Coffee shops: 5 key risks and the insurance to cover them

If you run a coffee shop, there are a bunch of risks you face that you might not even know about. Recognizing them and getting the right insurance is key to keep your shop brewing.

These are the top 6 types of insurance you have to consider, and 6 others you might want to consider.

1. Protect your coffee brewing machines and other assets with property insurance

Your electrical wiring, refrigeration units, and coffee brewing operations could be damaged. This includes your espresso machine, which is operated at high temperatures and is pressurized. Other equipment includes coffee grinders, steamers, blenders, and related or similar property.

Insurance solution: Property insurance

Property Insurance can cover the cost to repair or replace your espresso machines, grinders, furniture, inventory, and other property.

Remember you can package Property Insurance and General Liability into Business Owner Policy (BOP) to save some money.

Median policy premium: $425 – $79

2. In case you have to temporarily close your business, cover the losses incurred with business income insurance


There are times when you have to close your business for reparations or refurbishment after an incident. During this time your business will be generating no income.

Insurance solution: Business income insurance

This coverage applies to losses occurring during the time required to repair or replace the damaged property. It may also be extended to apply to loss suffered after completion of repairs for a specified number of days.


3. No matter how careful you are accidents happen. General liability has you covered.


As with many other risks, prevention in key to limit theses exposures:

Temperatures of hot beverages must be limited to reduce injuries due to scalding. 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. And the list goes on and on, however accidents might happen anyway.

Insurance solution: General liability

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.

Median policy premium: $475-$1,523

4. If an employee gets injured, the medical expenses and lost wages can account for thousands of dollars. Get covered with workers’ compensation.


Your employees are exposed to risks due to slips, falls, burns, heavy and interactions with customers. What should you do about it?

Employees should be trained to respond in a prescribed manner. With a high employee turnover, company incentives to encourage long-term employment are positive signs of management control.

Insurance solution: Workers’ compensation

Covers medical and rehabilitation costs and lost wages for employees injured at work; it is required by law in all states.

Median policy premium: $1,412 – $3,686

5. Although your employees are carefully selected, employee fraud can always arise. Employee dishonesty insurance mitigates this risk.


At coffee shops many 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. However employees must have access to this cash and might be tempted to commit fraud.

Insurance solution: Employee dishonesty

Covers for employee theft of money, securities, or property, written with a per loss limit, a per employee limit, or a per position limit.


You should also think about:



Umbrella insurance: For a single premium, a Business Umbrella policy adds another layer of protection to any of several other policies that you might carry, including General Liability, Workers’ Compensation, etc. For instance, if you have $1 million in General Liability coverage and a covered claim is settled for $1.5 million, your Business Umbrella Insurance policy would pick up the $500,000 not covered by your General Liability policy.

Cyber liability: Covers a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network.

Non-Owned & Hired auto liability: These are generally limited to hire and non-ownership liability for employees running errands. This insurance covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by non-owned vehicles (vehicles owned by others, including vehicles owned by your employees).

Spoilage insurance: It’s a fairly inexpensive add-on to your general business insurance policy. That makes it a simple addition for most coffee shops and provides a flat amount of protection in case of food spoilage.

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Discussions — One Response

  • vaibhav March 21, 2017 on 4:15 am

    pls call me

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