Equipment breakdown insurance is an essential risk management tool for all bakeries. This type of insurance for bakeries can cover the cost of repairing or replacing equipment that breaks down. Bakery Insurance can also be extended to cover spoilage of stock, which is crucial if you store refrigerated/frozen meat and other products for pies, pastries, and other baked goods; or if you bake in large quantities with costly ingredients.
Insurance for bakeries
What Does Bakery Equipment Breakdown Insurance Cover?
| Equipment breakdown insurance can cover sudden and accidental breakdowns of nearly all of the equipment bakers use on a daily basis. This can include the following:
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In addition, one of the most important additional insurance cover options for a baker’s consideration is spoilage of stock, which will affect most bakeries regardless of size. |
What Doesn’t Bakery Equipment Breakdown Insurance Cover?
| Like all insurance policies, there will be aspects to consider where coverage will not be available, and some of the typical exclusions will include: |
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How Does Equipment Breakdown Insurance Work?
| Equipment breakdown insurance works by reimbursing you for the cost of repairing or replacing your broken equipment.
| If it ever comes time to make a claim, like with all insurance policies, there will be certain pieces of information the insurer will require, including (but not limited to) proof of the damage, a repair invoice, or a receipt for a new piece of equipment/replacement food stock. |
Cover for Spoilt Stock
| The addition of spoilage of stock cover can also help reduce anxiety when, for example, a fridge breaks down and ruins your refrigerated items. This bakery insurance coverage ensures you are adequately compensated to replace the damaged stock. | Brief example – you are a small to medium sized bakery and rely heavily on your commercial fridge to store food items. Overnight, your fridge fails, and the next day you must throw out thousands of dollars’ worth of spoiled items. Having the right equipment breakdown insurance policy in place would assist as it would pay for repairs to the fridge and would also reimburse you for the cost of the spoiled items. |
But what about Business Interruption?
| It can be the case that when a key piece of machinery breaks down, it’s more than just a simple fix-it job. Quite often, as a result of machinery breakdown, your profits may be adversely affected as well as the ability to meet payroll. There might also be additional operational costs during the repair or replacement of the machinery. | The good news, some machinery breakdown insurance will extend to include business interruption, although the extra cover will typically attract a higher premium. Your specialist insurance adviser will be able to assess the available options, and not all insurers will be the same. |
Reducing Risk For Your Bakery
| Whilst equipment breakdown insurance is a fantastic way to address one of the challenges in running a bakery; it is also essential to implement a few basic risk management strategies to keep your operation running smoothly:
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How Do I Get Bakery Insurance?
| If you’re a baker, then you know how vitally important your equipment is – it’s the difference between trading or not.
KBI has partnered with The National Baking Industry Association to provide tailored and discounted insurance for bakeries. | To get a customised insurance quote tailored for bakeries, click here. |
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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