What Kind of Insurance Do I Need for a Coffee Shop?
- Nate Jones, CPCU, ARM, CLCS, AU
- Aug 29
- 3 min read
Starting a coffee shop is an exciting venture—but it also comes with risks. From hot coffee spills to equipment breakdowns, unexpected events can disrupt your operations and cost you money. That’s why having the right insurance coverage is essential for protecting your business, your team, and your customers.
At Wexford Insurance, we specialize in helping coffee shop owners get tailored insurance coverage designed specifically for the food service and hospitality industry. In this guide, we’ll walk you through the essential types of insurance your coffee shop needs to operate safely and legally.
Running a coffee shop involves:
Serving hot beverages and food
Managing employees
Operating expensive equipment
Interacting with customers daily
Without proper insurance, a single accident or claim could put your business at risk. Insurance not only protects your assets—it also builds trust with landlords, lenders, and customers.
Essential Insurance Coverage for Coffee Shops
This is the foundation of your coverage. It protects your business from third-party claims of:
Bodily injury (e.g., a customer slips on a wet floor)
Property damage (e.g., a coffee spill damages a customer’s laptop)
Legal fees and settlements
If you own or lease a physical location, this coverage protects:
Your building (if owned)
Equipment (espresso machines, grinders, refrigerators)
Furniture and fixtures
Inventory (coffee beans, cups, food items)
It also covers damage from fire, theft, vandalism, and certain natural disasters.
If you have employees, most states require you to carry workers comp. It covers:
Medical expenses for work-related injuries
Lost wages
Rehabilitation costs
Espresso machines and grinders are expensive to replace. Equipment insurance covers:
Mechanical breakdowns
Accidental damage
Theft or vandalism
This is especially important for high-volume cafés that rely on daily operations.
If your coffee shop offers delivery, catering, or uses a company vehicle, you’ll need commercial auto insurance to cover:
Accidents
Property damage
Liability claims
Additional Risk Management Tips for Coffee Shops
Beyond insurance, here are smart ways to reduce risk and protect your business:
1. Train Staff Thoroughly
Ensure all employees are trained in:
Food safety and hygiene
Equipment handling
Emergency procedures
Customer service standards
2. Maintain Equipment Regularly
Schedule routine maintenance for espresso machines, grinders, and refrigeration units to avoid costly breakdowns and service interruptions.
3. Implement Safety Protocols
Post clear signage for wet floors, use non-slip mats, and keep walkways clear to prevent customer and employee injuries.
4. Secure Your POS and Payment Systems
Use encrypted payment processors and regularly update software to protect customer data and prevent fraud.
5. Document Everything
Keep records of incidents, maintenance logs, employee training, and insurance policies. This helps with claims and compliance.
Final Thoughts
The right insurance coverage gives you peace of mind and protects your coffee shop from costly disruptions. At Wexford Insurance, we understand the unique risks of running a café and offer customized policies to fit your needs.
Ready to start a coffee shop?
Contact Wexford Insurance at 317-942-0549 to speak with a food service insurance expert.
