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By: Dax Kastrin

Owner of Elemental Risk Management

505-933-6511

General Liability Insurance

Property Insurance

Worker's Compensation

Coffee roasters are responsible for roasting raw beans and distributing them to coffee shops and cafes. Both coffee roasters and cafes face common business risks that can easily be covered by insurance. Running these businesses without insurance is extremely risky as they may have to pay hundreds of thousands of dollars in legal and settlement costs in case they are sued.

Read on to find out what insurance is needed for coffee roasters & cafes so you can protect your business from hefty lawsuits and claims.

What Insurance Is Needed for Coffee Roasters & Cafes?

1. General Liability Insurance

General liability insurance is the most common type of insurance policy that businesses get. This policy protects you against common business risks, such as bodily injury, medical expenses, property damage, legal defense and judgment, and advertising or personal injury.

Let’s say a customer trips over a sack of coffee beans and ends up fracturing their arm. If they decide to file a claim or lawsuit against you as the incident happened at your premises, your general liability will cover their medical expenses as well as any legal costs you may have to pay.

Although your state may not legally require you to get general liability insurance, operating without this policy is a bad idea. Not only are you exposing yourself to serious risks, but you will also not be able to get leases or contracts as property owners require general liability insurance when leasing their properties. For instance, if you are out to get a cafe space on lease, the owner may ask you to carry general liability insurance to qualify for it.

2. Commercial Property Insurance

Commercial property insurance protects all the physical assets that you own as a coffee roaster or a cafe owner. This may include the premises itself, the equipment you use, the supplies and inventory you stock, and all the other contents that are present at your premises, such as the fence, the door, the signboard, etc.

Since coffee roasters have huge lines for electric and gas supply, the risk of fires is very high. Therefore, you should always have commercial property insurance to get coverage for property damage caused by fire, theft, vandalism, flood, or any other event.

The commercial property insurance not only covers the repair costs of your property but also offers coverage for the replacement expenses in case any element on your property is beyond repairs.

3. Commercial Auto Insurance

Commercial auto insurance offers coverage for any accidents caused by a business-owned vehicle. Coffee roasteries and cafes use delivery vans and bikes to carry out deliveries. If these vehicles are involved in an accident, the commercial auto insurance will not only cover the medical expenses of the affected parties but also offer coverage for legal claims filed by a third party or property damage that may have occurred by accident.

This type of coverage protects both your employees who are driving the company-owned vehicle and the third-party individuals who are affected by an accident. So make sure you have commercial auto insurance as the repair costs of property damage can be pretty high.

4. Product Liability Insurance

Product liability insurance protects businesses from any risks that are directly related to their products. For instance, this type of policy protects the business from claims arising from any damage or injury that may have been caused by the product.

If some debris, stone, or an unexpected element gets mixed with the coffee beans and ends up in a customer's stomach, causing them pain or discomfort, they may file a lawsuit against you. If you have product liability insurance, it will protect you from these types of lawsuits and cover the legal and settlement costs.

You can get product liability insurance on its own or as a part of a bundle policy.

5. Workers’ Compensation Insurance

As a coffee roaster or a cafe owner, you may have employed a number of workers to help you out. Every business that employs workers must get workers’ compensation insurance. This type of insurance protects employees from any injuries and property damage that may occur at work. A workers’ comp policy also offers them compensation for the days lost due to their inability to work.

Let's say an employee ends up burning their hand while making coffee. They will require immediate medical attention and may also have to rest up for weeks. During this time, when they are not working, they will be losing their income. In this case, their workers' compensation policy will offer them coverage for lost wages and also cover all their medical and rehabilitation expenses.

6. Equipment Breakdown Coverage

Coffee roasters and cafes use a wide variety of equipment and machinery to roast, store, weigh, package, and brew coffee. This equipment is quite expensive, and if it breaks down, you will not only have to pay thousands of dollars to get it fixed but will also lose income during this downtime.

This is where an equipment breakdown coverage policy comes in. Also known as boiler and machinery coverage, this policy reimburses you for the expenses related to accidental and sudden breakdown of equipment and machinery.

Since equipment breakdown costs are not covered by your commercial property insurance, equipment breakdown coverage is essential for coffee roasters and cafes. It covers the repair or replacement costs of the equipment and also reimburses you for the income lost during the downtime.

Final Thoughts

You now know what insurance is needed for coffee roasters & cafes. However, there are also some other types of coverages that your business requires depending on your specific needs. Reach out to a reliable insurance partner like Elemental Risk Management to discuss your needs and get tailored policies to cover you against any and all the risks involved in your business. Your insurance provider will properly guide you about the right policies depending on your industry.

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