Insurance for Cafés

Key takeaways

• Café insurance protects against risks like property damage, customer injuries, and food-related claims.

• Employers' liability insurance is mandatory if you have employees, covering work-related injuries or illnesses.

• Consider extras like money cover for cash on premises and legal expenses cover for potential legal claims to further protect your business.

What is café insurance?

Although running your own café or coffee shop sounds like an idyllic dream, the reality is that you’ll encounter some problems along the way – which you’ll need to be insured for.

By getting café insurance, you can make sure your small business is protected. It covers claims for damages, as well as any legal costs made against you in the event of a customer getting injured or having their property stolen or damaged at your premises.

In what situations would I need café insurance?

When running a café, there are many common risks where insurance will come in handy:

• A staff member accidentally spills coffee on a customer’s laptop – Public liability insurance will help cover the cost of their property

• A customer falls ill from eating something at your café – Product liability insurance can help protect you from any claims

• Your freezer breaks and your food is ruined – Contents insurance can cover your equipment, as well as any stock affected

Is insurance a legal requirement for cafés?

If you haven’t employed anyone to work at your café, then no – you’re not legally required to have any particular sort of business insurance.

However, if you employ any staff, you’re legally required to have employers’ liability insurance. This protects your business against any claims if an employee is injured or falls ill due to working in your café.

And even if it’s not a legal requirement, it’s still a good idea to get appropriate cover for your business. Without business insurance, you’ll be solely responsible for paying out any claims or settlements if a customer becomes ill as a result of your food, or if they’re injured at your café.

What type of insurance do I need?

There are a few different types of insurance you can get to keep your café covered:

• Buildings insurance – If you own the building where your café is situated, you’ll need business buildings cover to cover the cost of repairing any structural damage. However, you won’t need buildings insurance if you rent the building, as this will be the responsibility of your commercial landlord

• Contents insurance – This protects the stuff that’s integral to running your business, whether that’s kitchen equipment, furniture, utensils, crockery and general stock. You’ll be covered against theft, damage or fire

• Employers’ liability insurance – If you employ workers who aren’t direct family members, you’re legally required to get employers’ liability cover. This offers protection for work-related injuries or illnesses

• Public liability insurance – This covers costs if someone is injured on your premises or their property is damaged

• Business interruption insurance – If you have to close your café for a period of time, this helps cover the loss of income while you’re closed

What extras should I consider?

Depending on how you run your café, you may want to consider including add-ons to your insurance. These will usually increase the price of your premium.

• Money cover – This protects any money left on the premises, such as cash in the tills or in a safe. It may also cover money in transit, if you’re taking the money to cash at the bank

• Legal expenses cover – This can help with legal expenses if a claim is made against your business