Owning a coffee shop is like living out a cozy dream—pouring lattes, greeting regulars, and building a community. But behind the scenes, it’s also a real business with real risks. From hot coffee spills to equipment breakdowns, a small mishap could lead to a big financial headache. That’s where insurance comes in!
Whether you're just opening your first café or expanding your coffee empire, here’s a breakdown of essential insurance coverages to keep your coffee business brewing safely.
General Liability Insurance
If a customer slips on a wet floor or burns themselves on a hot beverage, general liability insurance helps cover medical costs and legal fees. This is a foundational policy that no coffee shop should go without.
Commercial Property Insurance
This protects your shop’s physical assets—like espresso machines, furniture, or the building itself—from fire, theft, vandalism, and other perils. It’s a must whether you rent or own your location.
Business Owner's Policy (BOP)
A BOP bundles general liability and commercial property insurance in one convenient package. It often includes business interruption coverage too, which can help cover lost income if your shop is forced to close due to a covered incident.
Workers' Compensation Insurance
If you have employees, this one’s non-negotiable. It provides wage replacement and medical benefits to workers injured on the job. Most states require it by law.
Equipment Breakdown Coverage
Your espresso machine is the heart of your business. If it fails, this policy covers repair or replacement costs—not to mention the income lost during downtime.
Liquor Liability Insurance
Planning to serve mimosas during brunch hours or host wine nights? If your shop sells alcohol, liquor liability insurance is essential in case a customer causes harm after drinking on-site.
Cyber Liability Insurance
Modern coffee shops often rely on POS systems, online orders, and customer data. Cyber liability insurance helps if there’s a data breach, ransomware attack, or any digital mishap.
How Much Does Coffee Shop Insurance Cost?
Costs vary depending on your location, size, and services. But here’s a ballpark for monthly premiums:
Business Owner's Policy (BOP): ~$92/month
General Liability Insurance: ~$63/month
Workers' Compensation Insurance: ~$97/month
Liquor Liability Insurance: ~$31/month
Cyber Insurance: ~$145/month
Insurance might not be as fun as latte art, but it’s essential for keeping your café safe and thriving.
Managing risk is a critical part of running a successful business. We’re here to help ensure your company complies with state regulations and arrange coverage to transfer potential risks from your operations to a trusted insurance carrier.
If your business assets or exposures require specialized coverage, consider a complimentary Commercial Insurance Review with UWIB Risk. This thorough assessment can identify gaps in your current policies and provide tailored solutions to protect your business effectively.