Your Guide To Cafe & Coffee Shop Insurance

What’s your signature coffee? What cake sells like, well, hotcakes? What do customers love most about your cafe? We’re sure that we’d get an array of answers from coffee shop and cafe owners from across the country, but if we asked what you’re most worried about, we reckon your answers may be similar. A hefty compensation claim. Keeping the business afloat. How to restore trust? These are reasonable concerns, though luckily ones that can be mitigated with a suitable policy in place. We know that finding the right coffee shop insurance quote or cafe insurance quote can seem impossible at times, which is why we created this guide to help explain the policies that they can include. And if you have any further questions, we’d be happy to help in any way we can. Simply get in touch with us and we can offer even greater insight, and your very own insurance quote too.


What is cafe insurance and how does coffee shop insurance differ?

Cafe business insurance offers cover in one single policy, and can comprise a range of key covers. Falling under policies such as Tearoom Insurance, Sandwich Shop Insurance and Bistro Insurance, can be cover including: Public Liability, Product Liability, Employers’ Liability Insurance and Business Interruption, as well as Business Legal Protection, Personal Accident Insurance and Portable Equipment Insurance. Designed for a vast range of coffee shop owners and cafe managers, these insurance policies can provide protection from unexpected events, and be tailored to your distinct range of business operations.

We know you adhere to strict safety protocols, and that you’d never intentionally harm any customers. We also know you can’t plan for every unexpected event, even if you’ve been through a few already. Whatever occurs, you don’t want to have to foot the bill, and pay expensive compensation. What impact could that have on your business? Not a good one, we can imagine.

By including a range of policies under one policy, it also makes the insurance claims process, as well as the renewal process, much easier. A cafe insurance policy means you only have one policy to deal with, and one renewal date to remember. Running a cafe can be stressful enough, but there’s no reason your insurance policy has to be.

Coffee shop insurance is actually very similar to cafe business insurance, in that similar levels of cover can be provided. The type you’ll require will depend on what your business actually is and what it sells, among other variables. In general, a coffee shop is a business that solely focuses on coffee, and will have different brewing methods, traditional espresso beverages, and most also have a selection of tea offerings. In cafes however, the main focus is on food rather than coffee, though most cafes will offer coffee pairings on their menus. Therefore, the amount of stock cover you need will vary depending on the type, as well as whether you require portable equipment cover and whether you own the premises.


What insurance does a cafe, or coffee shop need?

From Cafe Insurance, Tearoom Insurance and Sandwich Shop Insurance, through to Internet Cafe Insurance, Roadside Cafe Insurance, Bistro Insurance and Coffee Van Insurance, there is a range of policies around. This cover this can incorporate includes:


1) Stock & Contents Insurance: To run effectively, you’ll have plenty of stock to help keep hungry and thirty customers happy. You’ll also have potentially expensive kitchen equipment, pots, pans and crockery, all of which are imperative for the day-to-day running of your business. Providing compensation for any loss, damage or theft done to your contents, as well as any losses due to refrigeration faults, electricity failures and dishonesty caused by staff members, Stock & Contents Cover can be extensive and comprehensive. Thinking about things, could you afford to replace all this without an insurance policy in place?

At The Insurance Octopus, we can also cover the business equipment used to run your cafe or coffee shop under this policy, including point of sale systems, computer systems and necessary machinery such as ovens and microwaves. 


2) Business Legal Protection: This cover protects your business against any legal costs brought by or against your cafe or, pays for your commercial legal expenses. Our cover provided by ARAG, will see you right, and reduce the financial burden of litigation, whether it is brought about by clients, staff members or suppliers. Our Legal Expenses Cover Includes:

  • Employment disputes and compensation awards.
  • Legal defence.
  • Property protection.
  • Tax protection.
  • VAT disputes.
  • Contract disputes.

We also offer all of our customers with a ‘Business Legal Services Online’ portal, where you can download a variety of key legal documents. To support employment dispute cases, we also offer a ‘Counselling Helpline’, where we’ll pay for trained counsellors to offer emotional help and support over the phone, should you, or your staff, require it.


3) Portable Equipment Cover: Think of all the great appliances that you use on a daily basis. Coffee makers. Kettles. Coffee grinders. Blenders. Decanters. Ice tea brewers. Countertop ovens. Timers. Condiment organisers – all this, and likely a lot more. Along with business items such as laptops and mobile phones, there’s a lot of important portable equipment onsite, and that you take with you offsite. Without them, you may find yourself in a bit of a pickle. Therefore, should they be broken or stolen, this cover can provide compensation or replacements


4) Seasonal Increases: Sell specialist drinks at Christmas, that require certain ingredients? What about spring-themed cakes at Easter that always bring in the customers? Or maybe you like to serve pumpkin-flavoured teas and coffees during Autumn? Whatever makes your cafe different, it’s likely you order varying quantities of ingredients throughout the year. To ensure you can always manage demand, it’s important that you have enough stock. It’s also important to remember that if your current policy only protects you for a specified amount of stock, then you should cover any increases to protect it in the event of loss, damage or desolation. This cover means that your insurers will uplift your stock sums insured at certain times of year in the event you forget to tell them about the increased stock.

