Ice Cream Shop Insurance Policy Information
Ice Cream Shop Insurance. Ice cream is quite possibly the most universally beloved confectionery. To make sure the smiles keep coming from happy customers, you depend on your equipment and your employees. But what if your ice cream equipment breaks down or an employee is injured on the job? Would your insurance provide enough coverage to pay for repairs or medical costs?
Ice cream parlors sell ice cream and related products, and may operate on a seasonal basis. While some offer table service, others have customers place orders and pick them up at a counter. Some offer sandwiches or other types of fast food items and may have a cooking exposure.
There's always a chance of possible loss, damage or theft of your utensils, damage to your kitchens, or an expensive claim if an employee or member of the public is injured or worse due to your work. That's why it's important to manage these risks and keep your business safe with a tailored ice cream shop insurance policy.
Ice cream shop insurance protects your parlor from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked ice cream shop insurance questions:
- What Is Ice Cream Shop Insurance?
- How Much Does Ice Cream Shop Insurance Cost?
- Why Do Ice Cream Shops Need Insurance?
- What Type Of Insurance Do Ice Cream Shops Need?
- What Are Ice Cream Shops Risks & Exposures?
- What Does Ice Cream Shop Insurance Cover & Pay For?
What Is Ice Cream Shop Insurance?
Ice Cream Shop Insurance is a type of business insurance that provides coverage for a variety of risks that ice cream shops may face, including property damage, liability, and loss of income.
It may include coverage for things like damage to equipment or inventory due to fire, theft, or natural disasters, as well as liability coverage for accidents that may occur on the premises. It can also include coverage for lost income if the shop is forced to close temporarily due to a covered event.
How Much Does Ice Cream Shop Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small ice cream shops ranges from $27 to $39 per month based on location, size, payroll, sales and experience.
Why Do Ice Cream Shops Need Insurance?
Ice cream shops need insurance for several reasons. One of the main reasons is to protect the business from financial losses due to accidents or natural disasters. For example, if there is a fire in the shop, the insurance policy would cover the cost of damages and help the business get back on its feet.
Another reason ice cream shops need insurance is to protect the business from liability. If a customer were to slip and fall in the shop, the business could be held responsible for their injuries. A liability insurance policy would cover the cost of any medical bills or legal fees associated with the incident.
Additionally, ice cream shops need insurance to protect their employees. Workers' compensation insurance covers the cost of medical treatment and lost wages if an employee is injured on the job. This is important to have in place to ensure that employees are protected and the business is not faced with costly lawsuits.
Overall, insurance is an important aspect of running a successful ice cream shop. It provides protection and financial security for the business, its employees, and its customers. Without it, the risks of operating a business can be too great to bear.
What Type Of Insurance Do Ice Cream Shops Need?
The risks for an ice cream store can be very wide because of the many different exposures involved with your business activities. Before paying costly fees for an attorney's advice, we can at least help you to identify some of the potential claims that could arise and the ice cream shop insurance coverages that would protect you in the event of such claims:
Ice cream shop insurance is suitable for anyone who owns or manages an ice cream parlor, shop or cafe selling ice cream and frozen treats. Compared to a standard business insurance policy, a ice cream shop insurance meets the needs of the hospitality industry.
For example, you will probably find your business is seasonal so you carry different levels of stock during the year. This policy can be tailored to your requirements so you're only paying for coverages that are relevant to your operation.
Food Contamination Insurance: Many ice cream stores also have a deli or restaurant, where you are serving hamburgers or chicken sandwiches. Cross-contamination of raw meat with ice cream could cause serious illness among your patrons. Protect your business with the food contamination policy.
Commercial General Liability: General liability Insurance protects your business from various third party liability claims:
- Premises Liability - Protects you in the event that one of your customers sustains an injury while on your premises. An example would be a child dropped is ice cream on floor and another customer slipped and fell on it.
- Product Liability - If one of the products you sell causes a an illness or injury, this coverage will help pay for your legal and court fees if a lawsuit should arise.
Equipment Insurance: What do you do when your dispensing machines stop working? Or if your store was vandalized... Pretty much, you have nothing to sell. Unless of course you have all risk equipment insurance. All risk means that you are protected from any peril that damages your equipment. You do not need to specify which perils you are protecting your business from - all risks means just that - complete protection.
Business interruption: This ice cream shop insurance policy provides coverage to make sure that if something unfortunate were to happen, you won't be out of pocket. For instance, if you suffered fire damage at your premises meaning you were unable to open, business interruption will typically cover your gross profit and fixed expenses while we get you back on your feet. This means you shouldn't be out of pocket if the worst does happen.
Workers' Compensation: Workers comp is required in most states for any non-owner employees. Protect yourself with workers compensation that covers employees' occupational injury expenses.
