Specialist café and coffee shop insurance can cover your establishment for the unique risks you will face when preparing and serving hot drinks and food to the public.
Read our guide to how café and coffee shop insurance works, and what it covers.
If you are shopping around for your first policy, or you are looking to renew an existing policy, in this post we will outline some techniques for reducing the cost of your café and coffee shop business insurance.
What Can Affect The Price of Café and Coffee Shop Business Insurance?
- Coffee shop location – If your coffee shop is in an area with relatively high crime rates, it can increase the risk of theft, which can increase the cost of cover.
- Number of staff – If you employ any staff, you will have a legal requirement to get employer’s liability insurance. The more staff you have, the more this might cost you.
- Shop size – The bigger your coffee shop, the more your insurance will cost. A larger shop will cost more to repair following an incident such as a fire or a flood. Plus, the more customers you can serve and seat at once, the greater the risks of slips, trips, spillages, and other accidents. This can make claims more likely, which can result in higher premiums.
- Food – If you serve food alongside your coffee, for example, you may have to pay more for cover.
- Extras – Many other factors can affect the price of your policy. If you put on events at your coffee shop, such as live music or poetry performances, it can mean more risks, which can mean higher premiums.
How to Reduce Café and Coffee Shop Business Insurance Costs
If you want to bring down the costs of your café and coffee shop business insurance, there are a number of things that could help.
Invest in Security
If your café is in an area with relatively high crime rates, investing in extra security can help reduce your cover. This might include roll shutters, extra secure locks, CCTV, alarms, and so on.
Invest in Training
Certain types of staff training can also help bring down the cost of cover. A skilled barista may be less likely to spill a drink on a customer or their property, and they may be less likely to prepare drinks or food that could result in food poisoning or other unwanted effects. Plus, training your staff to spot security risks can help reduce losses from theft, which could reduce your premiums.
Choose How You Pay
Pay Annually
You can often make a saving on your cover if you pay in an annual lump sum, rather than in monthly instalments.
Consider Combined Policies
Some insurers also offer discounts if you buy combined policies rather than separate policies. For instance, you could pay less for a combined buildings and contents policy than you would for getting each policy separately.
Consider Higher Excesses
You could also save money on your premiums through offering to pay a higher excess. However, this can be a risky move. If you ever have to make a claim on your policy, a higher excess could mean that your settlement will not be lower than you expected.
Use an Insurance Broker
If you buy an off-the-shelf insurance policy, you may end up paying for some forms of cover that you do not really need. Or worse, you may find you are underinsured for certain risks.
Talk to an insurance broker, and they will take the time to understand your cover requirements. They will then help you get a tailored policy that meets all of your needs at a price you can afford.
Get Bespoke Cover For Your Coffee Shop From James Hallam
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your café or coffee shop.
Whether you run a single coffee shop, a chain of coffee shops, or a mobile coffee van, we can help you get the insurance you need at the best price.
Learn more about how we can support your Coffee Shop or Café.