Coffee roasters are specialty retailers who source green coffee beans from farmers and roast them into unique flavors and varieties on-site. Most coffee roasters operate packaged coffee stores that sell their small-batch creations to consumers and restaurants. What’s more, some coffee roasters operate a tasting room or full-service coffee shop serving drinks with their own unique blends.
Like any business owner, coffee roasters need a trusted adviser who can help them find the best business insurance coverage to protect their livelihood from the many potential and costly problems that can arise.
Whether it is dangers to the general public or your employees, or unforeseen events like fires, storms, and theft, you need the right combination of coverage that addresses whatever you might be exposed to.
An independent insurance agent will get to know you and your business. They can work with multiple reputable insurance companies who specialize in businesses like yours.
Why Do I Need Coffee Roasters Insurance?
Coffee roasting is the process of turning raw coffee beans into the dark, crunchy beans used to make coffee. Roasting coffee involves heating the raw beans very rapidly at very high temperatures until they reach peak perfection. The roasted beans are quickly cooled, and they can then be packaged and sold in bulk or in smaller portions for individual consumers.
If you are a coffee roaster, you’ve probably spent a great deal of time and money setting up your business. You’ve had to hire employees, rent or buy equipment, purchase furnishings and décor, source your beans, procure your packaging materials and other supplies, and perfect your recipes and techniques.
Yet so much of what can go wrong is entirely out of your control. At any time, your hard work can be jeopardized if you don’t have the right insurance coverage.
What Does Coffee Roasters Insurance Cover?
Coffee roasters insurance helps you protect your investment in your business when something goes wrong. You need coverage for property losses after a fire, a severe storm, or a break-in. And you need additional protection in the event that someone is injured on your premises or as a result of consuming one of your coffees.
Here are just a few things that can go wrong that should be addressed with coffee roaster insurance:
- A customer or supplier slips and falls in your retail store or café.
- Guests in your store or tasting room damage furniture, bathrooms, display cases, or equipment.
- Packaged coffee, hot coffee drinks, or other food or ingredients are contaminated or spoiled.
- Breakdown of coffee roasters, packaging equipment, espresso machines, or any other essential equipment.
- Fire, extreme weather, or a natural disaster.
- Theft or vandalism by customers or employees.
What Does Property Insurance Cover?
Commercial property insurance helps you pay to repair and replace damaged property if you have a fire, if a lightning strike zaps your electronic equipment, or if a tornado wipes out your whole building. Commercial property insurance covers things like:
- Buildings and their contents, including coffee beans, packaging materials, cups, café or tasting room furniture, computer systems, and more
- Equipment like coffee roasters, destoners, scales, packaging equipment, refrigerators freezers, and more
When you have a property loss, it’s likely that you might also have to close down for a while in order to make repairs or rebuild. In these cases your business interruption insurance, which is usually part of a commercial property policy, helps replace lost income during the shutdown period. It also covers some of your ongoing expenses like rent, employee, salaries, utility bills, and more.
What Is Equipment Breakdown Coverage?
You use several types of equipment that is essential to roasting, weighing, storing, and packaging coffee. You also use a variety of kitchen equipment if you operate a full-service coffee shop or café.
It’s important to ensure that all of your roasters, destoners, espresso machines, refrigerators, and ovens remain in good working order. If something essential breaks down, you could face a loss of income during the downtime, as well as significant repair or replacement costs.
Costs related to equipment breakdown are not covered under your commercial property policy (it only covers equipment loss or damage due to things like fires, storms, or vandalism).
Equipment breakdown coverage, sometimes called boiler and machinery coverage, reimburses you for certain costs associated with the sudden and accidental breakdown of machinery and equipment. It pays to repair or replace the equipment as well as any lost income that you might experience during the downtime.
What Does Liability Insurance Cover?
Liability insurance protects your business when you are considered to be negligent or blamed for causing harm to an individual or another business. It is your financial lifeline if you are sued for some reason.
Commercial general liability (CGL) insurance provides broad protection for third-party bodily injury and property damage claims. If you operate a tasting room and a guest is burned by coffee that is too hot, or spoiled milk in a hot cappuccino drink causes an illness, your general liability policy pays for direct costs (medical bills, etc.) as well as attorney fees, court costs, settlements, and judgments if you are sued.
General liability insurance also provides coverage for product liability, advertising liability, slander, and libel claims against your business.
Get Protection for When Food Goes Bad
Coffee roasters need special coverage for product losses due to contamination or spoilage. Contamination and spoilage coverage pays for certain losses if coffee beans, packaged coffee, milk, or any other food or ingredients are spoiled or contaminated due to refrigeration breakdown, utility interruption, or some other type of foreign substance contamination.
If your local board of health or another agency forces you to close because of food contamination, your contamination and spoilage insurance may cover you for lost income during the shutdown period, as well as costs related to cleaning contaminated equipment and disposing of and replacing spoiled food.
Other Coffee Shop Insurance to Consider
Aside from major property and liability risks, coffee roasters are likely to need several other insurance policies to protect them from financial harm and unexpected events. Talk to your independent insurance agent about your need for the following:
- Commercial auto insurance protects any vehicles owned by your coffee shop. If you deliver orders to your wholesale customers using business-owned vans or trucks, this coverage is essential to protecting your assets if one of your drivers causes an accident.
- Crime coverage protects your coffee shop if an employee or a group of employees engage in theft, forgery, or fraud that damages your business. It also offers coverage in cases of shoplifting and vandalism.
- Workers’ compensation insurance is required for any business that has employees. It protects your workers from the costs of work-related injuries and illnesses. This coverage pays for medical bills and lost wages for employees who sustain cuts, burns, slip-and-fall injuries, repetitive motion injuries, or any other injuries or illnesses related to their work.
- Cyber liability insurance protects your coffee shop if you are the victim of a cyber breach. If your computer network or website is hacked and confidential customer or vendor information is exposed, the damage to your reputation and bottom line can be insurmountable.
- Employment practices liability coverage protects you if a current or former employee sues you for discriminatory employment practices.
How Much Does Coffee Roasters Insurance Cost?
The cost of coffee roasters insurance depends on the policies you choose, the unique risks you face, the value of your inventory and equipment, and other factors like your location, number of employees, and the size of your establishment.
Whether your business is strictly a roasting operation that sells packaged coffees, or you also operate a tasting room or café, will greatly affect the coverage that you need and what it will cost.
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Independent insurance agents simplify the search process for finding the right coffee roasters insurance. They’ll walk you through some handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.