Frequently Asked Questions About
Commercial General Liability Insurance
How much does small business insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number. (read more)
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it. (read more)
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Pennsylvania Coffee Shop Insurance
Pennsylvania Coffee Shop Insurance. Coffee shops prepare and serve coffee to their customers. Most do not have table service. Customers must place orders and pick them up at the counter. In addition to espresso, lattes, cappuccinos and other coffee-based drinks, teas, snacks, sandwiches and packaged coffee beans or fresh ground coffee may be sold.
Non-food-related gift items such as books, CDs, travel mugs, or pottery may be available. Coffee shops may offer free internet service, live entertainment, art exhibits and similar activities.
They may offer outdoor seating. A few operations serve beer, wine, or other alcoholic beverages. While many shops are franchised, there are local and regional chains as well as totally independent shops.
Owning a cafe can be one of the most rewarding things that you can do. Many people enjoy coffee shops because they are able to socialize with customers and provide a product that everyone wants. Having a strategically-placed coffee shop can be an extremely lucrative venture as well. But you are going to have to have the right Pennsylvania coffee shop insurance if you own a cafe.
Pennsylvania coffee shop insurance protects your cafe from legal liability with rates as low as $37/mo. Get a fast quote and protect your business now.
Types Of Coffee Shop Insurance
Let's look at the most important types of Pennsylvania coffee shop insurance. There are a lot of insurance options out there but there are only a few that are considered vital to any food service business - or a PA coffee shop business in particular.
The first type of Pennsylvania coffee shop insurance is property insurance. Commercial property insurance protects your premises as well as the equipment and fixtures inside of it from disasters like plumbing mishaps, fires, weather events and more. The exact protection you will have differs from policy to policy.
Commercial General Liability
Liability insurance is also absolutely vital when it comes to owning a coffee shop. If there are people visiting your premises, especially a location where wet floors or high temperatures can be a concern, you want liability insurance. General liability protects your business when things like slips and falls, burns or other mishaps happen.
Business Income Insurance
Another important type of Pennsylvania coffee shop insurance is business income. This is a type of insurance that make sure that if your business is not making money for some unforeseen reason that you are still able to pay your bills and keep going until you can get back on track again. This is an unusual type of insurance to most people, but it is a handy option for those who want as much protection as possible.
Workers comp is required if you have employees working in your cafe (in most states). Workers compensation pays for employee medical treatment if they are injured on the job. Workers comp may also pay the money for lost wages if they are injured on the job and cannot work.
Additional Cafe Insurance Options
There are some additional Pennsylvania coffee shop insurance options that you may want to consider as well if you have a PA coffee shop. These are not necessarily required or even standard insurance options, but they can offer better protection and a more fully rounded insurance package. Let's take a look at each of them one by one:
You might need commercial auto insurance if you're driving company vehicles and doing work for your PA business. Whether it is you driving or an employee driving, you're going to need commercial auto insurance. Regular liability insurance does not cover business vehicle operation. Although most coffee shops do not have to worry about this, if you do delivery or have to pick up items for your store with a company vehicle then you may need commercial vehicle insurance.
There are some pretty big investments you have to make when you open a PA coffee shop. Depending upon what your menu offers, you may need a grill, a commercial walk-in cooler, countertop space, fixtures and various other types of equipment. You can actually get insurance that protects you in case your equipment quits working. This means that your business will be able to go on even if you have a major piece of equipment that fails.
Utility insurance is another little-known option that is available to PA business owners. Utility insurance can protect you against various utility hazards and damages.
When you own a business that serves food, one of the things that you have to worry about is food spoilage. But there is an insurance option for businesses that have to store fresh food on site that protects them in case of large-scale food spoilage.
Pennsylvania Cafe's And Coffee Shop's Risks & Exposures
Premises liability exposures are moderate due to public access to the premises. Customers move throughout the coffee shop with cups of coffee and other beverages, generating spills that can result in slips and falls. All spills should be cleaned up promptly.
Temperatures of hot beverages must be limited to reduce injuries due to scalding. Older patrons and those with mobility limitations are more prone to injury should a fall occur. Procedures should be in place to assist these customers in transporting beverages to their table. Floor covering must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Exits must be well marked, with backup lighting systems in case of power failure.
Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slips and falls. Outdoor security and lighting must be consistent with the area. Lists of ingredients should be posted to prevent allergic reactions.
Product liability exposures are from contamination, food poisoning and allergic reactions from food and beverages carried off premises for consumption. Appropriate sanitary measures and the posting of product ingredients are important. If the shop imports coffee or gift items directly, it has the exposure of a manufacturer or coffee retailer.
Workers compensation exposures are primarily due to slips, falls, puncture wounds, burns, foreign objects in the eye, heavy and awkward lifting, and interactions with customers. Food handling can result in passing bacteria or viruses, resulting in illness. As with all retail businesses, hold-ups are possible, so employees should be trained to respond in a prescribed manner. Espresso machines may explode if not monitored and properly maintained.
Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals. The employees tend to be minimum wage and turnover may be high. Company incentives to encourage long-term employment are positive signs of management control.
Property exposures are from electrical wiring, refrigeration units, coffee brewing equipment, and heating and air conditioning systems. All wiring should be current, up to code, and well maintained. Most coffee shops use an espresso machine, which is operated at elevated temperatures and is pressurized. Other equipment includes coffee grinders, steamers, blenders, and related or similar property.
