Cafe / Coffee Shop Insurance

Cafe and Coffee Shop Insurance

Business insurance coverage tailored for your cafe or coffee shop.

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Zensurance - Cafe shop owner
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Insurance for cafe and coffee shop owners

There’s always a spot to grab a hot cup of joe to recharge and conquer the day in any city or town.  Cafes come in all shapes and sizes, from picturesque sit-down environments to hole-in-the-wall style coffee stop. The variety is continuously growing, and there’s always a new spot to check out. 

For cafe and coffee shop owners, we know you’re driven to provide great food and service. However, as with any business, an unexpected situation can send your plans off-track, create financial hardship, and possibly bankrupt your business. Thankfully, with the right insurance policy, your cafe, coffee shop or other eateries can be protected against costly claims, giving you the peace of mind to focus on what’s important.

At Zensurance, we’re here to help. More than 100,000 entrepreneurs have trusted us to protect their variety of businesses with insurance policies designed for them. Below you’ll find the transparent information you need to get acquainted with cafe and coffee shop insurance.

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What is cafe and coffee shop insurance?

Our cafe and coffee shop policy packages help owners of food and drink establishments to protect themselves against risks associated with their business operations, including premises-related claims and liable accidents and injuries.

What does it cover?

Cafe and coffee shop insurance describes several coverages that provide a comprehensive policy for your business. Typically, cafe and coffee shop insurance will include the following policies:

  • Commercial General Liability (CGL) Insurance: CGL or “slip-and-fall insurance” can provide coverage against the day-to-day risks while running a cafe or similar business. If a third party is injured or their property is damaged at your location, they can sue. For example, say, a customer falls off a wobbly stool at your juice bar and injures their back. CGL would typically cover legal expenses and third-party medical bills, regardless of the legal outcome.
    • Product Liability Insurance: As part of a CGL policy, you can be covered for injuries or property damage caused by defective products that you manufacture, sell or distribute – this includes the food and drink products you serve. For example, you sell pre-baked cookies in your cafe, and a customer has a serious allergic reaction, claiming there must be nuts in the product even though the ingredients didn’t list it. In this case, your customer could sue, and product liability insurance may cover you for legal defence costs and third-party medical expenses.
  • Commercial Property Insurance: Commercial property insurance protects your eatery location and the contents within it from insured risks that occur, causing damage beyond your control, like a fire, theft, or storm. Say a severe windstorm impacts your business, and loose shrapnel smashes your cafe’s front window. Commercial property damage could cover the costs of replacing the window and any subsequent damage within your cafe.
    • Business Interruption Coverage: This coverage is often part of a commercial property insurance policy and provides you with reimbursement for net income lost following an insured event. Say, after the windstorm damage example above, you had to close shop for a few days to fix your window. This coverage could cover the costs of the estimated lost income and other expenses. However, this coverage does not cover income lost due to an infectious disease, pandemic, or government-mandated closure.
  • Equipment Breakdown Insurance: This insurance covers the costs to repair or replace professional equipment (e.g., a commercial kitchen appliance) that’s broken down or damaged due to an internal event, such as a mechanical or electrical failure. You can also be covered for subsequent expenses that are lost due to the breakdown. For example, say you run a coffee shop, and your expensive espresso machine breaks down due to a mechanical fault during a busy Monday morning. Equipment breakdown coverage could cover the costs to repair the device and provide financial reimbursement for the income lost due to the breakdown. Please note that an equipment breakdown insurance policy cannot be purchased without property insurance.
  • Cyber Liability Insurance: If you store personal data (e.g., using a point-of-sale system or if customers order through your website), you have a legal obligation to protect that information. Cyber insurance will cover costs like legal fees associated with electronic incidents or hacks that involve your technology and confidential or personal data.
  • Legal Expense Insurance: If you need legal representation for a situation beyond what you’re covered for by your insurance policies (e.g. protection for your property or injury to yourself or an employee), legal expense insurance can provide financial coverage for hiring a lawyer. This coverage also covers the cost of legal advice and legal representation.

Do coffee shops or cafes need insurance?

Any individual operating a coffee shop or cafe that serves food or drinks should protect themselves with a cafe and coffee shop insurance package. We’ve helped thousands of business owners find a great policy. Some businesses that can benefit from a cafe and coffee shop insurance package include: 

  • Cafes 
  • Coffee shops 
  • Delis
  • Bakeries
  • Internet cafes
  • Juice bars 
  • Teahouses
  • Ice cream shops

How much does it cost?

Due to the variety of cafes and other eateries out there, many factors can influence the cost of your insurance policy. For a small cafe or coffee shop business, you can anticipate a starting cost of approximately $1,500 per year for an insurance policy package.

Here are some of the main factors that are taken into consideration when determining the best policy options and quote for your business: 

  • Years of experience
  • Services offered
  • Business size and location
  • Annual and projected gross revenue
  • Number of employees
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Common claims scenarios

Frequently asked questions

One of my employees stole cash from my coffee shop. Will my insurance provide this coverage?

When an employee is involved in stealing company property, you need additional coverage called commercial crime insurance. Commercial crime coverage protects your business by offering financial protection against claims of employee dishonesty, forgery, fraud, and internal theft.

If I sell alcohol at my cafe, will I need extra coverage?

Yes, if you serve alcohol in your cafe, you should add liquor liability to your policy. Liquor liability can cover you financially for alcohol-related accidents, such as being accused of overserving a customer, who injures themselves due to their intoxication. Liquor liability can cover legal fees and other related costs (such as medical fees)

Does my cafe insurance cover additional catering services?

Yes, if you offer a catering service also, you may require additional coverage based on the size and locations of the events you’re catering. Within your quote, you should disclose additional services offered, such as catering, to ensure you have enough coverage.

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You’ve dedicated your career to helping people relax and recharge in your establishment. You deserve a broker that gives you a similar feeling about protecting your business.

Get started with your quote today by filling out a simple online application to get a free quote. If you’d like to chat with a professional about your insurance needs, one of our licensed brokers will happily guide you through the process along the way.

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