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Bagel/Donut/Coffee Shops

Other risks exist in coffee shops that can make you liable for large expenses or court fees during litigations such as a customer who sues for too-hot coffee that burned him. But coffee shop insurance can protect these and many more types of liabilities and risks.

Coffee shops and cafes can find insurance to cover lawsuits and property damage costs – but you might be wondering how much coffee shop insurance costs. To help you budget your insurance, we’ve provided insurance cost estimates for three important types of coverage.

These price estimates are meant for general information purposes only, to give you a ballpark idea of what you might pay. Actual policy costs will vary significantly from one cafe to the next based on your location, how much business you do, and a variety of other factors.

General Liability Insurance

Because numerous customers walk in and out of your cafe every day, General Liability Insurance can offer you vital liability protection. This policy covers slip-and-fall accidents as well as other injury lawsuits that could arise after people other than your employees are injured on your property.

Additionally, GL Insurance covers other basic business liabilities, including advertising injuries, slander and libel, and property damage lawsuits.

Rates for General Liability Insurance for typical coffee shops (with no food service) range from $425 to $796.

As you know, coffee shops are all a bit different. Some serve food or roast beans on site. The quotes above are for coffee shops that don’t serve food. If your shop has food service, alcohol service, or roasting facilities, you should expect to pay more for GL Insurance.

Business Owner’s Policy

cafes can sometimes get a discount on their small business insurance by purchasing a Business Owner’s Policy, which bundles General Liability and Property Insurance into one package.

As a cafe owner, you know that quality coffee comes from quality equipment. An espresso machine alone can cost tens of thousands of dollars – a significant investment. If a fire, storm, theft, or vandalism results in property loss, BOP Property Insurance covers the cost to repair or replace your espresso machines, grinders, furniture, inventory, and other property.

BOP insurance for the typical cafe or coffee shop without food service may cost between $602 and $2,091.

Remember that if you rent your space, your landlord’s insurance won’t cover your property. If someone burglarizes your building, you need your own insurance to cover your losses.

Workers’ Compensation Insurance

Say a barista burns her hand while foaming milk for a cappuccino – you could be liable for her medical expenses as well as the wages she loses if the injury prevents her from working. Workers’ Compensation Insurance (also called Workman’s Comp or Workers’ Comp) covers these costs as well as legal expenses when an employee sues you over an injury or illness.

A typical cafe or coffee shop can expect to pay $1,412 to $3,686 in annual Workers’ Comp premiums.

Workers’ Comp is usually required by law if your coffee shop has employees. To find out more about your state Workers’ Comp regulations, see our state-by-state guide to Workers’ Comp laws.

One way of providing a comprehensive insurance package at a reasonable cost is to self insure or retain some of the risk by raising the deductibles on the property forms. This seems obvious, but many times the deductibles are set low as well as the coverage limits.