Coffee insurance: 5 coverages for your retail shop

Coffee shops are unique spaces where people of all backgrounds come together to form community over warm — and sometimes cold — beverages. While community may be what coffee shops deliver, protecting them is our house blend. 

With over 75 years of experience in business insurance, we’ve learned what it takes to provide tailored business insurance coverage and true peace of mind to retail shop owners. As an insurance carrier, we offer a promise of protection to our policyholders — it’s even outlined in our vision, mission and values. 

Here are five coffee shop insurance coverages that may be essential for business owners across the country. 

General liability insurance

Liability insurance is an essential coverage for most any business policy. Unfortunately, accidents do happen and without commercial liability insurance, businesses could put themselves at risk when an incident occurs. Liability insurance helps protect retail coffee shop business from financial loss should they be liable for property or personal damage caused by the shop, operations or employees. 

Note: Lucky for coffee shop owners, a standard businessowners policy (BOP) combines liability and property insurance into one policy as both are needed to help fully protect retail business owners. 

Property insurance

Property insurance typically includes coverage on the building, exterior signs, fencing, garages and more. Other internal objects like machinery, equipment, furniture and inventory can also be covered under property insurance. The basis of any insurance policy — whether a BOP or a package policy — starts with liability and property insurance as they are essential to every business. 

Business income insurance

Also known as business interruption insurance, business income coverage helps protect against lost income when a coffee shop must shut down due to a covered peril, such as a fire, theft or robbery or wind and storm damage. Beyond lost profits, it can also help cover payroll, operating expenses, taxes and even debt payments — many people and companies that still need to be paid, even when disaster strikes. 

Are you a coffee shop owner? Find a UFG agent near you today to begin the conversation. We’re always here to help. 

Product liability insurance

Since coffee shops sell products to consumers every day, there’s always the possibility that a product could cause injuries or damage to someone or their property. Let’s say an employee of the shop accidentally uses spoiled milk or sells customers expired bakery items. The customer may get ill. If the coffee shop was found to be the cause, there could be a lawsuit at hand. Product liability insurance coverage could help pay medical and legal expenses if the shop is sued.

Contamination and spoilage coverage

Does the coffee shop keep a significant amount of inventory on hand or own multiple locations with a lot of overall supplies? Contamination and spoilage coverage may be a good add-on to help protect coffee shop businesses against power outages or equipment failures when storing perishable items. This can be especially helpful if they’re using older equipment and can also help cover cleaning costs for refrigerators, freezers and other appliances. 

Are you a UFG Insurance agent? Remember to speak with your marketing representative, branch underwriter or online underwriter for more information regarding any of these coverages.