Cafe insurance is comprehensive cover that protects any cafe, tea shop, bistro or sandwich bar from unseen trouble that may be brewing.
The problem is that paying out a claim if you are uninsured could cripple your business and have a disastrous affect on your personal finances if you are a sole trader or partnership.
Cafe insurance covers the risk in a bundled package from a menu of options – starting with the basics and adding in extras to build a bespoke package for your business.
The basics are public and employer liability insurance – which is compulsory if you have any employees – and product liability cover.
The first two protect your business from anyone with a claim for accident, injury or even death as a result of visiting your premises. Product liability looks after issues like food poisoning.
Once you have looked after the basics, your business may need more protection – generally you can choose from this list:
- Fixtures & fittings – covering repairs and replacements outside normal wear and tear
- Stock cover
- Loss of money
- Goods in transit – if you make deliveries or handle outside catering
- Business interruption cover
- Buildings cover – if you rent premises, this is the landlord’s responsibility
These extras will come at an additional cost, but the small increase in your cafe insurance premium.
Some cafe owners also consider other general business cover as well – including insuring the front of premises, employee theft, legal expenses and business contents.
Buying cafe insurance is easier dealing with a specialist broker who understands the market.
The first step is putting together a cafe insurance package to suit your specific business needs.
Once you have two or three providers on a short-list, look at the differences between cover and costs and opt for the one that offers the best value for money.