How Much Does Coffee Shop Insurance Cost? 2025 Rates

U.S. coffee shops and cafes can expect to pay $780 annually for comprehensive business insurance, averaging $65 per month. The primary cost drivers are the type of food and drinks served, size of your business, location, value of property & equipment, employee count, history of past claims, and extra features or services.

How Much Does Coffee Shop & Café Insurance Cost?

The average coffee shop, or café, in the U.S. pays around $780 per year for a full business insurance package. That breaks down to roughly $65 per month. However, this is just a ballpark range and actual business insurance costs can vary widely depending on your specific situation.

Every coffee shop, or café, has its own unique risks, so insurance costs are not the same for everyone. A small café with no employees and basic coffee service will usually pay much less than a large, busy café that serves hot meals, outdoor seating, delivery, and has several staff members.

Things like the food and drinks you serve, your opening hours, the value of your equipment, and your location all affect how much you’ll pay for insurance.

For example, cafes in cities with more crime or lawsuits may have to pay more for liability insurance. Also, a café with ovens or fryers will likely have higher property insurance costs because of the greater fire risk, compared to a simple coffee bar with just an espresso machine.

Other drivers include the insurance type you have, where your coffee shop is located, your annual revenue, and the type of food/beverages you sell.

Average Coffee Shop & Café Insurance Costs For Coverage Types

When it comes to protecting your coffee shop, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan.

Here’s a closer look at the major coverages most coffee shops & insurances need.

• General liability insurance: $60 per month
• Business owner’s policy: $90 per month
• Liquor liability insurance: $35 per month
• Workers’ compensation insurance: $100 per month
• Commercial auto insurance: $170 per month

Business Owner’s Policy (BOP)

Coffee shops that want both liability protection and coverage for their building, café space, furnishings, kitchen equipment, and espresso machinery often choose a Business Owner’s Policy. The average cost of a BOP for a coffee shop is about $90 per month.

A BOP combines commercial property insurance with general liability, offering financial protection if a customer is injured in your café or if your business suffers property damage from events like fire, vandalism, kitchen equipment failures, or electrical issues. If a power surge damages refrigeration units, grinders, and display cases, this policy can help pay for replacements and repairs.

Typical liability limits included in a BOP are $1 million per occurrence and $2 million aggregate, while property coverage limits depend on the value you insure.

Costs vary based on things like equipment cost, seating size, whether food preparation is involved, number of employees, local crime exposure, and business revenue.

Here is a breakdown of average yearly premiums for 10 states:

Note: Estimates are approximate annual BOP premiums for coffee shop operations based on market-average rates; actual premiums will vary with location, revenue, property value, coverage limits, and other underwriting factors

General Liability Insurance

General liability insurance for a coffee shop averages about $60 per month and protects against third party injuries, accidental property damage, and advertising claims. This is usually the first policy a café owner purchases because spills, hot beverages, crowds, and slick floors increase customer risk.

If someone burns themselves on a hot drink or slips near the counter, this coverage can pay medical expenses and legal fees.

Most policies for coffee shops carry limits of $1 million per occurrence and $2 million aggregate.

Pricing depends on café size, foot traffic volume, location, whether outdoor seating is offered, past claims, and whether live events or tastings are hosted.

Here are sample annual premium estimates across 10 states:

Note: Estimates reflect typical annual general liability premiums for coffee shop operations in each state; actual premiums will vary with revenue, menu offerings, claims history, location, and chosen limits.

Workers’ Compensation Insurance

Coffee shops with employees generally need workers’ compensation coverage, which averages around $100 per month.

Workers’ comp helps cover medical treatment, wage replacement, and rehabilitation if an employee is injured on the job. Common café injuries include steam burns, knife cuts, slips near dishwashing stations, and lifting strain when unloading supplies.

Each state regulates benefits, but policies usually cover medical costs and a share of lost wages without a fixed cap.

