Internet Cafe Insurance

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Internet Cafe Insurance Policy Information

Internet Cafe Insurance

Internet Cafe Insurance. Internet cafes, also often called cyber cafes, are dedicated venues that allow customers easy access to the internet.

Internet cafes provide internet access while selling drinks and snacks for customers to enjoy while conducting their personal business online. The internet access may be offered on a time-based fee, or provided free to customers. Most do not have table service.

Customers must place orders and pick them up at the counter. Internet cafes may be used by people accessing their email while traveling (such as those provided in cruise ships or hotels) or by those without their own personal electronic devices.

In addition to coffees, teas, snacks, and sandwiches, non-food-related gift items such as books, CDs, or travel mugs may be available. A few operations serve beer, wine, or other alcoholic beverages.

Traditional internet cafes consist of desks lined with computers connected to high-bandwidth internet, in which customers simultaneously pay to use a computer and the Internet for a set period of time.

Coworking spaces - which either provide computers or invite their users to bring their own laptops - can, in many ways, be considered to be successors to the once ubiquitous internet cafes, along with LAN gaming centers that give serious gamers access to better and faster PCs.

The traditional model of internet cafe still thrives in some places, however, with truck stops and other areas frequented by travelers being an obvious choice.

If you own and operate an Internet cafe or are considering starting such a business, you will do everything you can to ensure that your venue thrives. You will also, however, face a number of hazards.

That is why it is essential to consider what types of internet cafe insurance policies are needed to protect their financial health.

Internet cafe insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked broom and brush manufacturing insurance questions:


How Much Does Internet Cafe Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for cyber cafes ranges from $37 to $59 per month based on location, services offered, revenue, claims history and more.


Why Do Internet Cafes Need Insurance?

Like any commercial venture, internet cafes are vulnerable to a wide range of perils. Some of the risks you face are common to all businesses, while others are unique to your branch of commerce.

Your internet cafe could, for instance, be struck by an act of nature. A wildfire, earthquake, hurricane, or even a serious storm, could ravage your building and destroy your valuable equipment. Burglary, robberies, and acts of vandalism are other examples of unforeseen circumstances that could devastate your business, while spontaneous equipment breakdown is another serious threat.

Internet cafes could additionally face lawsuits - an employee or customer may become injured on the premises, or a third party may attempt to hold your business responsible if one of your computers is used for criminal activities.

Without the correct internet cafe insurance program, your business will be faced with the burden of massive, and possibly even bankrupting, costs - not to mention possible fines, since some types of insurance are mandated.

By investing in the correct insurance coverage, however, you ensure that your Internet cafe has the chance to recover from major perils, as your insurer will cover a significant amount of the costs.


What Type Of Insurance Do Internet Cafes Need?

Internet Cafe

While all internet cafes will need to carry several different types of insurance, the exact nature of your needs depends on the unique circumstances of your business.

The location of your cyber cafe, the value of your computers and other equipment, and your number of employees are merely some of the factors that influence what kinds of coverage you should carry.

Because the insurance plan that will best protect your financial health is one tailored to your individual needs, it is essential to consult a commercial insurance broker.

With that in mind, some of the essential types of internet cafe insurance include:

  • Commercial Property: Should your facility be affected by perils such as acts of nature or accidents, this form of insurance will cover the costs of resulting property damage or loss.
  • General Liability: This type of insurance protects your business against third party property damage or bodily injury claims, by covering a significant portion of the related legal costs. Since you never know when someone may file a lawsuit, general liability coverage is vital for all commercial ventures.
  • Workers Compensation: In the event an employee sustains a work-related injury, this kind of internet cafe insurance coverage will pay for their medical bills. Any wages they lose if they need to take time off work are also covered.
  • Commercial Crime: Since commercial property insurance will not cover losses resulting from robberies, fraud, or employee dishonesty, Internet cafes will also require crime insurance.
  • Equipment Breakdown: This kind of insurance helps you cover repair or replacement costs if important and valuable equipment suddenly breaks down. Note that, while it will cover your hardware, software does not fall under equipment breakdown policies.

These essential forms of internet cafe insurance coverage will certainly help to protect your business from major perils - but be aware that cyber cafes may also require other kinds of insurance. Speak to a commercial insurance broker to find out more about keeping your business safe.


Internet Cafe's Risks & Exposures

Internet Cafe Computers

Premises liability exposures are moderate due to public access to the premises. Customers move throughout the internet cafe 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. Personal injury exposures include allegations of assault and invasion of privacy.

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 food or gift items directly, it has the exposure of a manufacturer or retailer.

Workers compensation exposure is moderate due to the use of electronic equipment and food preparation. Use of computer keyboards can result in repetitive motion injuries. All workstations should be ergonomically designed. Slips, falls, burns, foreign objects in the eye, heavy and awkward lifting, and interactions with customers can result in injury.

Food handling can result in passing bacteria or viruses, resulting in illness. Custodians can develop respiratory ailments or contact dermatitis from working with chemicals. As with all retail businesses, hold-ups are possible, so employees should be trained to respond in a prescribed manner.

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. The internet cafe may use an espresso machine, which is operated at elevated temperatures and is pressurized.

Other equipment can include 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. There should be after-hours security to prevent unauthorized access to the premises.

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 and valuable papers and records for customers' and vendors' information. Duplicates should be made of all data and kept off premises.

Business auto exposure is generally limited to hired and non-owned liability for employees running errands. If there are owned vehicles, all drivers should be licensed with acceptable MVRs. Vehicles must be maintained, and records kept in a central location.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 5812 Eating Places
  • NAICS CODE: 722515 Snack and Nonalcoholic Beverage Bar, 722513 Limited-Service Restaurants
  • Suggested ISO General Liability Code(s): 16900, 16901, 16910, 16911
  • Suggested Workers Compensation Code(s): 9082, 9083

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)
  • Beaneries
  • Box lunch stands
  • Buffets (eating places)
  • Cafes
  • Cafeterias
  • Carry-out restaurants
  • Caterers
  • 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
  • Luncheonettes
  • Lunchrooms
  • Oyster bars
  • Pizza parlors
  • Pizzerias
  • Refreshment stands
  • Restaurants
  • Restaurants, carry-out
  • Restaurants, fast food
  • Sandwich bars or shops
  • Snack shops
  • Soda fountains
  • Soft drink stands
  • Submarine sandwich shops
  • Tea rooms
  • Theaters, dinner

Internet Cafe Insurance - The Bottom Line

To protect your business, employees and customers, having the right internet cafe insurance coverage is important. To see your options, find out how much coverage you should invest in and the cost - speak to a reputable commercial insurance broker.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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.


Food And Drink Insurance

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.

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.


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