What is café insurance?
Realising your dream of opening up your own café, coffee shop or tearoom is incredibly rewarding. But it’s also essential that your small food and drinks business is protected from the very start.
Café insurance can cover claims for damages and legal costs made against you if a customer is hurt or their property is damaged at your café. If you employ staff, then you’re legally required to have employers’ liability insurance, which protects your café against claims if an employee is injured or becomes ill as a result of working in your café.
What type of insurance do I need?
Cafés can have a number of insurance needs that you’ll want to cover to ensure your business is protected in the event of unforeseen loss or damage.
You may have stock and kitchen equipment that you’ll want to protect against theft and damage, which will also need replacing quickly to keep the business running smoothly.
You'll also need to consider what cover is required to protect against claims from members of the public who visit the café.
And what would happen if you had to close for a period, for whatever reason? Any disruption to your business could be especially damaging if your loyal customers go and find a new favourite hang-out.
Here are a few different types of insurance that could help keep your café running smoothly:
- Buildings insurance Do you own the building where your café is located? If so, then you’ll need buildings insurance to cover the cost of repairing any damage to the structure of your building or rebuilding it, if necessary. If you rent the building, you won’t need buildings cover, as this will be the responsibility of your commercial landlord.
- Contents insurance You’re likely to have plenty of stock on site to keep hungry customers fed. You may also have expensive kitchen kit, furniture, pots, pans and crockery, all of which are essential for the day-to-day running of your business. Contents insurance will cover you against theft, fire or damage.
- Employers’ liability insurance This cover is a legal requirement if you have one or more employees (who aren’t direct family members) and offers protection if your employees are injured or become ill as a result of working for you.
- Public liability insurance If someone is injured on your premises or their property is damaged, public liability insurance could cover the cost of repaying them or any legal costs if a customer takes you to court.
- Business interruption insurance Having to close your café for a few days or even weeks is never ideal. But business interruption insurance can help cover loss of income while you get things up and running again.
Frequently asked questions
In what situations could café insurance help?
Whether you’re whisking up frothy cappuccinos, specialising in gourmet sandwiches or serving up freshly baked cupcakes, your café, coffee shop or tearoom is still open to a number of risks.
Here are some all-too-common scenarios in which the right type of insurance could help protect you and your business:
- A member of staff accidentally spills a cup of coffee onto a customer’s open laptop - public liability insurance could cover the cost of damages to your customer and their property.
- A customer falls ill because of something they ate in your establishment - product liability insurance could protect you if a claim is made against you.
- Your freezer breaks down overnight and you have to throw away partly defrosted food - contents insurance could cover your freezer as well as the ruined stock.
- Vandals break into your coffee shop and damage your espresso machine - new for old contents insurance could cover the cost of replacing it.
Consider what risks your business faces on a daily basis and how the right business insurance policy could offer peace of mind should an incident occur.
What extras should I consider?
Any extra cover you might want to add will typically increase the price of your premium. Depending on your business needs, you might want to consider the following add-ons:
- Legal expenses cover – this can help with legal costs, such as solicitors’ fees, if a claim is made against you. Some providers also offer a legal helpline and expert advice on a range of legal matters - from employment issues to health and safety.
- Money cover – this can protect any money you keep in the till or locked in a safe on the premises. In most cases it will also cover money in transit: for example, if you take the day’s earnings home or to the bank after cashing up.
How can I find a good deal on café insurance?
Just start a quote with us and we’ll help you find the most competitive prices for the different types of insurance you might need. Whether you own a café, coffee shop, tearoom or sandwich bar, comparing with us couldn’t be easier. Get a quote in just a few minutes to see if you can save.
What do I need to get a quote?
To get a quote, just send us some information about yourself and the type of business you run, including:
- how long you’ve been trading
- how many employees you have
- your claims history
- forecasted turnover for the next year.
You’ll also be able to choose the types of business insurance you want and tailor your quote to suit your needs. Once we have the information, we can send you a list of suitable quotes to compare.
What our expert says...
“When providing a service such as food and drink to members of the public, risks are increased and it’s important to ensure you have the right levels of cover in place. Also, when calculating the estimated value of your stock, make sure it’s based on how much it would cost you to replace, not the retail value. Take into account seasonal variations: for example, the overall value might be higher at Christmas.”
- Anna McEntee, Insurance comparison expert