Employee Dishonesty: This insurance coverage protects your business from financial loss in the event that one of your employees steals from your business or engages in other illegal behavior while working for you.
Cyber Liability: If you also retail the ice cream through your website, Facebook or any other channel, you may be aware that you are at risk of a variety of cyber crimes. Hackers can get into your account and forge payments, or steal business or customer financial information and use it for illegal means. Cyber liability insurance will protect your business from losses incurred from crimes like these.
Commercial Crime: Unfortunately, crime occurs in many retail stores, including ice cream stores. Crimes you are open to include theft, shoplifting, fraudulent payment for merchandise, embezzlement, and vandalism that destroys your stock. Since this is a significant risk, you should protect your store with crime insurance. If an employee steals money from the cash register or someone vandalized your property, you have insurance to cover the loss.
Business Owners' Policy (BOP): BOPs are great for ice cream stores because they are affordable and they offer both the general liability, business personal property and business interruption on a single bundled policy. With this insurance policy, you can obtain coverage in case a patron gets injured as well as protect your business against property claims.
Commercial Umbrella: This is a coverage that adds excess coverage to your other liability policies. If you reach the maximum limits of coverage on an insurance claim, a commercial umbrella provides additional coverage to help prevent your ice cream store from having to pick up the balance.
What Are Ice Cream Parlors Risks & Exposures
Property exposures are from electrical wiring, cooking, refrigeration units, and heating and air conditioning systems. Wiring must be up to code, well maintained and adequate to support freezers. If ammonia is used as a refrigerant, there should be a leakage detection system to prevent an explosion. Refrigeration equipment must be inspected and maintained on an ongoing basis.
While cooking may be limited to microwave and ovens, there may be grills and deep fat fryers. These must be protected with automatic fire extinguishing equipment, shutoff valves, hoods, and filters. The kitchen must be kept clean and grease free to prevent fire spread. Filters should be regularly changed. Spoilage losses can be severe if the refrigeration equipment malfunctions or loses power.
Controls should be in place. Ice cream and other food items are highly susceptible to damage. A small fire or power outage can cause all stock to be condemned as unfit for consumption or sale. Loss of business income can be high after a loss, particularly if operations are seasonal.
Equipment breakdown exposure is due to the reliance of the business on properly maintained and electrically powered freezers. These must be regularly inspected and maintained.
Premises liability exposures are moderate due to public access to the premises. When seating is provided, customers may pick up their orders at a counter and carry them to their tables, generating spills that can result in slips and falls. Housekeeping must be excellent and spills must be cleaned up promptly. If hot beverages are served, temperatures 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 purchases 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 if operations are year round, and generally level and free of exposure to slip and falls.
Outdoor security and lighting must be consistent with the area. Seasonal operations may present an attractive nuisance hazard when not in use. There should be adequate security during the off-season. Lists of ingredients should be posted to prevent allergic reactions.
Products liability exposure is high due to the possibility of food poisoning, contamination and allergic reactions from food carried off premises for consumption. Monitoring the quality of food received, posting lists of ingredients, and maintaining proper storage temperature can reduce this exposure. The stock should be regularly rotated so older products are sold first. Out of date stock must be removed on a regular basis and discarded.
Workers compensation exposures are high due to slips, falls, cuts, burns, puncture wounds, foreign objects in the eye, frostbite from working with frozen food, heavy and awkward lifting, and interactions with customers. All walk-in freezers must have inside escape releases. Food handling can result in passing bacteria or viruses, resulting in illness. Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers.
Controls must be in place to maintain, check, and prevent such injury. As with all retail businesses, hold-ups are possible so employees should be trained to respond in a prescribed manner. 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.
Crime exposures are from employee dishonesty and loss of money and securities. Criminal background checks should be conducted on any employee handling money. Most transactions are handled with cash. Money should be removed from the cash drawer at regular intervals and either deposited at the bank or stored in an on-premises safe. There must be a separation of duties between employees handling deposits and disbursements and reconciling bank statements.
Inland marine exposures include computers for tracking inventory and valuable papers and records for employee and supplier information.
Business auto exposures are generally limited to hired and nonowned liability for employees running errands.
What Does Ice Cream Shop Insurance Cover & Pay For?
There are several reasons why ice cream shops may face lawsuits, including:
- Foodborne illnesses: If a customer gets sick from consuming contaminated ice cream, they may sue the shop for negligence.
- Slip and fall accidents: If a customer slips and falls on a wet floor or on an uneven surface inside or outside the shop, they may sue for medical expenses, lost wages, and other damages.
- Allergic reactions: If a customer has an allergic reaction to an ingredient in the ice cream that was not properly labeled, they may sue for damages.
