How much is insurance for coffee shops and cafes?

Coffee shops pay an average of $92 per month, or $1,105 per year, for a business owner's policy (BOP).

A BOP combines general liability insurance and commercial property insurance into one convenient, cost-effective package that protects you from a wide range of third-party risks, such as customer injuries, property damage, and vandalism.

For example, if a customer slips and falls on a wet floor and sustains injuries, your BOP insurance covers medical bills and legal expenses if they decide to sue.

Below is the average BOP for coffee shops that buy from TechInsurance:

Insurance premium: $92 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

The per-occurrence limit is the most your insurance company will pay for a single incident, while the aggregate limit is the maximum paid for all claims during the policy period (usually one year).

The cost of a business owner's policy is based on several factors, including the value of your property, your location, and the number of employees you have. Cafes with lower risk exposure often qualify for a BOP.

You can also expand your policy with additional coverage by adding endorsements based on your needs, such as business interruption insurance or equipment breakdown coverage.

On average, coffee shops pay $63 per month, or $752 annually, for general liability insurance coverage, which is the most common type of liability insurance.

General liability insurance, also called public liability insurance, covers coffee shops from common third-party liability claims involving personal injuries, property damage, or advertising injuries. For instance, if a barista accidentally spills a latte on a customer's phone and damages it, a general liability policy would cover the repair or replacement costs.

Many property managers require business owners to show proof of general liability coverage to sign a rental lease.

In addition, public liability insurance for coffee shops typically includes product liability insurance, which protects your business if a product causes harm. For example, a coffee shop serves a drink with spoiled milk and a customer gets sick. If they decide to sue over food contamination, product liability would help cover the related legal costs and medical expenses.

This is the average general liability insurance policy for coffee shop businesses that buy from TechInsurance:

Insurance premium: $63 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of general liability insurance is based on several factors, including the types of beverages and goods you sell, the policy limits and deductible you choose, the size and location of your business, the number of employees you have, and any endorsements on your policy, such as an additional insured.

Coffee businesses pay an average of $97 per month, or $1,168 per year, for workers’ compensation insurance.

This policy helps cover medical expenses, rehabilitation costs, and lost wages if an employee experiences a workplace injury or becomes ill while performing work duties. It also includes employer’s liability coverage, which protects your coffee shop if an injured employee files a lawsuit over a workplace incident.

Most states require businesses with employees to carry workers’ compensation insurance. The specific rules vary by location.

For example, all employers in California must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Even if your coffee shop is a solo operation with no employees, carrying workers’ comp can protect you financially if you’re injured on the job. Standard health insurance often excludes work-related injuries, leaving you to pay out of pocket without this coverage.

Workers' comp can also help sole proprietors cover lost income if they need to temporarily close for work-related injuries and recovery. It also provides death benefits for surviving family members if a sole proprietor suffers a fatal workplace injury.

Your workers’ comp premium depends mainly on how many employees you have, the type of work they perform, and your claims history. You can help lower your costs by classifying employees accurately and adopting a workplace safety program to reduce injury risks and claims.

Other factors, such as the cost of healthcare in your state, can also affect your premium.

The average liquor liability insurance cost for food and beverage businesses is $58 per month, or $696 annually. Coffee shops and cafes that sell alcohol should purchase liquor liability insurance to address the unique risks associated with serving alcoholic beverages.

Liquor liability coverage will protect your business from liability related to alcohol sales and service. Most states and jurisdictions require proof of liquor liability insurance in order to obtain a liquor license.

The average liquor liability insurance policy for small businesses that purchase from TechInsurance is:

Insurance premium: $55 per month
Policy limits: $1 million per occurrence; $2 million aggregate

Many states have dram shop laws that hold businesses liable for damages caused by intoxicated customers who received alcohol from your establishment. Liquor liability coverage can protect you and your business from costly legal costs and financial losses that can stem from an alcohol-related incident.

Learn more about liquor liability insurance costs and what factors affect you premium.

Food and beverage businesses, including coffee shops, pay an average of $170 per month, or $2,041 per year, for commercial auto insurance with TechInsurance.

This type of coverage protects your coffee shop if a company-owned vehicle is involved in an accident. It can pay for bodily injury or property damage claims, as well as legal fees if you’re sued. Many policies also cover vehicle theft, vandalism, and weather-related damage.

Most states require commercial auto insurance for business-owned vehicles. If you use personal, rented, or leased vehicles for work, consider hired and non-owned auto (HNOA) insurance to fill coverage gaps.

The cost of commercial auto insurance depends on several factors, including your policy limits, the coverage options you choose, the number and value of your vehicles, and the driving records of anyone permitted to drive.

Small businesses, including coffee shops, pay an average of $145 per month, or $1,740 per year, on cyber insurance, also known as cyber liability insurance or cybersecurity insurance.

This coverage helps your food service business recover from the financial impact of a cyberattack or data breach. It can help pay for data recovery, breach investigations, notification costs, legal defense costs, and even cyberextortion payments.

Coffee shops often digitally process and store private customer information, such as credit card information, email addresses, names, and addresses. Having a cyber insurance policy can help protect your business in the event of a data breach or cybersecurity incident.

The cost of your cyber insurance policy depends on factors such as how much sensitive data you manage, your cybersecurity controls, and your claims history. Cafes that store large volumes of customer information typically need higher limits to ensure full protection.