Do Cottage Food Operators Need Insurance?

By: Eric Greenbaum

A lot of home bakers ask us whether they need to have insurance to operate their cottage food business. The simplest answer is that insurance is not required but it’s a good idea.

At the time of this writing, Cottage Nosh is not aware that any state’s Cottage Food laws require operators to have insurance. This may change and you, as a Cottage Food Operator, should make it your practice to keep current on your state’s laws.

Notwithstanding the lack of formal requirements, having insurance for your Cottage Food Business is a good idea. Despite your best efforts and diligence, there may be a circumstance where a customer claims that they’ve had an allergic reaction to something you’ve made. It’s possible that a customer will claim that something you made caused them to get sick. In those situations having insurance will protect your business and protect your assets.

Insurance policies crafted for the unique needs of home food businesses are available at very reasonable rates. Check out our suggestions in our blog post: Insurance 101 for Cottage Food Operators.


Eric is a baker, lawyer, scientist, and gardener. He enjoys developing and training health regulations and operating procedures. His favorite nosh is apple blueberry tart.