Why do bagel shops need insurance?
A busy storefront and kitchen are a recipe for risk. Bagel shop insurance covers costs if a customer sues over food poisoning, or a baker suffers a burn. It can also pay for fires, theft, data breaches, and auto accidents.
Find the right coverage
Insureon helps bagel shops find insurance quotes that match their unique insurance needs.
Get free expert advice and peace of mind knowing you have the right property and liability coverage for your small business.
What types of bagel shop insurance do I need?
These insurance policies cover the most common risks at bagel shops.
Business owner’s policy
A business owner's policy, or BOP, is a discounted insurance package that includes both commercial property insurance and general liability coverage.
- Customer bodily injuries
- Damaged business property
- Business interruption incidents
Workers’ compensation insurance
Most states require workers' comp for bagel or coffee shop businesses that have employees. It also protects sole proprietors from work-related medical bills that health insurance might deny.
- Medical expenses from employee injuries
- Disability benefits
- Legal expenses from work-related injuries
General liability insurance
A general liability policy covers common third-party risks, including claims that a bagel or other product caused an illness. It's required for most commercial leases.
- Slip-and-fall accidents
- Damaged customer property
- Libel and other advertising injuries
Commercial auto insurance
This policy covers financial losses from an accident involving your bagel shop’s delivery van, food truck, or other vehicle. Each state has its own requirements for auto liability insurance.
- Medical bills from an accident
- Property damage from an accident
- Vehicle theft and vandalism
Cyber insurance
Also known as cyber liability insurance, this policy helps bagel shops recover from costly cyberattacks and data breaches, such as a ransomware attack.
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
How much does bagel shop insurance cost?
A small bagel shop with only a few employees will pay less for commercial insurance than a larger company.
Factors that can affect your premiums include:
- Type of business, such as bagel shop or bakery
- Value of your kitchen equipment and other property
- Business income
- Business location
- Types of insurance purchased
- Policy limits and deductibles
- Coverage options, such as an additional insured
How do I get bagel shop insurance?
It's easy to get bagel shop insurance or coffee shop insurance if you have your company information on hand. Our application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose a policy.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right insurance coverage for your bagel shop, whether you work independently or hire employees.
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FAQs about bagel shop insurance
Review answers to common questions about insurance for bagel shops.
Will insurance cover my bagel shop if it's forced to close temporarily?
Yes, you can buy insurance that covers forced closures caused by fires and other catastrophic events. This includes:
- Business interruption insurance helps cover lost profits, employee wages, and day-to-day operating expenses if your shop is forced to close due to a covered property claim. This includes closures from fires, vandalism, windstorms, and burglaries. Also called business income insurance, this coverage is often included in a business owner's policy.
- Equipment breakdown coverage protects against financial losses related to the sudden breakdown of a refrigerator, freezer, point-of-sale device, or other expensive equipment you depend on. However, it doesn't cover normal wear and tear. You can add it as an endorsement to a BOP.
Do bagel shops need to have product liability insurance?
Though it's not required by state law, you still need and should get a product liability policy. It might be required to sell your bagels at farmers' markets, festivals, or other venues.
Product liability insurance covers claims related to:
- Allergic reactions
- Food poisoning
- Defective products
- Marketing defects
Any business in the supply chain, from manufacturers to wholesalers and retailers, could be held responsible if a product causes harm. For example, if a customer gets sick after consuming a bagel or espresso at your shop, you could find yourself facing a lawsuit.
Product liability insurance helps pay for attorney's fees, court-ordered judgments, and settlements from product liability claims. It's usually included in your general liability policy.
Is food poisoning covered by insurance?
Yes, the product liability coverage in your general liability policy protects your small business from food poisoning claims due to undercooked or spoiled food.
Although general liability insurance covers food poisoning claims, it won't protect against the cost of replacing spoiled perishable goods. For that, look to food contamination and spoilage insurance. This coverage helps pay for loss of inventory if your refrigeration equipment unexpectedly breaks, or if an extended power outage forces you to throw out the contents of a fridge or freezer.
Food service businesses can add this coverage to their business owner's policy as an endorsement.
What other types of insurance are recommended for bagel shops?
Bagel and coffee shop owners can invest in the following types of coverage to protect against additional risks and liabilities:
- Commercial property insurance: This policy covers your storefront, kitchen, and every item in your bagel shop, including ovens and refrigerators. It protects against financial losses from fires, storms, and burglaries.
- Hired and non-owned auto insurance (HNOA): Your personal auto insurance won't cover business-related driving, which is why bagel shop owners need HNOA. This policy provides auto liability coverage for personal, leased, and rented vehicles used for work purposes.
- Commercial umbrella insurance: Umbrella insurance boosts the protection of your general liability, commercial auto, and employer's liability insurance, activating when the limit is reached on your bagel store's underlying policy.
- Commercial crime insurance: Crime insurance, such as a fidelity bond, protects your bagel shop and your customers from financial losses, including theft by dishonest employees.