When the oven stops, so does the business
In the world of bakeries, every minute matters. A single piece of equipment — such as a malfunctioning oven or broken dough mixer — can halt production, spoil ingredients and lose loyal customers. For small business owners in Canada's competitive food landscape, the financial and operational impact of equipment failure is more than an inconvenience, it's a threat to your bottom line.
Real-world scenario: The $25,000 breakdown
Last year, a family-run bakery in Ottawa experienced a major equipment failure during their peak holiday season. Their industrial oven short-circuited, causing a three-day shutdown. Not only did they lose $8,000 in revenue, but they also had to replace the oven at a cost of $17,000.
Without comprehensive equipment insurance, recovery would've taken months. Luckily, their policy not only covered the repair but also reimbursed lost income, allowing them to keep staff paid and customers satisfied.
The stats don't lie
According to Statistics Canada data:
- 46% of small food businesses in Canada have experienced equipment failure in the past two years.
- Downtime costs bakeries an average of $3,000 per day, including lost revenue and wasted inventory.
- Only 38% of bakery owners have insurance that fully covers equipment failure and upgrades.
Beyond recovery: A proactive approach
Insurance shouldn't be a fallback — it should be a foundation for growth. At Gallagher, we help bakery owners stay ahead of disruptions. From routine maintenance checklists to advice on upgrading aging equipment, our insurance solutions are built for the long game.
Our customizable policies cover:
- Mechanical and electrical breakdowns
- Replacement costs for critical equipment
- Business interruption losses
- Equipment upgrades and retrofitting assistance
Peace of mind means productivity
Imagine being able to replace a key mixer the same day it breaks down or having access to funds to upgrade to more energy-efficient ovens before yours fail. That's the proactive power of partnering with Gallagher.
Let us help you protect the heartbeat of your bakery — your equipment — so you can focus on kneading, baking and delighting customers.
Learn more about these related products: