Cake and sweet shops could benefit from:

• Product liability insurance – Provides potential cover for claims arising from products you prepare and sell. If contaminated products or undeclared allergens require a recall, you may face additional costs and compensation claims if someone suffers injury or illness. Product liability insurance can cover eligible third-party claims, but recall costs are typically excluded unless additional cover is arranged.
• Public liability insurance – This can help protect your business against claims from customers, visitors or other members of the public who suffer injury or property damage in connection with your business activities.
• Employer’s liability insurance – In the UK, you have a legal obligation to have employer’s liability insurance in place if you employ any staff. This can help protect you for accidents, injuries, or illnesses your employees may sustain whilst working for you.
• Stock and contents insurance – This cover is intended for your stock, equipment and other contents used to prepare, package and sell your cakes and sweets. Depending on the cover selected, this could protect against damage or loss caused by events such as fire, flood, theft or vandalism. Cover may also be available for stock that is spoiled following an electrical fault or other insured event.
• Business interruption insurance – Insurance cover that may help your business recover financially if an insured event, such as fire, flood or theft, causes damage that means you have to temporarily close or reduces your ability to trade. Depending on the policy, this can help cover loss of income and certain ongoing business expenses while you get back up and running.
• All of the above will be subject to policy terms and conditions, exclusions and any applicable limits.