5) Fixtures & Fittings Cover: For many people, your cafe is the place they regularly choose to meet up with friends and family, providing the setting for important discussions, a rest after a run, or the place they go to for a slice of their favourite cake. You may not realise it, but the decor plays a big part in how comfortable your clientele feel in your cafe – the comfy chairs, the sturdy tables, the artwork, and the display cases all add to that ambience. Fixtures & Fittings insurance covers loss of, and damage to all of this, as well as any structures you may have built yourself.


6) Employers’ Liability: And what also adds to the great ambience of your cafe? Your cafe staff of course! Your team are the ones providing great customer service, ensuring that clients feel welcome, and that the place is kept clean and tidy. Serving up delicious food and cakes, which they may have created themselves, they keep your business in business, and you know that deep down, you owe a lot to them. That’s why Employers’ Liability is so important – keeping them safe and protected should they suffer an accident at work. It’s no wonder therefore that there’s a legal insurance requirement for you to have at least £5 million cover to compensate your staff for any injury they may suffer while working for you – whether that be physical or mental. At The Insurance Octopus, our Employers’ Liability comes with £10 million as standard, protecting your staff, and your business.

Cafe insurance can also provide Product Liability Insurance, Public Liability Insurance and Business Interruption Insurance, among other helpful policies. It’s important that with all policies that you check the specific terms and conditions outlined so that you know the exact cover you have, and not be left with any nasty surprises when you need the cover the most.


Coffee shops tend to require many of the same policies as cafes, such as Product Liability, Employers’ Liability and Public Liability, as well as Business Interruption Insurance. Other insurance policies that coffee shop owners may be interested in, can include:

For more information on our coffee shop insurance policies, please get in touch with us today.


The benefits of cafe & coffee shop insurance, and your questions answered

A cafe insurance or coffee shop insurance policy offers many benefits, including:

  • Under one helpful policy, they can protect your business from risks such as Employers’ Liability, Product Liability and Loss of Money, as well as provide cover for damaged stock, stolen contents, and business interruption. These policies also ensure that any losses incurred are minimal, and that normal business operations can resume as swiftly as possible.
  • Policies can be tailored to the size of your business (e.g. boutique coffee shop vs. chain of cafes), the number of staff, business operations, and location. They can be tailored to suit the specific needs of your business too, ensuring that all facets are covered. For example, a themed coffee shop, sandwich shop and internet cafe will all have differing needs.


The most popular questions relating to these policy types include:

Why do I need cover for my cafe or coffee shop?

No matter how careful you are, accidents happen and that could mean hefty compensation claims can occur too. Every visitor and employee is your responsibility, and if one suffers an accident or injury, then you are legally required to compensate them. What if a flood damaged your equipment? What if your stock were spoiled due to an unexpected power cut? What if you are victim to theft? For all of these questions and more, cafe business insurance or coffee shop insurance can help keep your business protected, and give you peace of mind knowing that should something unfortunate happen, you are safe.


What types of cafes and coffee shops do you cover at The Insurance Octopus?

We protect a variety of cafes and coffee shops here at The Insurance Octopus, providing Cafe Insurance, Coffee Shop Insurance, Tearoom Insurance, Sandwich Shop Insurance, Internet Cafe Insurance, Roadside Cafe Insurance, Bistro Insurance and Coffee Van Insurance – among other types. If you’re unsure about whether we’d cover your specialist business, we encourage you to contact us on 0161 968 2060 today and we’ll answer any questions you have about our policies, and provide you with a range of relevant cafe insurance quotes or coffee shop insurance quotes.

Do you offer money cover?

We certainly do. Loss of Money cover ensures that you’re insured against losses caused by unexpected, violent or forceful means, allowing you to maintain your financial stability, and reducing the impact on your business. At The Insurance Octopus, we can provide cover for: money stolen during business hours; money stolen while in a bank night safe; money stolen while locked in a safe while your shop is closed; money stolen while not in a locked safe while closed; and money stolen while in transit.


Get In Touch With The Insurance Octopus 

Regardless of whether you run a tea room, bistro, cafe, coffee shop or sandwich shop, an insurance policy can help to keep you protected. We hope this guide has helped shed light on any aspects of the policy you were uncertain about, and if you’d like one yourself, we can help. We encourage you to get in touch with us today on 0161 968 2041 for your very own cafe insurance quote or coffee shop insurance quote.