Insurance for a coffee shop / cafe: what you need + typical cost.

For your business: GL + Property bundle is the standard package for cafes.

What it covers in general: A Business Owners Policy bundles General Liability and Commercial Property into a single, discounted policy. Often includes business interruption insurance as well.

Typical annual cost: $750–$1,800 (median $990) · Insureon, Small Business Insurance Cost

For your business: Hot beverages and wet floors create frequent slip/burn injury claims.

What it covers in general: Covers claims of bodily injury or property damage that your business causes to others — a customer slipping in your shop, or a contractor accidentally breaking a client's window.

Typical annual cost: $500–$1,560 (median $540) · Insureon, General Liability Cost

For your business: Not applicable for food service without consulting or catering advisory services.

What it covers in general: Covers claims that your professional advice, service, or work product caused a financial loss to a client — also called Errors & Omissions (E&O) or malpractice insurance.

Typical annual cost: $700–$1,500 (median $876) · Insureon, Professional Liability Cost

For your business: Baristas work with hot equipment in a fast-paced environment. Required in virtually all states.

What it covers in general: Pays for medical expenses and lost wages if an employee is injured or becomes ill because of their job. Also protects your business from employee lawsuits over workplace injuries.

Typical annual cost: $1,200–$8,000 (median $2,500) · Insureon, Workers Compensation Cost

For your business: Espresso machines, grinders, and refrigeration equipment are expensive to replace. Property coverage is essential.

What it covers in general: Covers your physical business assets — building (if you own it), equipment, inventory, and furniture — against fire, theft, vandalism, and certain weather events.

Typical annual cost: $970–$1,570 (median $1,270) · Insureon, Commercial Property Cost

For your business: POS card data and loyalty program data create breach exposure.

What it covers in general: Covers losses from data breaches, ransomware attacks, and cyber fraud — including notification costs, credit monitoring for affected customers, legal fees, and regulatory fines.

Typical annual cost: $1,440–$2,160 (median $1,800) · Insureon, Cyber Liability Cost

For your business: Required only if you operate a delivery vehicle or catering van.

What it covers in general: Covers vehicles used for business purposes — work trucks, vans, cars driven to client sites — against accidents, liability, and damage. Personal auto policies specifically exclude commercial use.

Typical annual cost: $1,760–$2,940 (median $2,350) · Insureon, Commercial Auto Cost

For your business: Useful if a major incident (food poisoning, serious injury) could exceed standard GL limits.

What it covers in general: Adds an extra layer of liability coverage above your GL, Professional Liability, and/or Auto limits. Pays claims that exceed your primary policy limits.

Typical annual cost: $750–$1,500 (median $1,030) · Insureon, Umbrella Liability Cost

What does a typical 'spilled coffee' lawsuit actually cost?

Most are settled under $5K. The infamous McDonald's hot-coffee case ($2.7M, later reduced) is an outlier — that involved third-degree burns from coffee held above industry-standard temperature. Routine spills usually settle for medical costs plus a small pain-and-suffering payment. Your GL handles defense costs from dollar one.

Do I need separate coverage for the espresso machine if it's leased?

Read the lease — most equipment leases require either renter's insurance or proof of property coverage with a 'leased equipment' rider. The lessor wants their machine covered if your shop has a fire, regardless of who's responsible. The rider is usually $50-$150/year added to your BOP.

Does my Property coverage replace inventory if power goes out and milk spoils?

Only with a 'spoilage' or 'utility services interruption' endorsement. Default Property covers fire, theft, and physical damage but not power-loss spoilage. Add the endorsement if you carry more than $2K of dairy/perishables at any time — it's $80-$200/year and pays for itself the first time it's needed.