A coffee shop is one of the most favoured businesses to start, especially in the United States. They are easy to customise to appeal to specific local customers, they have relatively low overhead, and they need very little space and few supplies to be run successfully.

However, a cafe is still a business and with it come the business costs that every owner must account for. This includes not only permit and equipment fees, but also ubiquitous costs like insurance premiums, for both the building itself and the employees that the owner hires.

Average insurance

For average insurance on the coffee shop location itself, owners can expect to pay around £17 daily for both insurance and utilities including power, water and sewage. This type of insurance usually relates to general liability, and only covers the company if receives an injury on the property or if the business is somehow targeted in a lawsuit involving damage or personal injury. For insurance alone, these costs may be only around £84 per month, at the time of publication, but can cost much more.


Like most insurance options, tailor insurance for a coffee shop to an owner's specific requirements. All policies include replacement costs for property, injury and property damage coverage, and coverage for perils like fire, bad debts, theft and valuable documents.

However, owners can also choose to add in coverage for sewer damage, spoiled food, shipments and property belonging to customers. These additions will all raise the cost of insurance significantly, depending on the choices that owners make.


Coffee shop insurance can also vary according to the type of shop.

A true cafe in a building will cost much more to insure than a coffee stand, which has much lower associated costs.

Likewise, a movable coffee cart may need relatively little liability insurance. Customers spend minimal time getting their coffee and the potential for risk, or damage, wear and tear and injury is reduced. Owners can lower their costs by setting their sights on one of these smaller structures rather than planning for a full-sized cafe.

Health insurance

If the business owner wants to hire employees full-time with reliable incentives, then health insurance is another common cost for the coffee shop. On average, health insurance can cost as much as £19,500 per year for the owner. Owners pay only a percentage of total health care insurance premiums, such as 75 per cent of the total amount.