Light cooking and baking may also be present but are not usually accompanied by any grease-laden vapors. Spoilage exposure is high if refrigerated goods are sold. A small fire or a power outage can cause all fresh and frozen goods to be condemned as unfit for consumption or sale.
Business income with extended time period coverage should be purchased. While clientele tends to be fairly loyal, they will switch after a major loss due to the lag time between the re-opening and the return to full operations.
Crime exposures are from employee dishonesty and money and securities. Criminal background checks should be conducted on any employee handling money. Most customers pay in cash. Money should be regularly stripped from the cash drawer and moved to a safe away from the door. Irregular drops should be made to the bank during the day to prevent substantial accumulations of cash. There must be a separation of duties between employees handling deposits and disbursements and reconciling bank statements.
Inland marine exposures include computers for tracking inventories and valuable papers and records for employee and supplier records. A fine arts floater will be needed if works of art are displayed for sale.
Business auto exposures are generally limited to hired and non-owned liability for employees running errands.
Protecting PA Coffee Shops
You should talk to a commercial insurance broker and find out exactly what you need for your coffee shop and what sort of insurance options are available. A good agent will be able to advise you on what you need and how you can save the most money by combining various types of business insurance.
Pennsylvania Economic Business Outlook & Commercial Insurance Requirements
While you might have a fantastic idea for a business, if you aren't setting up shop in the right PA location, there's a good chance that you won't see the success that you hope to achieve. With that said, it's important that you have an understanding of the economic status of the state that you are thinking about doing business in. It's also important for you to know what type of rules and regulations regarding insurance are in place in that state.
If you are thinking about doing business in the Commonwealth of Pennsylvania, keep on reading to find out some valuable information that you can use to make the best choices for your operation.
Pennsylvania's Economy Now And Into The Future
In terms of the economy, Pennsylvania's future looks pretty bright. It boasts the sixth largest economy in the United States. It is also home to some of the largest private and public organizations in the nation, as per sales.
The job market is expected to see steady growth in Pennsylvania during the 2019 calendar year. That rate is expected to be 1 percent, which is a marked increase from previous years. This is largely due to the high pool of educated laborers that reside in the state. Currently the unemployment rate is 4.9 percent, which is on-par with the rest of the nation. It is believed that the unemployment rate will continue to drop as more jobs are added.
For business owners, there are several industries that will afford success. The food products industry, particularly related to agriculture, contributes largely to the state's economy. This is expected to continue moving forward throughout the 2019 calendar year. Other industries that are forecasted to see growth include:
- Printing & Publishing
If you are thinking about doing business in PA, working in one of these industries will likely afford you success.
Insurance Requirements For Businesses In Pennsylvania
The Pennsylvania Insurance Department regulates insurance in PA. Business owners are legally required to carry workers compensation insurance. This type of coverage is a must for any business that employs any W2 part-time or full-time employees, and for employees that are either hourly or salaried. You must also carry PA commercial auto insurance if you plan on using a vehicle to conduct anything related to your business.
While commercial liability insurance is not required in Pennsylvania, it is still a wise idea to invest in. This type of coverage will protect you from the cost of any lawsuits that could potentially arise.
Additional Resources For Food Service Insurance
Learn about restaurants, bars, liquor stores commercial insurance coverages. See how small business food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.
- Bagel Shop
- Coffee Shop
- Concession Stand
- Grocery Store
- Liquor Liability
- Liquor Store
Bars, taverns, restaurants, cafeterias, and other eating and drinking places have significant insurance needs in three separate areas.
The first is property protection for physical damage to equipment, furnishings, building and supplies due to fire and other perils.
The second is premises liability coverage to protect customers due to slips, trips and falls on the premises, as well as for consumption of food products.
The final need is protection for employees due to frequent cuts, burns and other common employee injuries. Establishments that sell or serve liquor or other alcoholic beverages also need liquor liability coverage.
Slips and falls, along with customer illness due to being served tainted food or drink, are the primary liability exposures. The commercial general liability (CGL) is used to provide coverage for these exposures.
It is important to note that liquor liability coverage is excluded under the CGL form if a risk is in the business of serving alcoholic beverages. Many establishments in this category should therefore consider purchasing a separate liquor liability coverage form.
Restaurant kitchen equipment, inventory and dining room fixtures are common exposures for most eating and drinking places. Many of these establishments do not own the buildings they occupy but have long-term leases and have invested money in various improvements and betterments, including cooking equipment, dining room decorations and permanent fixtures.
There are major differences in the food service business and the very different exposures they present. There are many specific types of restaurants to cater to individual needs and tastes. There a several main commercial insurance classifications for food service.
Concessionaires: The most basic "eat on the run" type of restaurant is not classified as a restaurant at all but is referred to as a concessionaire. Class Code 11168: Concessionaires applies and the accompanying note states that all food and beverages must be sold through hawking or peddling. There can be no location to which customers walk up and purchase the food. This classification includes food sold at sporting events, exhibitions, and parks.
Caterers: Are very similar to restaurants with significant differences. The caterer prepares the meals at its own kitchen or commissary and then transports it to the locations where it will be served. Some final preparation may take place at the final location but the majority generally takes place at the caterer's location. The caterer's employees serve the meals and beverages and oversee the consumption of the food.
Restaurants: The way restaurants are categorized and classified uses the percentage of alcoholic beverage sales as the first criteria, followed by other features or operations.
Common to all of these categories is that entertainment-oriented venues such as nightclubs, cabarets, dance halls, discotheques, and comedy clubs must be separately classified and rated. This means that the sales that those entertainment activities generate must be broken out and rated separately from the sale or food and drink.
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