How Much Does Business Insurance Cost For Coffee Shops And Cafes? 2025 Rates

In 2025, 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 & Cafe Insurance Cost?

The average coffee shop, or cafe, 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 costs can vary widely depending on your specific situation.

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

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Liquor sales (increases liability exposure)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)

Average Coffee Shop & Cafe 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

General Liability Insurance

The average cost of general liability insurance for a coffee shop business is about $60 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a customer slips on a wet floor and gets injured in your coffee shop, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

The cost of this insurance depends on several things, like the size of your coffee shop, where it’s located, how many customers you usually serve, whether you’ve had insurance claims before, and if you offer higher-risk activities like live music or outdoor seating.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $90 per month for cafes.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to the coffee shop and cafe’s building, furnishings, and kitchen equipment.

For example, if an electrical short causes a fire that damages your espresso machine, counters, and part of the cafe wall, a BOP would help pay for the repairs and equipment replacement.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the coffee shop’s property value, location risk (such as flood or crime rates), business revenue, number of employees, and type of food served.

Liquor Liability Insurance

The average cost of liquor liability insurance for cafes that serve alcohol is about $35 per month.

Liquor liability insurance covers claims related to injuries or property damage caused by a customer who was served alcohol at your cafe. For example, if your cafe offers wine or beer and a customer becomes intoxicated, then leaves and causes a car accident, liquor liability insurance could help cover legal costs and any damages you’re held responsible for.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Cost depends on the percentage of your revenue from alcohol sales, the type of alcohol served, staff training in responsible alcohol service, and previous liquor-related claims.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a coffee shop and cafe is around $100 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a barista slips on a wet floor and injures their back, workers’ comp would pay for their doctor visits and cover part of their wages while they take time off to heal.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

The cost of workers’ compensation insurance depends on things like how many employees you have, what kind of work they do (such as baristas, kitchen staff, or servers), your past history of workplace injuries, and whether you’ve put safety training or programs in place.

Commercial Auto Insurance

The average cost of commercial auto insurance for coffee shops and cafes is about $170 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if your cafe offers delivery and one of your drivers gets into an accident while dropping off an order, this insurance would help pay for vehicle repairs and cover any damage or injuries caused to others.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, whether deliveries are local or long-distance, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for deliveries.

What Factors Impact Your Coffee Shop & Cafe Insurance Costs?

Coffee shop and cafe 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 cafe 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 Business 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.

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.

Value Of Property And Equipment

Expensive espresso machines, furniture, ovens, and decor 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 cafe 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 cafe 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.

How To Lower Your Coffee Shop & Cafe Insurance Costs

Running a coffee shop or cafe comes with a lot of costs, but your insurance bill doesn’t have to be one of the biggest. While you can’t skip insurance altogether, there are smart and simple ways to lower your premiums without cutting back on the protection your business needs.

Here are some practical tips to help reduce your café’s insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately.

If you also need workers’ compensation or liquor liability insurance, bundling all three through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often give discounts to coffee shops and cafés that commit to a policy for the long term. Ask your insurance provider if they offer savings for signing a two- or three-year agreement instead of renewing every year. You might also get a lower rate if you pay your full premium upfront instead of spreading it out in monthly payments.

3. Implement Safety Measures

Accidents can be costly for both your coffee shop and your insurer. Taking proactive steps to reduce the risk of customer or employee injuries can help lower your insurance premiums over time.

For example, installing non-slip mats or flooring, using clear wet floor signs, keeping walkways clean and clutter-free, and regularly maintaining your coffee machines and other equipment can help reduce your general liability risk.

4. Create A Safe Working Environment

A strong safety program can help lower your workers’ compensation insurance costs. This includes training your baristas and staff on safe practices like handling hot drinks, using equipment properly, lifting heavy boxes or supplies the right way, following fire safety procedures, and keeping emergency exits clear.

When fewer accidents happen, there are fewer insurance claims, and that can lead to lower premiums over time.

5. Train Your Staff On Alcohol Service

If your cafe serves alcohol, be sure your team is trained in responsible alcohol service. Many states offer alcohol certification programs like TIPS or ServSafe Alcohol. Insurers may offer discounts to coffee shops & cafes that require this training, as it shows you’re proactively reducing liquor liability risk.