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From spilling hot coffee over customers and causing them burns to staff members slipping, tripping, or falling at the workplace and incurring bodily injuries - there are quite a few risks that coffee shop owners need to address in order to avoid any financial liabilities that may arise in the event of an accident.
When you have an adequate level of cover, your business will be freed from having to pay out compensation, reimbursements, and other costs out of pocket in the event of legal action that arises from an accident at your premises.
Why Do Coffee Shops Need Insurance?
There are many benefits for the owners of coffee shops to take out the necessary insurance policies. The main one, however, is that the business will be financially protected in the event of a lawsuit if an accident were to take place.
For instance, if the waiter accidentally spills warm coffee on a customer and causes them burns - the customer can sue the coffee shop and request compensation for the damages.
On the other hand, if the barista burns themselves while making coffee - they can be put out of work for some time, causing them to miss out on earning money. And if your coffee shop has adequate insurance in place - that can cover the employee’s lost wages.
In other cases, coffee shops are quite simply legally required by state law to take out a certain level of protection before they can operate and serve the public.
What Types of Insurance Do Coffee Shops Need?
Coffee shop owners can benefit from a variety of different insurance policies. For the most part - the extent of coverage you should go for depends on the size of your business, the number of employees your business has, the products and services sold at the premise of your business, the state you operate within, and more.
For a more detailed overview of the most recommended insurance policies for coffee shops, please take a look below.
How Much Does Coffee Shop Insurance Cost?
Coffee shop insurance is likely to vary from business to business due to the large number of factors that can influence the total cost.
However, on average, for business owners’ insurance policy - the average coffee shop in the United States pays around $75 every month or $900 per annum.
Coffee shops that have employed staff must take out worker’s compensation insurance. This coverage costs the average coffee shop in the U.S. around $90 per month or $1,080 per year. Such a policy will cover the livelihood of your employees if they got injured or sick at the place of work. Lost wages, medical and hospital bills amongst other costs will be covered by the insurance company.
If your coffee shop also happens to serve alcohol - you need to take out liquor liability insurance, which costs around $50 per month or $600 per year. This policy will provide protection for intoxicated customers in case an accident was to happen.
And lastly, general liability insurance costs the average coffee shop in the U.S. around $40 per month or $480 per year. This policy shields the business from claims and lawsuits related to third-party bodily injuries and property damage.
Typical Coffee Shop Insurance Claims
The most common insurance claims that coffee shops make are related to bodily injuries sustained due to the spilling of hot coffee on customers or trips, slips, and falls at the premises of the coffee shop.
In more rare cases, coffee shops also claim insurance for property damage sustained due to poor weather conditions, theft, and vandalism.