INSURANCE FOR coffee shops

Coverage – See above 👆🏻. More coverage means higher premiums. Specialty insurance programs designed for coffee shops automatically build many of these coverages into their policies.

Kitchen & Prep Area – If your espresso bar, kitchen, and roasting equipment (if applicable) are in a separate building from any/all inventory and storage or in a separate room with a 2-hour firewall between cooking equipment and storage areas, the best companies will offer the best pricing.

Revenue & Volume – Insurance premiums are driven by revenue. Insurance rates for a coffee shop are different depending on how you are generating those revenues (in-store sales, drive-thru, mobile orders, catering, wholesale bean sales, retail merchandise, etc.).

On-Site vs. Wholesale – On-site customer traffic presents a higher risk for liability, so revenue generated from in-store dining or drive-thru operations is typically more expensive. Wholesale revenue is considered less risky.

Location, Location, Location – Wildfires, floods, neighborhoods with known criminal activity, foot traffic, etc. are factors. Mapping has allowed insurance companies to consider more specific location-based data.

Equipment Value – High-end espresso machines, grinders, refrigeration units, roasting equipment (if applicable), and POS systems are expensive to replace.

Business Ops – Indoor seating, outdoor patios, live music, food prep, delivery drivers…the more humans (employees and customers) + moving parts, the greater the exposure for losses.

Claims History – A spotless record makes you look like a saint. If you have prior insurance claims, the insurance companies will find out.

Limits & Deductibles – When liability limits are high and deductibles are low, the insurance premiums are higher.

Safety & Compliance – Fire suppression systems, employee training, food safety procedures, and checklists are boring, but underwriters love boring. If you have good business systems in place, that not only ensures you’ll be a successful coffee shop, but it also means you are mitigating your risk for insurance losses.

Bundling – One insurer, multiple coverages. They’ll cut you a break for keeping it all in the family. This means package, auto, and umbrella coverage with one carrier generally means a lower overall premium.