As an owner and operator of a coffee shop, you have spent time and money perfecting your business including selecting the right products to sell, renting or buying equipment, decorating the coffee shop, and hiring employees. It’s scary to recognize that you may lose some of your hard work and savings if you don’t have the proper coffee shop insurance coverage. A variety of insurance policies are available for coffee shops to protect against a number of liabilities and risk exposures; all of which provide extra protection for your business.
Why You Need Coffee Shop Insurance
A number of risk exposures and liability risks exist in a coffee shop, no matter the size of coffee shop you operate, how many employees you have, or the type of products you serve. Natural disasters can put any type of business at risk and coffee shops are no exception. Other risks exist in coffee shops that can make you liable for large expenses or court fees during litigations such as a customer who sues for too-hot coffee that burned him. But coffee shop insurance can protect these and many more types of liabilities and risks.
Types of Coffee Shop Insurance Coverages
There is a wide array of commercial insurance policies for coffee shops that cover a myriad of risks including natural disasters and other forms of damage to the shop, liability insurance against accidents or bodily harm in the shop, and a number of other policies.
General liability coverage is one of the most important insurance policies to obtain for a coffee shop. This insurance policy will cover expenses that arise as a result of one of your customers being harmed or injured inside your shop, such as being burned by coffee which was too hot, slipping on the floor and injuring themselves, or other types of accidents on the property. The potential liability is protected by general liability insurance, making it one of the most vital types of coverages.
A business owners insurance policy, also called a BOP, is a combination of benefits and coverages which not only includes general liability insurance, but also allows you to add a variety of other types of coverages for a wider range of protection, such as the following:
Equipment Breakdown can be covered by a BOP whereby you need to repair or replace any equipment in your coffee shop that malfunctions. Equipment breakdown insurance helps you avoid paying for these costs out-of-pocket repairs or going without equipment when your business needs to in order to maintain its normal workload.
Buildings and Contents offers protection to your coffee shop building, and covers a number of repairs and replacements including damaged parts of the building,plumbing, and even décor such as the sign out front or furniture inside.
Business Income and Extra Expense is a type of insurance coverage that offers you financial stability and replaces lost income as a result of a covered loss that has caused damaged to your coffee shop and prevents you from remaining open for a certain period of time.
Electronic Information offers coffee shop owners financial protection should your electronic information and back-up files be lost or corrupted, which can cost a good deal of money to replace.
Valuable Papers Protection may be included in your BOP policy in which you have additional protection from replacing important paperwork which may get lost or damaged as a result of a covered loss.
Employee Dishonesty Coverage provides additional protection from certain fraudulent acts an employee might commit such as theft, unlawful claims, damage to your property, or other dishonest acts.
Many coffee shops have one or more vehicles used for business purposes such as making deliveries or picking up goods from a local manufacturer. In this case, commercial auto insurance is necessary, and will protect your company and employees from accidents and the resulting medical expenses or damages to the vehicle.
Workers’ Compensation Insurance is required by most businesses in the United States, and offers your business protection in the case of an employee is injured or suffers an occupational illness during business operations.
Coffee shops come with their own set of liability risks and therefore it becomes essential to have sufficient insurance coverage. Aside from general liability coverage, as a coffee shop business owner, it is beneficial that you consider supplemental insurance coverages for optimum protection.