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From high employee turnover to rising food costs, you’ve overcome a lot of hurdles to build your coffee shop. So why let unforeseen events jeopardize your hard work?
- Coffee Shop Insurance helps protect your café, coffee house, or tea room when the unexpected happens. Whether it’s an employee injury, equipment breaking down, vandalism, or theft, there is a policy to help cover the associated expenses.
We understand that your coffee shop is more than a business—it’s a community hub where people gather and connect. Here’s everything you need to know about getting business insurance to protect your space and give you peace of mind.
Importance of Coffee Shop Insurance
Coffee Shop Insurance ensures that you don’t have to handle unexpected expenses alone. Without insurance, costs from lawsuits, injuries, property damage, and other unforeseen events can wreak havoc on a coffee shop’s finances.
“A customer sued us last year when they burned themselves on a cup of our coffee. It wasn’t long before the legal bills started piling up. Thank goodness our insurance covered most of them. Thankfully, the legal battle is now over—just in time for us to celebrate 20 years in business! We know this wouldn’t have been possible without our insurance, and we count our blessings every day that we still get to run our little corner café.” - Jane & Don B.
Specifically, coffee shop insurance helps cover:
- Appliances & Equipment – Industrial coffee machines and other café equipment come with a hefty price tag. Equipment breakdown coverage can help cover the cost of repairs and replacements.
- Spoiled Food – Whether food spoils due to a power outage or appliance failure, the result can be devastatingly costly. According to the National Restaurant Association, 97% of restaurant owners cited food cost as either a “significant” or “moderate” challenge for their food business.
- Lawsuits – Whether a customer sues you for food poisoning or an employee serves you papers for wrongful termination, insurance can help. Insurance can assist in covering legal costs and, in some cases, also protect your business’s reputation.
Did you know a worker is injured on the job every 7 seconds? .
- Employees – If your barista burns themselves while making a latte or slips on a spill, they may be out of work for a while—losing their income. If your coffee shop has adequate insurance in place, it will cover the employee’s lost wages.
- Lost Income – Say there is an outbreak of foodborne illness linked to your coffee business, and the health department shuts you down. This temporary closure can result in a massive income loss if you don’t have business interruption insurance.
Types of Coffee Shop Insurance
General Liability Insurance
Covers damage to other people’s property—not yours. Also covers if your business causes a customer bodily harm. For example, a customer slips on your icy steps.
Commercial Property Insurance
Protects your coffee business’ property and its contents (equipment, inventory, furniture). Covers theft, vandalism, fire, or weather-related damage.
Business Owners Policy (BOP)
One of the most popular types of insurance for coffee shops, tea rooms, and coffee bars. It combines General Liability Insurance and Commercial Property Insurance.
Business Interruption Insurance
Reimburses losses if your business temporarily closes due to theft, fire, acts of nature, etc. Often added to a Business Owners Policy.
Product Liability Insurance
Covers if you get sued due to your food products causing bodily injury or property damage. Often combined with General Liability Insurance for extra coverage.
How Much Does Coffee Shop Insurance Cost?
Coffee shop insurance costs anywhere from $500 - $3,000 annually for small establishments. This range represents the cost of a Business Owners Policy. However, insurance costs are highly individualized as they depend on many factors. This includes, but isn’t limited to:
- What you want covered
- How much coverage you need (coverage limits)
- Your business operations
- Number of employees
- Business location
- Revenue
- Past insurance claims
- Business experience
Want to save money on your food business insurance? Getting a policy with a higher deductible is one option. However, you can also opt to pay your premiums yearly (instead of monthly) to save anywhere from $30 to a few hundred dollars.
How to get Insurance for your Coffee Shop
Applying online is the easiest way to get insurance for your coffee shop. Our form takes only a few minutes to fill out. It instantly generates multiple insurance package options, along with their prices.
1. Get a Free Coffee Shop Insurance Quote
Complete an online insurance application.
Information that you will need on hand includes:
- Business Information: Name, start year, description of operations.
- Federal EIN
- Contact Information
2. Purchase Your Insurance Policy
Options for insurance packages and their prices will be sent directly to your email. Please check your Junk Folder. Follow the instructions to purchase your insurance online. Once your payment clears, you will receive your Certificate of Insurance.
If you have any questions or want to customize your insurance policy further, don’t hesitate to call one of our insurance agents at 888-592-6631.
Additional Coverage Options for Coffee Shops
Cyber Insurance
Technology is a game changer for loyalty programs, marketing, delivery, and more. However, if you have a data breach and customer information gets leaked, it can be a costly headache.
Cyber Insurance covers costs for informing customers of a data leak, hiring a public relations firm for damage control, legal expenses, and more.
Food Spoilage & Food Contamination Insurance
Reimburses the cost of spoiled food and beverages. It covers food going bad for various reasons, such as power outages, appliance failure, or mechanical failure. Suppose your business is shut down due to a foodborne illness outbreak. In that case, it can also cover the costs of cleaning your equipment, as well as medical tests for affected employees.
Employee Dishonesty Coverage
Food businesses like coffee shops, tea rooms, and cafes have high employee turnover. And the reality is that not all workers are trustworthy. This coverage offers protection if you experience business property loss due to an employee’s dishonest acts.
Commercial Auto Insurance
For those that have delivery cars or other commercial vehicles. Commercial Auto Insurance covers bodily harm and vehicle damage from car accidents or other motor vehicle events.
FAQs
How do I file a claim for coffee shop insurance?
To file a claim for coffee shop insurance, you need to contact your insurance company and send supporting evidence.
- Contact your insurance company as soon as possible. Most companies accept claims over the phone, but others offer online options (a submission form on their website or an app).
- Send supporting evidence. If you are submitting your claim online, you may be able to send photos with the initial claim form. Otherwise, the claims adjuster assigned to your case will request evidence. This may be photos, videos, witness information, or documents relating to your claim.
- Work with your claims adjuster to provide any additional requested details or documentation. They will look everything over to determine what is covered and the validity of your claim.
How can I lower my coffee shop insurance premiums?
To lower your coffee shop insurance premiums, you can pay for your policy annually instead of monthly. Alternatively, you can opt for a policy with a higher deductible. Finally, bundling multiple policies into one Business Owners Policy (BOP) can also lower your insurance costs.
What happens if my coffee shop closes temporarily due to an emergency?
If your coffee shop closes temporarily due to an emergency, you lose out on income. Business Interruption Insurance helps pay for operating expenses while you’re closed to lessen the financial burden. Some expenses that this policy covers include payroll, rent, and utility bills.
You can get this type of insurance on its own, but it is commonly added to a Business Owners Policy.
Can I get insurance for a coffee shop in a rented space?
Yes, you can get insurance for a coffee shop in a rented space. In fact, most commercial rental agreements and leases require you to have General Liability Insurance.
Sources
2025 State of the Restaurant Industry. (n.d.). In NRA. Retrieved February 12, 2025, from
https://restaurant.org/research-and-media/research/research-reports/state-of-the-industry
Commercial & Business Insurance Guide. (n.d.). In JW Surety Bonds. Retrieved February 12, 2025, from
https://www.jwsuretybonds.com/business-insurance
Workplace Injuries by the Numbers - National Safety Council. (n.d.). In www.nsc.org. Retrieved February 12, 2025, from
https://www.nsc.org/workplace/resources/infographics/workplace-injuries-by-the-numbers