you should consider several factors such as your business plan, the overall cost, and how you plan to protect your business. You might want to obtain donut shop insurance to help protect yourself and your employees.
But what type of coverage should a donut shop have, and why is it important?
What Type of Coverage Should a Donut Shop Have?
Insurance may not be one of your first thoughts when you strike up the idea of starting a donut shop. The top priorities on your list are probably menu items, what kind of equipment you'll need, and finding investors. However, the kind of coverage you have can come in handy to help avoid business interruption.
For example, a customer or vendor could slip and fall in your donut shop. In that case, the right insurance can cover the cost associated with their medical bills.
An incident involving your donut shop equipment becoming damaged is another example where insurance could help. Business property coverage could help with repair and replacement costs to help protect your business from having to pay out-of-pocket to fix damaged items.
Alternatively, insurance can help cover medical costs should one of your employees get injured on the job. Making donuts typically requires working with hot equipment as well as frying oils. It can cause serious damage if an accident were to occur.
Business Owners Policy
Small business insurance is about protecting businesses as they grow. It can provide financial and legal protection at an affordable cost that can help you while you scale for business.
The three types of coverage you might want to look at are general liability, property, and cyber insurance. Each type covers different aspects of a business.
General Liability Insurance
General liability insurance can protect businesses from claims involving third-party property damage and bodily injuries that occur at the business location. Without this coverage, a third party could experience a slip and fall and claim that your business caused their injury.
Liability insurance allows for a suitable payout if someone is injured. Alternatively, it can also help cover the cost of legal bills if the business is forced to defend itself against a false claim. It all depends on what is included in your policy details.
Another little-known area that general liability insurance can cover is reputational harm. A person could sue your business, claiming copyright infringement or slander. Your policy could cover associated legal fees and the resulting settlement.
Property Insurance
Business property insurance helps to protect the physical assets in your store such as equipment, furniture, and fixtures. This includes items rented by your company.
Property insurance can cover the cost to either repair or replace stolen, lost, or damaged items. In some cases, you can expect to also get coverage for loss of income due to covered property. This includes operating and payroll expenses if your company is unable to operate as normal due to equipment loss.
Instead of providing an itemized list of your belongings, your business can provide the insurance company with an estimate of the overall value of your property. However, you may want to provide specific information on any high-value items you own.
Cyber Insurance
Cyber insurance can be essential for most businesses these days if you rely on the internet for your daily operations. This type of coverage helps to protect your business in case you suffer a computer-related crime. It can also help if you suffer a data breach or network security attack.
As a donut shop owner, you probably deal with several customers daily, and you likely keep a database of their information. In the case of a data breach, that information could suddenly become at risk.
In addition, a hacker could shut down your online access and limit your operations. This can be especially dangerous if your business relies on online payment processing services.
Workers' Compensation Insurance
One of the most important factors when purchasing donut shop insurance is considering how you plan to protect your employees.
While a donut shop may not be the most dangerous work environment, there are some everyday risks to take into account. Employees may suffer burns or cuts. They may trip and fall due to misplaced objects or clutter. There could be exposure to other occupational injuries and illnesses as well.
Although these situations may be rare, your business should always be prepared to cover work-related health expenses. It also means you may not have to worry about significant work disruptions due to lack of funds since your business could be protected from financial risks associated with these scenarios.
Workers' Compensation coverage could cover things like missed wages, ongoing support, medical expenses, and disability. It can also comply with state laws, so your business doesn't incur a penalty or fine.
Get Your Donut Shop Insurance Today
What type of insurance should a donut shop have? At the very least, you might want to consider a Business Owners Policy as it can provide general liability, property, and cyber insurance. Workers' Compensation can also be a necessity if you plan to hire employees aside from yourself.
PolicySweet® can help you with your donut shop insurance. All you need to do is tell us about your business and wait for your free quote.
Start a quote online now or contact us today if you have any questions.