Why do coffee roasters need insurance?
Roasting coffee beans can be deeply satisfying, but it also brings risks. Business insurance covers costs if a barista is burned by an espresso machine, or a faulty piece of equipment catches fire. It can also pay for lawsuits, auto accidents, data breaches, and theft.
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With Insureon, coffee roasters can get insurance coverage the same day they apply for quotes.
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What types of coffee roaster insurance do I need?
These insurance policies cover common risks at coffee roasting companies.
Business owner’s policy
A business owner's policy, or BOP, is an affordable way for coffee roasting companies to buy commercial property insurance and general liability coverage together.
- Customer bodily injuries
- Damaged business property
- Business interruption incidents
Workers’ compensation insurance
Most states require workers' comp for coffee roasting 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
Commercial general liability insurance covers common third-party risks, including claims that coffee from your roasting company caused an illness. It's required for most commercial leases.
- Slip-and-fall accidents
- Damaged customer property
- Product liability coverage
Commercial auto insurance
This policy covers financial losses from an accident involving your coffee roastery's delivery van 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 coffee roasting companies 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 coffee roaster insurance cost?
A small coffee roasting business with only a few employees will pay less for commercial insurance than a larger company.
Factors that can affect your coffee roaster insurance cost include:
- Whether you have a kitchen or storefront
- Value of your coffee roasting 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 coffee roaster insurance?
It's easy to get coffee roaster 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 coffee roastery, whether you work independently or hire employees.
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FAQs about coffee roaster insurance
Review answers to common questions about insurance for coffee roasters.
Will insurance cover my coffee roaster business if it's forced to close temporarily?
Yes, if you have business interruption insurance. This policy covers temporary closures related to a claim on your property insurance, such as a fire, vandalism, windstorm, or burglary.
Business interruption insurance helps pay for lost profits, employee wages, and day-to-day operating expenses until your coffee roasting company can reopen. Also called business income insurance, this coverage is often included in a business owner's policy.
In addition, you can buy equipment breakdown coverage to protect against financial losses related to the sudden breakdown of a coffee roasting machine, point-of-sale device, or other piece of equipment you depend on. However, it doesn't cover normal wear and tear. You can add it as an endorsement to a BOP.
Do coffee roasters need to have product liability insurance?
Though it's not required by state law, a product liability policy is crucial for coffee roasters. Depending on where you sell your coffee, you might also need it to sign a contract.
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 coffee from your roastery, 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, along with other claims that your product caused harm.
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 coffee roasters?
Owners of small coffee roasting companies should consider the following types of coverage to protect against their unique risks and liabilities:
- Commercial property insurance: This policy covers roasting machines and other business property, including your building if you own it. 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 a coffee roasting company might 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 roasting business's underlying policy.
- Commercial crime insurance: Crime insurance, such as a fidelity bond, protects your coffee roasting company and your customers from financial losses, including theft by dishonest employees.