Pricing is affected by payroll size, job duties, past claims, and workplace safety procedures.

Average annual premiums by state include:

Note: Estimates are approximate annual workers’ compensation premiums for coffee shop operations; actual premiums will vary with payroll, classification codes, state rules, safety programs, and claims history.

Liquor Liability Insurance

Some coffee shops serve wine, cocktails, or beer alongside their beverage menu. For shops that sell alcohol, liquor liability insurance averages about $35 per month.

This coverage protects the business if a customer consumes alcohol on the premises and later causes injury or damage. If a guest has a glass of wine during a live music night and is later involved in a car accident, liquor liability insurance can help cover legal and settlement expenses.

Limits commonly start at $1 million per occurrence and $2 million aggregate.

Rates depend on alcohol sales percentage, type of beverages offered, staff certification, and past incidents.

Here are average annual costs in 10 states:

Note: Estimates are approximate annual liquor liability premiums tailored to coffee shop operations in each state; actual premiums will vary with alcohol sales volume, limits selected, claims history, staff training, and other underwriting factors.

Commercial Auto Insurance

Coffee shops offering catering, wholesale pastry delivery, or mobile coffee service may need commercial auto coverage. The average cost is about $170 per month.

This policy pays for repairs and liability if a business vehicle is involved in a collision, is vandalized, or is stolen. If a delivery driver crashes while transporting bulk beverage orders to an office client, commercial auto insurance helps cover costs.

Premiums are influenced by how many vehicles a shop owns, mileage, type of vehicle, driving records, and whether staff use personal cars for work, which may require hired and non owned auto coverage.

Here are sample annual averages across 10 states:

Note: Estimates are approximate annual premiums for commercial auto coverage tailored to coffee shop operations in each state; actual premiums will vary with fleet size, vehicle use, driving records, coverage limits, and other underwriting factors.

Coffee Shop Business Insurance Costs By Provider

Coffee shop business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: Estimates are based on average annual premiums for coffee shop businesses; actual premiums will vary by location, revenue, menu, equipment value, staff, and coverage selections.

What Factors Impact Your Coffee Shop & Café Insurance Costs?

Coffee shop and café insurance premiums are carefully calculated by insurance underwriters based on your business’s level of risk. Everything from the types of drinks and food you serve to your shop’s location, size, and claims history can affect how much you’ll pay for coverage.

The more potential risks your business has, the higher your premium is likely to be.

Type Of Food And Drinks You Serve

If your café serves just coffee and pastries, your insurance may be lower. But if you offer hot meals, deep-fried items, or alcohol, the risk of fire, injury, or liability increases, and so do your insurance costs.

Size Of Your Coffee Shop/Café And Revenue

Larger coffee shops with more customers and higher sales often pay more for insurance. That’s because more business usually means more chances for accidents, injuries, or claims.

Coffee Shop Location

Where your shop is located can impact costs. Busy city centers or areas with high crime or strict regulations may increase your premiums. Quieter, low-risk neighborhoods often cost less to insure. This also ties to your foot traffic, or regular traffic patterns if your coffee shop does delivery services.

Value Of Property And Café Equipment

Expensive espresso machines, furniture, ovens, and décor cost more to replace if damaged or stolen. The more valuable your equipment and property, the more you’ll pay for coverage.

Number Of Employees

The more people you employ, the higher your workers’ compensation costs. More employees also increase the chance of workplace injuries or employee-related claims.

Opening Hours

If your café stays open late or runs 24/7, you might pay more for insurance. Late hours can lead to more accidents or security issues, especially if alcohol is served.

History Of Past Claims

If you’ve filed insurance claims in the past (like for fire, theft, or customer injuries), your provider may see your business as high risk, which raises your premium. A clean history helps keep costs low.

Extra Features Or Services

If your café offers extras like a drive-thru, outdoor seating, live music, or free Wi-Fi, your risks go up. These features can lead to more customer traffic, injuries, or liability, which may increase insurance costs.