Owning a bakery is a rewarding venture.

You’ve got freshly baked bread, delicate pastries, and happy customers lining up for their morning coffee and croissant.

But foodborne illness claims can quickly sour the joy of running your business. 

A single incident could lead to costly legal battles or a tarnished reputation.

To face the unique challenges bakeries face, getting the right Bakery Business Insurance matters.

Let’s explore practical steps and insurance solutions to keep your bakery business thriving. 

The Real Risk of Foodborne Illness in Bakeries

Foodborne illnesses, such as salmonella infection leading to gastroenteritis, can strike even the most careful bakeries. 

A contaminated ingredient or a lapse in hygiene can lead to customer complaints, legal claims, public health scare, or worse, outbreaks.

According to Food Standards Australia New Zealand (FSANZ), around 4.7 million cases of foodborne illnesses happen in Australia every year, with unsafe food causing over 47,000 hospitalisation and 38 fatalities. 

Small businesses, including bakeries, are often in the spotlight due to having a direct-to-consumer model.

If a customer claims your baked goods made them sick, you could face:

Paying for lawyers or settlements, even if the claim isn’t proven.

Temporary closure during investigations or recalls.

Negative online reviews or media coverage that drive customers away.

Non-compliance with FSANZ regulations can lead to hefty fines.

The right insurance coverage can help manage these risks, but prevention is just as critical. 

Let’s look at how you can minimise the chance of a claim.

Practical Ways to Reduce Foodborne Illness Risks

Taking proactive steps can lower the likelihood of foodborne illness and strengthen your position if a claim arises. 

This can also help in reducing the cost of premiums.

Here are five key practices you can implement in your bakery:

1. Maintain High Hygiene Standards

• Train staff on proper handwashing, sanitising surfaces, and cleaning equipment like mixers and ovens.
  
  
• Follow FSANZ food safety standards, including regular audits of your kitchen.
  
  
• Use food-safe cleaning products and schedule daily cleaning routines.

2. Choose Trusted Suppliers

• Source ingredients from suppliers with strong safety records and certifications, such as the food safety and risk assessment plan Hazard Analysis Critical Control Points (HACCP).
  
  
• Verify that perishable items, like dairy or eggs, are delivered at safe temperatures (e.g., below 5°C for refrigerated goods).
  
  
• Keep supplier invoices and batch numbers for traceability in case of an issue.

3. Control Food Preparation

• Prevent cross-contamination by using separate tools for raw ingredients (e.g., eggs) and ready-to-eat products (e.g., pastries).
  
  
• Store baked goods at appropriate temperatures to avoid spoilage, following FSANZ guidelines.
  
  
• Check that ovens and cooling racks are always clean to prevent contamination during baking.

4. Invest in Staff Training

• Enroll your team in food safety courses, such as those offered by Safe Food Australia or Technical and Further Education (TAFE) NSW.
  
  
• Conduct regular refresher sessions to keep food safety top of mind and to ensure your team’s up-to-date.
• Foster an open environment where staff report potential risks, such as expired ingredients.

5. Don’t Forget to Document Everything

• Keep detailed logs of cleaning schedules, ingredient deliveries, and storage temperatures.
  
  
• Use a food safety checklist to ensure compliance with local regulations.

Remember: These records can be critical evidence if a customer makes a claim against your bakery.

By making these practices part of your daily routine, you’re not only keeping customers safe but also building a solid foundation to handle any potential claims.

Why Product Liability Insurance Is a Must for Bakeries

No matter how careful you are, mistakes can happen.

A supplier might send a bad batch of flour, or a customer might mistakenly blame your bakery for an illness. 

Public and Products Liability Insurance is designed to cover these risks.

As an insurance broker, we help bakery owners find policies that fit their specific needs. 

Here’s what Public and Products Liability Insurance can do for you:

Pays for legal fees if a customer sues you, even if the claim is dismissed.

Covers settlements or medical bills if a customer proves they were harmed.

Helps with costs if you need to remove unsafe products from sale.

Also, take note of these key features to consider:

1. Protection against financial losses.
   
   
2. Flexible limits to match your bakery’s size and sales volume.

A tailored Public and Products Liability policy ensures you’re prepared for unexpected claims, letting you focus on your bakery business.

A Cautionary Tale: When a Claim Hits Home

Picture this: 

A customer buys a tart from your bakery and later claims it caused food poisoning. They demand $15,000 for medical bills and lost income, and the story spreads on social media. 

This could be very harmful to your business.

That’s why keeping meticulous records of your food safety practices is important as it will show you followed FSANZ standards. 

Plus, your Product Liability Insurance will provide coverage for legal fees.

As a result, a claim can be resolved without crippling your business.

This example highlights the importance of combining good practices with insurance. 

Without both, a single claim could put your bakery business in danger. 

How Can Tank Insurance Help Support Your Bakery

Here at Tank Insurance, our role is to guide you in finding coverage that matches the needs of your bakery. 

Here’s how we can help:

• Help You Find the Best Policy: We compare options from multiple insurers to match your risk level and budget.
  
  
• Simplify Complex Terms: We explain policy details in plain English, so you’re not left confused.
  
  
• Customise Coverage: Whether you run a corner café or supply supermarkets, we can assist in customising policies to suit your risks.
  
  
• Assist with Claims: We guide you through the claims process, ensuring a smooth experience.

Bake Worry-Free with the Right Protection

Foodborne illness claims can disrupt the operations of your bakery, affecting your reputation and the trust of your customers. 

By adopting strong food safety practices and securing Product Liability Insurance, you can protect your business and your peace of mind. 

As an insurance broker, our team at Tank is ready to help you find coverage that lets you focus on what you do best.

Don’t wait for a claim to catch you by surprise. Drop us a line today to keep your bakery safe and successful.