If you feel that your cafe could benefit from protection against the risks that it encounters daily – such as those posed to staff through the use of heating equipment, or the hazards that a large influx of customers can bring – then you may want to consider taking out business insurance to do just that.
Cafe and coffee shop insurance are not actually types of insurance policies, but rather blanket terms referring to an insurance package - comprising a number of different covers - that's designed specifically for a cafe. The individual policies that are included in this package may vary from cafe to cafe, as different businesses are likely to have different needs and be exposed to slightly different risks.
The forms of cover that you decide to take out in order to protect your business will ultimately depend on the risks that it’s exposed to. There are a number of threats that could a busy cafe or coffee shop, and some of the ones you want to insure against may include:
Asset theft or damage
As a coffee shop, there are likely to be a number of assets that you want to protect against threats. The physical building from which you operate is naturally essential to your business - and specialist equipment such as espresso machines or dishwashers may be vital, too. These assets can typically be insured against damage, loss and theft with buildings or contents insurance.
If your cafe has staff, then there’s always a chance that they could suffer injury or illness as a result of working for you. For instance, a barista could burn themselves on a faulty espresso machine, or a waiter could cut themselves on a piece of broken crockery. If you serve food, then a number of other risks to could come from your kitchen and the tools and equipment in it.
In the event that one of your employees suffers injury following negligence, you could be held responsible, and a claim could be brought against you as a result. In this situation, employers’ liability cover could provide you with financial support.
Given that you'll be welcoming customers through your doors, there’s a chance that your cafe could be deemed responsible for causing injury or illness to a member of the public, which is why many cafe owners decide to take out public liability cover as part of their cafe insurance package.
One scenario where this could prove useful would be a customer slipping in a puddle of spilled coffee and having to take time off work due to the resulting injury. A claim could be brought against you for the customer’s loss of earnings due to their injury, and the cost of defending against that claim could be covered by your policy.
Click the link for a public liability insurance quote.
For more information on the types of insurance you should be considering, try our what insurance does my business need? tool.
Answering this question is not as simple as it may sound, as the cost of your cafe insurance package can vary depending on a number of things. Some of the factors that can influence the cost of insurance include:
Where your cafe is located
Insurers will use a ‘post code rating’ to determine how likely your business is to be affected by threats such as theft, flooding and subsidence – and this is likely to have a large influence over the cost of your cover.
How comprehensively you choose to insure your business
Once you have identified the areas in which your cafe or coffee shop is most vulnerable, you will have a better idea of which policies you may want to take out. Naturally, if you only take out the most basic forms of insurance for your cafe, your overall premium is likely to be lower than if you took out fully comprehensive protection to account for every eventuality.
As a rule of thumb: the more comprehensive your coffee shop insurance package, the higher the cost is likely to be. For example if you choose to protect your business against unique risks it poses to its customers, then this will change how much your public liability insurance costs, but the more comprehensive cover could prove invaluable in the long run.
The size of your cafe
The bigger your business is, the more stock, staff and valuable contents you’re likely to have. Similarly the more customers you’re likely to deal with, the higher the risk of something going wrong. For instance, if your coffee shop works with a large range of drink-making equipment – compared to just one or two basic coffee machines – then this is likely to affect the cost of your contents and equipment cover.
Because there is so much room for variation, it’s not possible to provide you with a definitive quote on this page. Your coffee shop insurance package will be unique, so its price will be too. The best approach is to discuss your cafe’s needs with an insurance broker to ensure you get the cover that’s appropriate for you.
If you require a more general shop insurance quote, click the link.
To get a bespoke quote for business insurance to suit your cafe or coffee shop, get in touch with Make It Cheaper Financial Services today. Our friendly insurance experts can help you to decide which types of cover could be beneficial for your business, and can build a tailored policy around your exact requirements. Call 0800 144 4808 today for your no obligation cafe insurance quote.
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