How much does business insurance cost for coffee shops and cafes?

Coffee shop and cafe owners pay an average of $92 per month for a business owner’s policy (BOP), or an average annual premium of $1,105.

A BOP bundles general liability insurance with property insurance, usually at a discounted rate. This insurance package often includes insurance endorsements, such as business interruption insurance (also called business income insurance) or equipment breakdown coverage.

This is the average policy for coffee shops who buy from Insureon:

Premium cost: $1,105
Policy limit: $1 million per occurrence, $2 million aggregate
Policy deductible: $1,000

The cost of a business owner's policy is determined by your cafe's location, operations, and value of business property. Coffee shops with high-value equipment and furnishings tend to pay higher premiums.

Not all cafes qualify for a business owner’s policy. Check with your Insureon agent to find out if your coffee shop is eligible.

Coffee shops and cafes pay an average premium of about $63 per month, or $752 annually, for general liability insurance. This policy protects cafes against customer bodily injuries and customer property damage, along with advertising injuries.

Insureon’s licensed agents typically recommend purchasing a business owner’s policy, which bundles general liability insurance with commercial property insurance at a discounted rate. A BOP protects your own business property and covers common business risks, like customer injuries.

This is the average policy for coffee shops who buy from Insureon:

Premium cost: $63 per month
Policy limit: $1 million per occurrence, $2 million aggregate

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

The average cost of workers’ compensation insurance for a cafe is about $97 per month, or $1,168 annually. The cost of a policy varies significantly depending on the state and your business operations.

Workers’ compensation insurance is required in almost every state for coffee shops with employees. This coverage helps pay medical bills and lost income for baristas and other employees who are injured on the job. Most policies include employer’s liability insurance, which protects cafe and coffee shop owners against lawsuits and legal expenses related to employee injuries.

Because health insurance plans can deny claims for workplace injuries, workers' compensation coverage is also recommended for sole proprietors.

The cost of workers' comp depends on several factors, primarily the size of your staff and their occupational risks. You can save money on workers' comp coverage by classifying your workers correctly and implementing a risk management plan to minimize work-related injuries.

Liquor liability insurance is an important policy to consider for coffee shops and cafes that plan to sell alcohol. The average liquor liability insurance cost for food and beverage businesses is $58 per month, or $696 annually.

This type of insurance protects cafes from liability related to serving alcohol. In some jurisdictions, your coffee shop might need liquor liability coverage in order to obtain a liquor license.

This is the average policy for coffee shops who buy from Insureon:

Premium cost: $58 per month
Policy limit: $1 million per occurrence, $2 million aggregate

What's more, many states have dram shop laws that hold a business liable for any damages caused by intoxicated customers that were served by your staff, which can make this coverage all the more important to protect businesses against the expensive legal fees and other financial losses from an incident.

Learn how to save money on your policy, which coverage options to choose, and how liquor liability costs are calculated.

The average cost of commercial auto insurance is about $164 per month for food and beverage businesses, or $2,116 annually. This insurance covers medical expenses related to injuries and property damage costs if someone driving your coffee shop vehicle is held liable for an accident. It also covers vehicle theft, vandalism, and damage caused by weather.

Most states require this type of insurance for vehicles owned by your cafe business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on several factors, including the policy limits you choose, any additional coverages, property and liability claims history, the number and value of your vehicles, and the driving records of anyone permitted to drive. Learn how insurers calculate your premium and how to save money on commercial auto coverage.