Insurance for Candy Stores

What is a candy or confectionery store insurance? Why is it critical, and how to get the right fit coverage?

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Insurance for Candy Store

Understanding Why Candy Confectionery Stores Need Insurance

Whether a candy distributor, confectionery wholesaler, or chocolate distributor, the business of selling and serving candy or confectionery goods to customers comes with risks distinct from the risks common to other retail stores. These businesses are different from restaurants where cooking is involved, here we are addressing those operations where cooking or preparation is not done on the same premises. Candy and confectionery store owners can have an insurance consultant guide them on how to package their insurance policies to mitigate their business risks.


Potential Business Risks


The risks that can arise from the operations of candy or confectionery stores or distributor businesses include:

  • Injuries to employees, customers, and the public
  • Omissions, errors, oversight, and negligence in the manner the candy or confectionery store or distributor conducts its operations
  • Loss of or damage to candy or confectionery store property
  • Claims of third-party property damage liability
  • Advertising injury
Candy Confectionery Store Insurance

A candy store or distributor’s insurance can help protect the candy or confectionery business from the risks of loss and liabilities.

Recommended Policies

To protect a confectionery store or distributor’s business from the probable risks, they may need a mix of relevant insurance policies. An insurance agent can assist them in selecting the most appropriate policies from the following list:

Business Owner’s Policy (BOP)

This program includes basic insurance policy like general liability insurance, commercial property insurance, and business income policy, made available at an affordable premium. They can create the right-fit package by adding the required coverages to the basic BOP.

General Liability Insurance

This policy includes the following coverages and advertising injury.

  • Premises Liability: This relates to claims by customers, vendors, or the public against bodily injuries and damage to third-party property occurring on the business premises.
  • Products Liability: This insurance protects the stores from claims or suits arising from a bodily injury or property damage that occurred to the customer from the candy, confectionery, or chocolate products they make, sell or distribute.
  • Completed Operations: A policy that can safeguard the store owners from customer claims for damages occurring after they have completed an order or service, like party-hosting or catering.

Commercial Property Insurance

Business assets, including buildings and other assets, like the inventory of candy, confectionery, chocolates, and ingredients, warehouses, work equipment and tools, furniture, and office equipment are protected from loss arising from covered perils, such as fires, lightning, burglary, vandalism, tornado, etc.

Business Interruption Policy

Business assets, including buildings and other assets, like the inventory of candy, confectionery, chocolates, and ingredients, warehouses, work equipment and tools, furniture, and office equipment are protected from loss arising from covered perils, such as fires, lightning, burglary, vandalism, tornado, etc.

Commercial Umbrella Policy:

This insurance makes good on the claim that is over and above the coverage of general liability, employer’s liability, or commercial auto insurance once these policies reach their limit. For example, commercial umbrella coverage can pay the excess claim amount if a claim or settlement exceeds the underlying policy limit.

Workers’ Compensation Insurance

The policy coverage compensates for employees’ medical costs and a percentage of lost wages arising from work-related injuries and illnesses. This coverage is ideal to have even if it is not required by law, as it protects the business against having to pay the statutory benefits required for workplace injuries, out of pocket.

Inland Marine Insurance

A policy to pay for the covered loss or damage during the transportation of candy or confectionery and ingredients, equipment, supplies, and other items from one location to another location or simply while items are not at the business location- like if at a trade show.

Business Auto Policy

This provides protection from liabilities arising from accidents that involve the vehicles owned by candy or confectionery stores. When the driver of the company owned vehicle is at fault for an accident that causes property damage or bodily injury to a third-party, this policy will respond to claims or lawsuits. The business’s vehicles can also be covered with comprehensive and collision coverage that pays for repair or replacement due to things like theft, flood, vandalism or collision to name a few.

Other Policies to Consider for Candy or Confectionery Stores

Cyber liability insurance: This policy helps protect chocolate shops and candy stores from claims arising from data breaches, data losses, cyberattacks, and leakage of sensitive information.

Crime coverage: Theft, forgery, dishonesty, and fraudulent acts committed by employees, customers, or the public are protected by this insurance.

Employment practices liability insurance: Employees - current or former - can initiate a lawsuit for claims that include:

  • Sexual harassment
  • Illegal termination
  • Discrimination of employees
  • Breach of employment contract
  • Failure to employ or promote
  • Wrongful discipline
  • Causing emotional distress
  • Denial of career opportunity

Comprehensive Costs

The following factors, among others, determine the cost of policies that comprise the total package for a candy or confectionery store or distributor:

  • Annual sales
  • The employee count and annual payroll
  • The store location and number of stores and warehouses
  • Value of assets, including building, equipment, and property insured
  • Claim history
  • Types of insurance coverage, coverage limits, and deductibles

The number and type of policies the candy or confectionery store owners select, along with the above factors, will influence the total cost of the Candy or Confectionery Store or Distributor Insurance program.

How to Buy Candy or Confectionery Stores Insurance?

The store owners can request quotes for insurance policies by clicking here, or they can call us directly to discuss the requirements with an insurance agent who will assist them in selecting the best option.

Benefits of Engaging an Insurance Advisor

Independent insurance advisors help the store owners find the right insurance for retail stores, including candy or confectionery vendors and distributors. In addition, the team provides professional support during the claim process. Insurance Advisor has a nationwide team of licensed insurance agents specializing in business insurance for various businesses. They can be trusted advisors and information sources for the candy and confectionery store owners’ commercial insurance needs, including Candy or Confectionery Store or Distributor Insurance. They combine the relationship of a traditional agent with the flexibility and convenience of online insurance services.

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