How Much Does Ice Cream Shop Insurance Cost? 2025 Rates

Ice cream shop owners in the U.S. generally spend between $540 and $720 per year on business insurance. That comes out to about $45 to $60 each month.

What Influences Premiums

Several factors determine how much coverage will cost:

• Location – Shops in busy cities or high-risk areas often pay more.
• Business size – Larger stores with more customers and higher sales usually face higher premiums.
• Equipment value – Freezers, mixers, and other specialized equipment raise property insurance costs.
• Number of employees – More staff increases liability and workers’ compensation expenses.
• Coverage limits – Higher limits provide stronger protection but also increase monthly payments.
• Claims history – A clean record helps keep costs down, while past claims can raise rates.

Why It Matters

Understanding these cost drivers helps ice cream shop owners budget wisely and choose coverage that matches their risks. With the right plan, they can protect their business without overspending.

How Much Does Ice Cream Insurance Cost?

On average, ice cream shops spend between $540 and $720 per year on business insurance. That equals about $45 to $60 each month. These figures are only estimates, and the actual premium depends on the details of your shop.

Why Costs Differ

No two ice cream shops are alike. A small shop with basic equipment and no employees will usually pay far less than a busy location with multiple staff and expensive machines.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Property size and value – Larger shops or those with high-value equipment face higher property insurance costs.
• Number of employees – More staff means greater liability exposure and higher workers’ comp expenses.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Equipment and Location

The type of equipment you use and where your shop is located also matter. A shop with hot equipment like waffle cone makers or fryers may have higher property insurance costs than one that only serves soft-serve from a basic machine. Likewise, shops in busy cities with higher crime or legal risks often pay more for liability coverage compared to those in quieter, low-risk areas.

Why This Matters

Understanding these variables helps ice cream shop owners estimate insurance needs more accurately and budget for the real costs of protecting their business. With the right coverage, you can safeguard your shop without overspending.

Average Ice Cream Shop Insurance Costs For Coverage Types

When it comes to protecting your ice cream 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 ice cream shops need.

General liability insurance: $45 per month

Business owner’s policy: $109 per month

Workers’ compensation insurance: $50 per month

Commercial auto insurance: $175 per month

General Liability Insurance

The average cost of general liability insurance for an ice cream shop is about $45 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if you accidentally use a copyrighted image or slogan in your ice cream shop’s ad or social media post, and the original owner sues you for copyright infringement, general liability insurance can help cover your legal defense and any settlement costs.

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

Factors that influence the cost include the business size, location, customer traffic volume, previous claims history, and any additional insured endorsements you select.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for ice cream shop businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $109 per month for an ice cream shop.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your building, furniture, and equipment. For instance, if an electrical issue causes a fire that damages your freezers, serving counter, and interior walls, the BOP would help cover the cost of repairs and replacing damaged equipment.

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 business property value, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national BOP premiums for ice cream shop businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on business size, services offered, claims history, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for an ice cream shop is around $50 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee slips on a spilled milkshake and injures their back while cleaning the floor, workers’ comp would help pay for their doctor visits, treatment, and a portion of their lost wages while they recover.

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

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation premiums for ice cream shop businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for an ice cream shop is about $175 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if you use a company van to deliver tubs of ice cream to local events or catering clients and an employee gets into an accident, this policy would help cover the repair costs and any third-party injury or property damage claims.

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

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for ice cream shop businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, and insurer underwriting practices.

Ice Cream Shop Business Insurance Costs By Provider

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

Note: These estimates are based on average small business insurance costs for food service operations like ice cream shops, typically including general liability, property coverage, and business owner’s policies. Actual premiums will vary depending on factors such as location, shop size, equipment value, claims history, and coverage limits.

What Factors Impact Your Ice Cream Shop Insurance Costs?

Insurance premiums for ice cream shops are set by underwriters who assess the overall risk of your business. Factors such as the type of shop you run, your location, equipment value, staffing levels, and claims history all play a role in determining how much you’ll pay.

Equipment And Property Value

High-value assets like freezers, soft-serve machines, or custom décor increase property insurance costs. Many shop owners also add coverage for equipment breakdown or spoiled inventory to protect against unexpected losses.

Claims History

A history of frequent claims can raise your rates, as insurers see this as a sign of higher risk. Maintaining a clean record often helps secure discounts and lower premiums.

Type Of Ice Cream Shop

Not all shops face the same risks. A small scoop shop with limited staff usually pays less than a busy store that also offers catering, events, or operates a mobile ice cream truck.

Coverage Limits And Deductibles

Choosing higher coverage limits provides stronger protection but increases premiums. Opting for a larger deductible can reduce monthly costs, though it means paying more out of pocket if a claim arises.

Location

Where your shop is based matters. Stores in busy cities, high-crime areas, or flood-prone regions often pay more for liability and property coverage. Shops in quieter, low-risk neighborhoods typically benefit from lower premiums.

Size Of The Shop

Larger operations with more employees, equipment, and customer traffic face higher risks. Bigger teams also increase workers’ compensation costs, which adds to overall insurance expenses.

How To Lower Your Ice Cream Shop Insurance Costs

Owning an ice cream shop comes with plenty of expenses, but your insurance premiums don’t have to be overwhelming. While coverage is essential, there are smart ways to cut costs without losing protection.

Raise Your Deductible

Choosing a higher deductible can reduce your monthly payments. Just make sure you can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage is one of the easiest ways to save. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a lower rate than buying them separately. Adding workers’ compensation through the same provider can unlock additional discounts and simplify paperwork.

Ask About Discounts

Insurers often reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build A Safer Workplace

Accidents can quickly drive up insurance costs. Keeping floors clean and dry, storing equipment properly, posting warning signs, and training staff on safe food handling all help reduce risks. Fewer accidents mean fewer claims, which lowers liability premiums over time.

Create A Strong Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on proper lifting techniques, safe use of equipment, and wearing slip-resistant shoes reduces injuries. When fewer claims are filed, premiums stay lower.