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Coffee Shop & Cafe Business Insurance: Cost, Quotes & More

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Cafe insurance (also referred to as coffee insurance or coffee shop insurance) is one of the best ways to mitigate risk as a cafe business owner. 

Much like grocery store insurance, food truck insurance, bakery insurance and restaurant insurance, this type of business insurance ensures that your food business won’t be put in a bad financial situation if something goes wrong. 

Throughout this article, we’ll take a look at the various types of policies available to cafe owners, how they vary based on the type of coffee business you run and how they can help your cafe business. We'll start, however, with the average coffee shop insurance cost!

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Cafe Public Liability Insurance or Coffee Shop Business General Liability Insurance?

Public liability insurance is one of the most common forms of insurance coverage that businesses acquire. This kind of insurance will protect you from getting sued by customers who end up getting injured or sustaining property damage in your coffee shop, ranging from suffering broken bones to simply breaking their phones.

As we mentioned on other occasions, you’ll typically pay less for your public liability insurance policy if you purchase it as part of your cafe or coffee shop business general liability insurance policy. This way, your coffee business will not just be covered from financial losses that incurred by members of the public (customers), but also from those that happened due to employees, business partners and vendors.

The average public liability insurance cost for a coffee shop or cafe is about $21 per month or $250 per year, though this can vary depending on the size of your operation and your business’s safety culture.

The average general liability insurance cost for a coffee shop or cafe is about $38 per month or $450 per year, with a policy limit of about 1 million dollar per occurrence and a deductible of about $500, meaning that it will typically be cheaper to pay out smaller claims out of pocket.

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Coffee Shop Insurance Cost

Insurance for a larger coffee shop is often pretty similar to insuring a small-scale coffee operation - except everything is scaled up. This means that you can typically expect to pay a bit more on your premiums because there’s a higher risk of you having to pay out for damages, whether they be to customers, vendors, business partners or employees.

Much like smaller cafes, larger coffee shop business owners typically opt for a business owner’s policy which bundles together commercial property insurance and general liability insurance, and even business interruption insurance in many cases. As with most forms of insurance, getting your policies bundled gets you a discount compared to purchasing each of the component policies individually. However, you may have some other coverage requirements that this bundle does not cover, so be sure to pay attention to that.

Since larger coffee shops tend to have more employees, you can also expect to pay a bit more for your workers’ comp policy. Finally, some larger coffee shops may also sell Irish coffees and other alcoholic beverages, meaning that they’ll also need to pay for a liquor liability policy, which protects your business from damages caused by drunk and intoxicated customers. Some states also require coffee shop businesses and cafes to have liquor liability insurance to get their liquor license.

Here’s a breakdown of cafe insurance cost based on quotes that we received for a medium-sized cafe broader coverage from some of the most popular business insurance carriers:

CompanyMonthly costAnnual cost
Allstate$234$2808
Chubb$316$3792
The Hartford$221$2652
State Farm$379$4548
Hiscox$265$3180

Insurance for Small Cafe

Coffee business insurance tends to depend on the kind of cafe that you have started or are already running, and the cheapest type of establishment you can run is a small cafe. It also has the cheapest business insurance. In many cases, internet cafe insurance is around the same price as coverage for a small cafe since there doesn’t tend to be a whole lot of a difference in terms of liability between the two.

Insuring a small cafe tends to be cheaper than insuring a larger one because insurance companies expect you to get fewer customers, which exposes you to less liability and risk over the course of a business day. Smaller cafes also tend to have smaller groups of employees working for them.

Fewer employees in your cafe means that you can expect to pay less for workers’ compensation insurance. Workers’ compensation coverage pays out when your employees end up getting injured on the job. For example, if one of your baristas ends up burning themselves with a hot pot of coffee.

Like with larger cafes, the most common forms of business insurance coverage for small cafes include general liability, workers’ compensation, and public liability insurance coverage (standalone, yet it is mostly included in general liability insurance which is a broader coverage and more recommended as it covers losses incurred by members of the public, but also the business employees, vendors and even investors and business owners). 

Here’s a breakdown of the average small cafe insurance cost for each kind of coverage:

CoverageCost per monthCost per year
General Liability$30$355
Workers' Comp$60$710
Public Liability$17$200
Liquor Liability$29$346
Product Liability$100$1,200
Commercial Property$40$472
Business Interruption$35$415
Business Owners' Policy (bundles GL with commercial property insurance and business interruption insurance at a discounted rate)$80$940
  • The average general liability insurance cost for a small cafe is $30 per month or $355 per year

  • The average workers’ compensation insurance cost for a small cafe is $60 per month or $710 per year

  • The average public liability insurance cost for a small cafe or coffee shop is $17 per month or $200 per year

  • The average liquor liability insurance cost for small cafes and coffee shops is $29 per month or $346 per year

  • The average product liability insurance cost for small cafes and coffee shop businesses is $100 per month or $1,200 per year

  • The average commercial property insurance cost for small cafes and coffee shops is $40 per month or $472 per year

  • The average business interruption insurance cost for small cafes and coffee shop business is $35 per month - or $415 annually

  • The average Business Owners' Policy (BOP insurance) cost, which bundles general liability insurance, commercial property insurance and mostly business interruption insurance as well at a discounted rate, is $80 a month, or $940 a year

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Mobile Coffee Van & Coffee Trailer Insurance

Mobile coffee van insurance tends to be more expensive than other kinds of cafe business insurance because of the additional cost of insuring the vehicle that you work out of. Since you’re using your coffee van for business, you’ll need to take out a commercial auto insurance policy on it.

Commercial auto insurance tends to be more expensive than personal auto insurance because insurance companies (rightfully) expect business vehicles to be used more frequently than personal vehicles. This means that there’s a higher baseline chance of your vehicle getting into an accident, increasing the carrier’s risk.

Along with your commercial vehicle insurance, you may need bobtail insurance, as commercial auto insurance policy will not cover you when your vehicle drives without trailer or load. You’ll also still need some of the other policies that we’ve discussed for coffee businesses. For example, public liability coverage will ensure that you don’t have to pay out of pocket if one of your customers gets injured or has their property damaged while getting coffee from you.

Other kinds of coverage that are specific to mobile coffee vans include machinery breakdown coverage, which will cover any compressors or generators that you use on your coffee van. You can also get a loss of business income add-on that will cover you for lost income when your van is being repaired.

CoverageCost per monthCost per year
General Liability$30$360
Commercial Auto$60$720
Product Liability
$100$1,200
Workers' Comp$40$480
Business Interruption$40$480
Liquor Liability$30$355
Total for all the listed coverage options$300$3,595
  • Workers’ compensation insurance cost for a coffee van: $40 per month or $480 per year

  • General liability insurance cost for a coffee van: $30 per month or $360 per year

  • Commercial auto insurance cost for a coffee van: $60 per month or $720 per year

  • Loss of business income (also known as business interruption) insurance cost for a coffee van: $40 per month or $480 per year

  • Liquor Liability insurance cost for a coffee van: $30 a month or $355 a year 

  • Product liability insurance cost for a coffee van or trailer is $100 a month or $1,200 a year

  • Total average coffee van insurance cost for all of the above coverages: $300 per month or $3,595 per year

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