Coffee Shop Insurance for Cafes, Espresso Bars, and Coffeehouses
Safeguard your coffee shop from expensive liability and property claims with affordable business insurance from Food Liability Insurance Program (FLIP).
Benefits of Coffee Shop Insurance
Fill your cup with the perks of getting insured with FLIP.
Avoid Out-of-Pocket Expenses
Accidents happen, and they can cost you. Cafe insurance is designed to cover costs like legal fees, property repairs, and medical bills.
Satisfy Insurance Requirements
Get the coverage required by your lease or local laws. Plus, download your certificate of insurance (COI) and add additional insureds online at any time.
Build Trust in Your Business
Show your customers, employees, and business partners that you’re financially prepared if something goes wrong.
What Is Coffee Shop Business Insurance?
Coffee shop insurance is a type of restaurant coverage designed to protect your business from the biggest risks it faces. It typically contains coverages like general liability, commercial property insurance, and product liability, but can be customized to suit your business’s needs.
Your policy can cover a variety of common claims, such as:
- Third-party bodily injuries (injuries to other people caused by your business activities)
- Property damage (to your own business property or to third-party property)
- Foodborne illness (claims from your customers that your products made them sick)
- Workplace incidents (includes allegations of harassment, wrongful termination, or discrimination, as well as workplace injuries and illnesses)
Business insurance for coffee shops can shield you from the costs associated with these claims, so you can focus more on what matters: impressing customers with the perfect roast.
If you run a food or beverage business that doesn’t operate out of a traditional brick-and-mortar location, you might need mobile food business insurance. This policy caters to businesses like food trucks, trailers, and concessionaires.
What Kind of Insurance Does a Coffee Shop Need?
Coffee shops, cafes, and espresso bars typically need a combination of liability and property coverages to protect their businesses from major risks. FLIP makes it easy to create a customized policy that suits your exact needs with coverages like these.
| Coverage | What It Covers | Example Claim |
| General liability | Third-party bodily injuries and damage to other people’s property caused by your business | A customer slips on the wet floor near your pickup counter and breaks their wrist, then sues you to cover their medical bills |
| Product liability | Food-related injuries and illnesses caused by your beverages and any food you sell | A customer claims they got food poisoning from spoiled milk in a latte they ordered from you |
| Personal and advertising injury | Legal expenses if you’re accused of causing financial harm while advertising your business | One of your competitors claims you copied their slogan in an ad campaign and sues you for copyright infringement |
| Damage to premises rented to you | Limited property damage coverage for your rented space | An overheated toaster oven causes a fire and damages the walls and ceiling in your rented space |
| Commercial property | Damages to your building (if you own it), as well as its contents (e.g., equipment, inventory, and furniture) | Thieves break into your cafe overnight and steal espresso machines, cash, and inventory after damaging your front door |
| Employment Practices Liability Insurance (EPLI) | Legal costs if an employee accuses you of discrimination, harassment, or wrongful termination | A former barista files a lawsuit against you, claiming wrongful termination and discrimination |
| Workers compensation | State-required benefits for employees who get hurt on the job or develop a work-related illness | One of your baristas burns their hand on a steam wand and needs medical attention, along with time off work |
| Business income interruption | Lost income and operating expenses if you’re forced to close your business after a covered incident | A fire causes you to close your coffee shop for two weeks, resulting in lost income while repairs are made |
| Liquor liability | Third-party bodily injuries and property damage caused by an intoxicated patron (if you serve alcohol/alcoholic beverages) | A customer is overserved at your cafe’s evening wine service, drives home, and causes a car accident, leading to a claim against your business |
| Cyber liability | First- and third-party financial losses caused by a cyberattack (e.g., data breach, phishing, or ransomware) | Your point of sale (POS) system is hacked, exposing customer credit card data, requiring you to notify customers and cover response costs |
| Equipment breakdown | Replacements or repairs to damaged business equipment due to mechanical, electrical, or operator errors | Your commercial espresso machine’s boiler breaks, requiring extensive repairs |
| Tools and equipment (inland marine) | Replacements or repairs to your mobile business equipment if it’s damaged in transit or at a temporary location | Your portable espresso equipment is stolen from your van while setting up for an event you’re catering |
How Much Does Cafe Insurance Cost?
Coffee shop insurance costs $2,500 per year on average, or $208.33 a month. However, you may pay more or less for your coverage depending on:
- Your gross annual revenue
- Your location
- Your payroll
- The services you offer
- Your claims history
- Whether you rent or own your location
- Whether you sell or serve alcoholic beverages
What Customers Say About FLIP
Here’s what other food and beverage business owners have to say about their experience from over 450 reviews.
Cafe Shop Insurance Coverage Details
General Liability Aggregate Limit
Starts at $2,000,000
Products-Completed Operations Aggregate Limit
Starts at $2,000,000
Personal and Advertising Injury Limit
Starts at $1,000,000
General Each Occurrence Limit
Starts at $1,000,000
Damage to Premises Rented to You Limit
Starts at $50,000
Liquor Liability Occurrence & Aggregate Limit
Starts at $1,000,000
FAQs About Cafe Business Insurance
Does Insurance Cover Damage to My Espresso Machines and Equipment?
Yes. If you add commercial property insurance to your policy, you can get coverage for damage to/theft of your business equipment.
Can I Add My Coffee Shop Landlord to My Policy as an Additional Insured?
Yes. FLIP makes it easy to add additional insureds to your policy at any time, including commercial space landlords and business partners. Simply log in to your online account and add them to your policy at no additional cost.
Do I Need Proof of Insurance Before Opening My Coffee Shop?
In most cases, yes. If you rent your space, your landlord will likely require you to provide proof of insurance (aka, a certificate of insurance) before handing over the keys. Depending on the laws in your area, you may need insurance before you apply for certain business licenses.
Additionally, if you’re applying for a bank loan, they may require proof of coverage before funding your business.
How Do I Get Coffee Shop Insurance?
Cover your business with FLIP in just three steps:
- Start your application
- Provide essential information about your business and submit
- A licensed agent will reach out to you with your free quote and help you craft the perfect policy for your business