Buy Coffee Shop Insurance

Coffee shop insurance is a type of business insurance that provides coverage for a coffee shop or cafe. It typically includes coverage for property damage, liability, and business interruption.

It may also include coverage for things like food spoilage, equipment breakdown, and employee injuries. The specific coverage options will vary depending on the insurance provider and the policy chosen by the coffee shop owner.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small coffee shops ranges from $37 to $59 per month based on location, size, payroll, sales and experience.

Coffee shops, like any other business, need insurance to protect themselves from potential financial losses and legal liabilities. Here are a few reasons why coffee shops need insurance:

Property damage: A fire, flood, or natural disaster can damage the coffee shop's physical property and equipment, leading to costly repairs. Insurance can cover these damages and help the business get back on its feet quickly.

Liability: If a customer slips and falls in the coffee shop, they may file a lawsuit against the business for their injuries. Insurance can cover the legal fees and damages associated with such a lawsuit.

Employee injuries: If an employee is injured while working at the coffee shop, their medical bills and lost wages can add up quickly. Insurance can cover these costs, helping to protect the business from financial strain.

Business interruption: If the coffee shop is forced to close temporarily due to a natural disaster or other unexpected event, insurance can help cover the lost income and expenses during that time.

In short, insurance helps coffee shops protect themselves from unexpected events that can have a major impact on their business. Without it, coffee shops may be at risk of financial ruin in the face of unexpected events.

Commercial Property

The first type of 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 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 Compensation

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 coffee shop insurance options that you may want to consider as well if you have a 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:

Commercial Auto

You might need commercial auto insurance if you're driving company vehicles and doing work for your 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.

Equipment Insurance

There are some pretty big investments you have to make when you open a 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

Utility insurance is another little-known option that is available to business owners. Utility insurance can protect you against various utility hazards and damages.

Spoilage Insurance

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.

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.

Coffee shops can be sued for a variety of reasons, including but not limited to:

• Slip and fall accidents: If a customer slips and falls on a wet floor or a spilled drink in a coffee shop, the business owner may be held liable for their injuries. A general liability insurance policy can cover a coffee shop owner's legal expenses and any damages awarded to a customer who is injured in a slip and fall accident on the premises.
• Food poisoning: If a customer becomes ill after consuming food or drinks from a coffee shop, the business owner may be sued for negligence or product liability. A product liability insurance policy can protect a coffee shop owner from legal action taken by a customer who becomes ill after consuming their products.
• Intellectual property infringement: If a coffee shop uses images, logos, or music without obtaining the proper permissions or licenses, the owner may be sued for copyright or trademark infringement. A commercial general liability policy can provide coverage for legal expenses and damages in the event of a copyright or trademark infringement lawsuit.
• Discrimination: If a coffee shop discriminates against customers or employees on the basis of race, gender, religion, or other protected classes, they may face legal action.
• Employee injuries: If an employee is injured on the job, they may sue their employer for workers' compensation or other damages. Workers' compensation insurance can help cover an employee's medical expenses and lost wages if they are injured on the job, and can protect the coffee shop owner from being sued for damages by the employee.

In each of these examples, having the right insurance coverage can help a coffee shop owner pay for legal fees and any damages awarded to the plaintiff.

Overall, insurance can provide coffee shop owners with peace of mind and protection against unexpected legal costs and damages that could potentially bankrupt their business.