Ice Cream Shop Insurance

According to the National Restaurant Association (NRA), food and beverage sales have exceeded pre-pandemic levels as of 2024. Even with the hit of inflation, sales are projected to continue to climb—creating opportunities for all food businesses, including ice cream shops.

In fact, the global ice cream market size is expected to grow at a CAGR of 3.9% from 2024 to 2030. 

However, keep in mind that more opportunity often equates to more risk in business, which is why ice cream shop insurance is invaluable.

• Ice cream shop insurance ensures that your employees and assets are financially protected. It helps cover unexpected expenses due to injuries, property damage, theft, vandalism, and more

The guide below gives the scoop on which insurance coverage you need. So you can keep cool in tough situations and make your ice cream business thrive!

Commercial Property Insurance

Protects your business property, such as your shop, equipment, inventory, and furniture. Covers theft, vandalism, fire, or weather-related damage.

General Liability Insurance

Covers if your business causes damage to other people's property. It also covers if you cause others bodily harm. For example, if the awning on your ice cream store collapses onto a customer and they need to be hospitalized.

Business Owners Policy (BOP)

For those needing a combination of General Liability Insurance and Commercial Property Insurance. Business Interruption Insurance can also be included in this policy—it reimburses losses if your business temporarily closes.

Workers' Compensation Insurance

For ice cream businesses with employees. This policy covers medical care, medical bills, and lost wages for employees injured on the job. In most states, this type of insurance is legally required for any business with a certain number of employees.

Commercial Auto Insurance

You need this type of coverage if you have an ice cream truck or mobile ice cream business. It covers bodily harm and vehicle damage from car accidents or other motor vehicle events.

Food Spoilage & Food Contamination Coverage

Covers food replacement costs. For example, if your freezer breaks down. It also assists with costs associated with a foodborne illness outbreak, such as medical testing and equipment cleaning.

"Last summer, a compressor coil issue in our main freezer resulted in thousands of dollars lost in ice cream. Luckily, our insurance covered the cost of both repairing the freezer and the spoiled food. Forever thankful that Jenny, our JW insurance agent, suggested we add Food Spoilage Coverage to our insurance package." – Denise A.

Product Liability Insurance

Often combined with General Liability Insurance or a BOP for extra coverage. It covers if you get sued due to your ice cream causing bodily injury or property damage.

Cyber Insurance

For businesses that store sensitive customer data online for loyalty programs, marketing, etc. Experience a cyberattack or data breach? This insurance will help cover costs associated with legal expenses, contacting customers, and more.

Applying online is the quickest way to get insurance for your ice cream shop. Our online application generates multiple custom insurance package options and prices.

1. Get a Free Ice Cream Shop Insurance Quote

Fill out an online insurance application. This form is available 24/7. Plus, it only takes a few minutes to complete.

Information that you will need on hand:

• Business Info: 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. Once you pick the insurance you want, follow the instructions to purchase. You will receive your Certificate of Insurance (COI) once your payment clears.

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.

The average ice cream shop pays around $150 monthly for a Business Owners Policy (BOP). Keep in mind that many factors can add to this cost. These include:

• Having Employees: In this case, you will also need Workers' Compensation in most states. This can run you an extra $50 to a couple hundred monthly, depending on how many employees you have.
• Serving Liquor: If you serve liquor in your ice cream creations, you may be required by your state to have Liquor Liability Insurance. This runs an ice cream shop $70 monthly, on average.
• Being Mobile: Operate an ice cream truck or other mobile ice cream business? Commercial Auto Insurance will cost you $100+ monthly.

Other factors that will impact your insurance costs include business size, location, past insurance claims, and business experience.

• Protection Against Third-Party Claims – Lawsuits are rarely expected but always costly. Whether it's a claim for wrongful termination or food poisoning, business insurance can help with legal costs.
• Appliances & Equipment Repair or Replacement – Have a freezer on the fritz? Or perhaps you have a soft serve machine that died unexpectedly? Equipment breakdown coverage helps with the cost of repairs and replacements.
• Spoiled Food Coverage – 97% of restaurant owners cited food costs as either a "significant" or "moderate" challenge for their food business . Say you experience food spoilage due to equipment or mechanical failure. If you have insurance, you don't have to foot the bill alone.
• Employee Protection – Whether it's heat stroke from working on a hot day or a slip and fall, employees are always at risk for injuries on the job. Without insurance, you may be liable to pay hospital bills, lost wages, and more if they get hurt at work.
• Law Compliance – Many states require businesses that serve and handle food to be insured. Check with your state authorities to see how much insurance coverage you need and which type of insurance you need.

What is BOP Insurance for an ice cream shop?

BOP Insurance is a Business Owners Policy—it is the most popular insurance for ice cream shops. This insurance bundles various coverages into one comprehensive plan to save business owners money. Common coverage included in a BOP policy includes Commercial Property Insurance and General Liability Insurance.

How long does it take to process an insurance claim?

Insurance claim processing time varies from a few days to several months. Claim time depends on the size of your claim and the situation. For example, a claim with fire damage requires an investigation, which can add a fair amount of time to your wait.

Wondering about an insurance claim you already filed? Contact the claims investigator assigned to your case for an estimated processing time.

Can I customize my insurance coverage based on my shop's needs?

Yes, you can absolutely customize your insurance based on your shop's needs. You can personalize the amount of coverage and type of coverage to suit your ice cream business.

To discuss the specifics of your shop, contact one of our insurance experts. We can get you the insurance you need at the best price!

2025 State of the Restaurant Industry. (n.d.). In NRA. Retrieved February 28, 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 28, 2025, from
https://www.jwsuretybonds.com/business-insurance

Ice Cream Market Size, Share, Growth Analysis Report, 2030. (n.d.). In www.grandviewresearch.com. Retrieved February 28, 2025, from
https://www.grandviewresearch.com/industry-analysis/ice-cream-market

Larson, S. (2024). U.S. Restaurant and Foodservice Industry Statistics and Trends for 2024. In Escoffier.
https://www.escoffier.edu/blog/world-food-drink/us-restaurant-foodservice-industry-statistics