- Intellectual property disputes: If the shop is accused of infringing on another company's trademark or copyright, they may be sued for damages.
- Employee lawsuits: If an employee is injured on the job or feels they have been mistreated or discriminated against, they may sue the shop for compensation.
Insurance can help protect ice cream shops from these and other types of lawsuits. Here are some examples:
General liability insurance: This type of insurance can help cover legal fees, settlements, and judgments if the shop is sued for bodily injury, property damage, or advertising injury. For example, if a customer sues the shop for foodborne illness, general liability insurance may help cover the cost of defending the lawsuit and paying any damages awarded.
Product liability insurance: If a customer sues the shop for a product defect, contamination, or mislabeling, product liability insurance can help cover the cost of legal fees, settlements, and judgments.
Workers' compensation insurance: If an employee is injured on the job, workers' compensation insurance can help cover their medical expenses, lost wages, and other related costs. For example, if an employee slips on a wet floor and injures themselves, workers' compensation insurance can help cover their medical bills and any lost wages.
Intellectual property insurance: This type of insurance can help protect the shop from lawsuits related to trademark or copyright infringement. For example, if the shop is accused of using a logo that is too similar to another company's logo, intellectual property insurance can help cover the cost of defending the lawsuit and paying any damages awarded.
By having the appropriate insurance policies in place, ice cream shops can protect themselves from potential lawsuits and the financial damages that come with them.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5812 Eating Places
- NAICS CODE: 722515 Snack and Nonalcoholic Beverage Bars
- Suggested Workers Compensation Code(s): 9083 Restaurant: Fast Food
Description for 5812: Eating Places
Division G: Retail Trade | Major Group 58: Eating And Drinking Places | Industry Group 581: Eating And Drinking Places
5812 Eating Places: Establishments primarily engaged in the retail sale of prepared food and drinks for on-premise or immediate consumption. Caterers and industrial and institutional food service establishments are also included in this industry.
- Automats (eating places)
- Box lunch stands
- Buffets (eating places)
- Carry-out restaurants
- Coffee shops
- Commissary restaurants
- Concession stands, prepared food (e.g., in airports and sports arenas)
- Contract feeding
- Dairy bars
- Diners (eating places)
- Dining rooms
- Dinner theaters
- Drive-in restaurants
- Fast food restaurants
- Food bars
- Food service, institutional
- Frozen custard stands
- Grills (eating places)
- Hamburger stands
- Hot dog (frankfurter) stands
- Ice cream stands
- Industrial feeding
- Lunch bars
- Lunch counters
- Oyster bars
- Pizza parlors
- Refreshment stands
- Restaurants, carry-out
- Restaurants, fast food
- Sandwich bars or shops
- Snack shops
- Soda fountains
- Soft drink stands
- Submarine sandwich shops
- Tea rooms
- Theaters, dinner
Ice Cream Shop Insurance - The Bottom Line
Owning an ice cream parlor is a reliable and fun way to earn a living. Ice cream is popular with all ages and can sell year round. Shops have a lot of activity in them, particularly during the busy seasons, and this introduces to more potential risks to your business.
You can protect yourself from unexpected events, risks and hazards by carrying the right types and amounts of commercial insurance.
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
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
- Specialty Food And Restaurants
The food service industry is a vital part of the economy and plays a crucial role in providing food to individuals and businesses. However, it is also a high-risk industry that is prone to numerous potential liabilities and risks. That's why it's important for food service businesses to have insurance in place to protect themselves against financial losses and legal issues.
One of the main reasons the food service industry needs commercial insurance is to protect against liability claims. When running a food service business, there is a risk of someone getting sick or injured due to food poisoning or food allergies. Insurance can provide coverage for these types of claims, helping to cover the costs of legal fees and damages.
Another reason the food service industry needs insurance is to protect against property damage. This can include damage to the business's physical location, such as from a fire or natural disaster, or damage to equipment, such as kitchen appliances. Commercial insurance can help cover the costs of repairs or replacement, ensuring that the business can continue to operate smoothly.
Additionally, commercial insurance can provide coverage for losses due to unexpected events, such as theft or vandalism. This can be especially important for food service businesses, as food products and equipment can be expensive to replace.
The bar and liquor industry is highly susceptible to accidents and injuries. With the presence of alcohol, there is a higher risk of slip and fall accidents, fights, and other mishaps that could result in serious injuries to employees or patrons. Insurance can provide coverage for these types of incidents and help protect the business from financial liability.
In summary, business insurance is essential for the food service industry due to the numerous risks and liabilities that can arise. It can provide financial protection against potential losses and legal issues, helping businesses to operate safely and securely.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Spoilage, Equipment Breakdown, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Nonowned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.