Custom soda shops have been popular across the western US for years, and today they are becoming increasingly popular throughout the rest of the country.
Custom soda shops are fun and delightful establishments offering customers the ability to choose from a wide array of beverages that typically start with a traditional soda, like Coke or Pepsi, mixed with shots of custom flavorings (blackberry, raspberry, vanilla), candies (gummy worms), and more (whipped cream, coconut).
Custom soda shops also offer a variety of snacks to go with the custom soda beverages, such as cookies, popcorn, macaroons, and more. Other drinks like tea, coffee, and hot chocolate may also be available.
Custom soda shop owners face numerous business risks. Comprehensive soda shop business insurance can help you protect your investment in the business you love. A local independent insurance agent can help you get the custom coverage you need.
Why Do You Need Custom Soda Shop Insurance?
As a custom soda shop owner, you must prepare your business for unexpected events that can damage property, suspend your ability to operate, injure customers or employees, and cause serious financial distress. Consider the following possibilities:
- Soda or snack inventory is contaminated or spoiled and must be destroyed.
- Vital equipment or machinery unexpectedly breaks down (refrigerators, soda-making equipment,) leading to property damage, loss of inventory or product, and extended downtime.
- A customer, vendor, or delivery person slips, trips, or falls on your premises.
- Guests on your premises damage equipment or other business property.
- Weather events, fire, theft, or vandalism damage or destroy your building and its contents.
Custom Soda Shop Property Insurance
You’ll need numerous custom soda shop insurance policies to properly cover your business and protect your livelihood. First, you need to insure your physical assets with coverage that helps you pay to repair or replace damaged property after some unforeseen event.
- Commercial property insurance protects your building and contents in the event of damage due to fire, weather events, theft, vandalism, and other causes of loss. You need coverage for equipment and machinery, soda inventory, food and other ingredients, restaurant furniture, fixtures, computers, and any other business property on your premises.
Your business property policy should also include business interruption coverage, which pays for ongoing expenses, lost income, and relocation costs if you cannot operate or you must relocate due to a covered loss.
Equipment breakdown coverage is also important for your custom soda shop. The machinery you use to make sodas and mix custom drinks is expensive. Your freezers and refrigerators are essential to keeping inventory fresh and staying open for business. Broken or malfunctioning equipment can take months to repair or replace.
Equipment breakdown coverage pays for costs associated with sudden and accidental breakdown of machinery and equipment. It covers the costs to repair or replace the equipment and any other property that is damaged by the broken equipment, and it reimburses you for related business interruption costs.
Custom Soda Shop Liability Insurance
Small businesses are always a target for negligence claims and lawsuits. If you were sued for some reason, how would you pay for an injured party’s medical bills or damaged property? Would you be able to afford the legal fees and court costs required to defend yourself?
Commercial general liability insurance provides broad coverage for third-party bodily injury and property damage claims. If a guest slips and falls on your premises, or one of your beverages causes someone to become ill, your general liability policy can pay for direct costs (medical expenses, etc.) as well as attorney fees, court costs, and any court-ordered settlements or judgments.
A general liability policy also provides coverage for claims related to product liability, advertising liability, slander, and libel.
What Is Contamination and Spoilage Coverage?
Food spoilage and contamination can happen in a variety of ways. Your refrigerator can break down, causing everything inside to become spoiled and ruined. You can unknowingly receive tainted flavorings or a contaminated ingredient from an outside source and serve it to your customers.
Contamination and spoilage coverage pays for certain losses if food products 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.
Keep in mind that your contamination and spoilage insurance does not cover liability claims related to any illnesses or injuries caused by spoiled or contaminated food.
If you are sued after someone becomes ill, the product liability portion of your general liability policy responds and pays for medical expenses, attorney fees, and any financial settlements that you’re required to pay to the injured party.
An independent insurance agent might suggest that you purchase extended product liability protection beyond what is offered in your general liability policy.
Where Else Do You Have Exposures?
There may be several additional risk exposures in your custom soda shop business. Talk to your independent insurance agent about your need for these additional policies or policy endorsements (coverage add-on to a basic policy).
- Commercial auto insurance provides liability insurance if a business-owned vehicle causes an accident.
- Crime coverage protects your business if an employee or a group of employees engage in theft, forgery, or fraud that damages your business.
- Workers’ compensation insurance is required for any business that has employees. It protects your soda shop workers from the costs of work-related injuries and illnesses.
- Product recall coverage helps pay for costs related to removing recalled, damaged, or dangerous products from the marketplace.
- Employment practices liability coverage protects you if a current or former employee sues you for discriminatory employment practices.
- Sign coverage pays for damage to outdoor signs that are not attached to your building that is caused by vandalism, theft, weather, or accidents.
- Utility interruption coverage provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
How Much Does Custom Soda Shop Insurance Cost?
A variety of individual risk factors influence how much you will pay for custom soda shop insurance. These risk factors include the location of your store, the number of employees you have, and the coverage limits and deductibles that you choose.
Some small business owners can get the best rates by purchasing a business owners policy (BOP), which combines commercial liability insurance, commercial property insurance, and business interruption coverage into one affordable and efficient package policy. Other coverage can be added on to complete your comprehensive business insurance program.
Find and Compare Quotes
An independent insurance 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 custom soda shop insurance. They’ll walk you through some handpicked policy options and explain the details and options.
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.
TrustedChoice.com Article | Reviewed by Paul Martin
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