Café and coffee shop insurance

Most cafés carry a commercial package policy that we adjust for size, equipment and what you serve.

• Equipment breakdown. For a coffee shop this is often the coverage owners value most. It pays for sudden mechanical or electrical failure of espresso machines, grinders, brewers, water filtration, refrigeration and ovens. Read how cover for a failed espresso machine or grinder works.
• General liability. Responds to customer injuries, including burns from a dropped cup, a trip over a laptop cord or a fall on a wet entrance mat, and to illness linked to food or milk. See liability cover for customer injuries.
• Property and contents. Covers machines, furniture, inventory, signage and leasehold improvements after fire, water damage or theft.
• Business interruption. Pays continuing costs and lost profit while you are closed after a covered loss. When paired with equipment breakdown, it can cover the days without your main machine. Learn about income protection while you are closed.
• Spoilage. Milk, alternative milks and pastry cases are lost quickly when refrigeration fails.
• Crime and cyber. Cash, tip jars and card terminals all bring theft and data exposures.

One machine, most of the revenue

A commercial espresso machine is often the single most valuable item in the shop, and nearly every drink depends on it. A failed boiler element or pump can take it offline, and specialist technicians or parts may not be available the same day.

Example: A two-group espresso machine at a downtown Ottawa coffee shop loses its heating element on a Monday morning. The technician needs a part shipped in, and the café can only sell drip coffee and pastries for three days. Equipment breakdown pays for the part and labour, and the business interruption extension covers the drop in sales after the waiting period.

Hot liquids at a busy counter

Steamed milk and fresh coffee are served at temperatures that can burn skin. Most cafés see some spills each week. Lids, sleeves, a clear handoff area and staff who call out hot drinks all help reduce claims.

Long stays and laptops

Customers who work from your café for hours raise the chance of a trip over a power cord, a spill on a laptop or a dispute over a stolen bag. Keep walkways clear and power outlets placed with cords in mind.

Food on the menu

Many coffee shops now serve sandwiches, bowls and baked goods. Each added item brings allergen and contamination risk, and cooking with open flame or a fryer changes how the insurer rates the shop. If pastries are made on site, read about bakery production risks as well.

Roasting on site

A roaster is a heat source with chaff and smoke to manage. Insurers will ask about ventilation, chaff collection, cleaning schedules and whether anyone is present while it runs.

Water lines and plumbed equipment

Espresso machines, brewers, ice makers and dishwashers are all plumbed in, often under a counter where a slow leak can go unnoticed. A failed fitting overnight can soak flooring, cabinetry and the unit below you. Property cover usually responds to sudden water damage, and tenant’s legal liability can respond to damage to the landlord’s building. Leak sensors and regular checks of supply lines and filters are cheap insurance of their own.

Sidewalk patios

Patio season adds seating but also tables on a public sidewalk, umbrellas that catch the wind and customers stepping over curbs. Municipal patio permits and some landlords ask for proof of liability coverage, so tell us when the patio opens and we will issue the certificate.

Café type	What tends to matter most
Grab-and-go counter	Equipment breakdown, hot drink burns, high cash and card volume
Sit-down café	Customer falls, laptop and personal property claims, longer hours
Café with full food menu	Product liability, kitchen fire, allergen procedures
Café roaster	Roaster fire, wholesale product liability, larger equipment values
Tea house or bubble tea shop	Hot liquid and choking claims, specialty equipment, spoilage

If your café serves wine or beer in the evening, an AGCO liquor licence brings its own exposure, and we will add liquor liability to the package.

Tell us about your café or coffee shop using the form on this page, including your machines and what food you serve, or call us at (416) 346-6886. One of our hospitality brokers will ask about your operation, then take your application to insurers that suit a café like yours. We explain the differences in plain language, set up the policy you choose and stay with you for patio and landlord certificates, changes, renewals and claims. The quote is free and there is no obligation.