Coffee Shop Insurance

small business owner protected by Coffee insurance

What Is Coffee Shop Insurance

Coffee shop insurance is a type of business insurance customized for coffee shops and cafes who serve brewed coffee, pastries, muffins and other baked goods that aren’t cooked on their premises. It can help protect business owners against costly claims of property damage, theft, employee injury, lawsuits and loss of income. Without insurance coverage, you’d have to pay out of pocket if something unexpected happens.

What Are Liabilities in a Coffee Shop?

Business insurance can help protect your coffee shop from liabilities that could come up during your day-to-day operations, including:

Customer slip and falls
Equipment damage or breakdown
Employee theft
Fire damage
Wind damage
Employee or customer lawsuits

Coverages for Coffee Shops and Cafes

We take the time to understand your company’s unique needs so we can offer the business insurance coverages that can help keep your coffee shop business running. While we offer many insurance solutions, many business owners start with a Business Owner’s Policy (BOP) because it combines three essential types of insurance into one policy, including:

Commercial Property Insurance

Commercial property insurance, also known business property insurance, helps protect your owned or rented building, tools and the equipment you use to operate your business. This coverage helps repair or replace your business property if a covered property damage occurs, such as:

Fire
Theft
Wind
Lightning

General Liability Insurance

General liability insurance helps protect small businesses from claims that it caused bodily injury or property damage to others. It also helps cover liability lawsuits claiming your business caused a competitor advertising injury or reputational harm.

Business Interruption Insurance

Business interruption insurance, also known as business income insurance, can help replace your lost income if your business is unable to operate due to covered property damage. This coverage also helps pay for operating expenses, like your payroll and monthly bills, until your business can reopen again.

Other coverages available for coffee shops include:

Equipment Breakdown Coverage

Equipment breakdown coverage helps cover damages to your business’ property and equipment if there’s an unexpected breakdown. This coverage is included in a standalone commercial property insurance policy or through a Business Owner’s Policy (BOP). Equipment breakdown coverage can help protect your business’:

Mechanical systems
Computer systems
Appliances
Electrical systems

Workers’ Compensation Coverage

Workers’ compensation insurance gives your employees medical, wage and other financial benefits if they are injured or become ill on the job. This coverage helps pay for employees’ medical bills and lost wages if they need to take time off from work due to a work-related injury or illness. It can also help cover your legal costs if an employee sues your business after an injury or illness on the job. Workers’ comp laws will vary by state, but most state laws require you to have this coverage if you have any employees.

small business protected by Café insurance

How Much Does Insurance for Your Coffee Shop Cost?

On average, our coffee shop customers paid $141 a month, or $1,687 annually, for a Business Owner’s Policy (BOP).** Keep in mind that what you pay for business insurance will often vary. There are several different factors that could influence your business insurance cost, like:

Location
Size of operations
Number of employees
Coverage needs

Covering Your Coffee Shop Operations

The right business insurance coverages will help financially protect you from unexpected incidents. Coffee shop insurance helps cover customer injury lawsuits and claims that could negatively impact your business.

In 2023, cyber incident claims averaged nearly $169,000.²

coffee shop protected by general liability insurance

Customer Injury

“A customer burned their mouth on a cup of coffee they bought from our coffee shop. They ended up needing medical treatment and sued our business.”

General liability insurance, which is included in a Business Owner’s Policy (BOP), helps cover liability claims filed by others if your company caused them bodily injury or property damage.

coffee shop owner protected by Data Breach insurance

Stolen Customer Data

“Our coffee shop collects and stores customer data in a database. Unfortunately, we were notified of a data breach and discovered customer information was exposed.”

Data breach insurance can help pay to notify impacted customers of a data breach. It can also help pay for a public relations firm to handle media needs.

Protecting Your Coffee Shop’s Property

You rely on your equipment to keep your coffee shop running. We know you have certain machines and appliances you need to stay successful, not to mention the storefront of your coffee shop business. That’s why we created insurance coverages made for small businesses, helping protect the property you rely on to serve your customers.

On average, a fire department responds to a fire in the U.S. every 21 seconds.³

Fire Damage

“One of our coffee machines malfunctioned and sparked, starting a fire that ended up causing damage to the wall, ceiling and equipment surrounding it.”

Commercial property insurance can help protect your owned or rented building, plus the equipment and tools used to operate your business if they’re damaged in a fire.

Employee Car Accident

“While delivering an online order, my company van hit a patch of ice, causing me to crash into another car.”

Commercial auto insurance can help cover the costs of an auto accident while you or an employee uses a company-owned car for business reasons.

Covering Your Coffee Shop’s Team

Your team is a key part of your day-to-day operations. Keep them protected with coffee shop insurance made to protect small businesses like yours. Getting insurance coverages made to cover employee issues can help your coffee shop business continue to run smoothly and help keep it successful overtime.

In 2022, there were 2.8 million workplace injuries or illnesses reported by private employers in the United States.⁴

Employee Injury

“My employee slipped and fell on some spilled coffee that she didn’t see. Her doctor diagnosed a sprained wrist and time off so it could heal.”

Workers’ compensation insurance can help cover work-related injuries and illnesses. It can also help protect your business if an employee sues you over an injury or illness that occurred on the job.

Employee Lawsuit

“I had to let go of an employee who was always showing up late to work. She ended up suing my business claiming she was wrongfully terminated.”

Employment practices liability insurance is included in a Business Owner’s Policy (BOP) with The Hartford. It can help protect your business against employment-related lawsuits like wrongful termination, discrimination or harassment.

small business owner shopping online for Insurance for coffee shop

Get a Quote for Café Insurance From The Hartford

We’re an insurance company that makes small business our specialty. We’ve helped over 1.5 million small business owners find insurance coverage they can rely on. In just a few clicks, you can get a small business insurance quote today.