Cafe Business Insurance

Cafe Business Insurance
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When I think about a typical small business, one of the first business types I think of are cafes.

I don’t know why that is. Maybe it’s simply because I love a good flat white?

Running a small business such as a cafe can be very rewarding both personally and (hopefully) financially, but there are also a number of risks to keep in mind.

Many of the typical risks faced by cafes can be managed through business insurance.

In this guide we’ll take a look at the different types of insurance available to cafe businesses and why they are so important.

Insurance Types

We will go into more detail about each of these different insurance types shortly, but to start with here is a list of the common forms of cover used by cafe owners:

  • Public Liability
  • General Property & Contents
  • Theft
  • Glass
  • Money
  • Machinery Breakdown
  • Deterioration of Stock
  • Business Interruption

As an owner of a cafe you may also want to consider personal forms of insurance such as income protection and life insurance, but for this guide we’ll stick to the business insurance side.

Cafe Risks

Rather than looking at each different type of insurance available, we’ll flip that around and look at the different risks faced by cafe owners.

The major risk that most people will think of first is simply whether or not their cafe can be profitable enough to survive and provide a sustainable income.

Unfortunately this is one risk that insurance cannot cover, and as any cafe owner will tell you, it all comes down to a LOT of hard work!

But for most other common cafe risks there are effective insurance solutions available.

Let’s take a look at some of these insurable risks.

RISK 1: Slip and fall injuries
SOLUTION: Public Liability Insurance
DETAILS: This is a big one for any cafe. Public liability insurance can cover the costs if a customer tries to sue you

RISK 2: Scalding from hot drinks
SOLUTION: Public Liability Insurance
DETAILS: This might not be a huge concern for most cafe owners but there have been some big cases involving hot drink burns

RISK 3: Food poisoning
SOLUTION: Public Liability Insurance
DETAILS: If any of your clients suffer food poisoning your insurance can cover the costs if they take action against you

RISK 4: Theft of contents stock or money
SOLUTION: Theft Money Contents & General Property Cover
DETAILS: A combination of these cover types can protect your contents stock and cash in the event of theft

RISK 5: Damage or loss due to fire / storm etc
SOLUTION: Contents & General Property Cover
DETAILS: A combination of these cover types can protect your contents and stock in the event of fire / storm / lightning etc

RISK 6: Food spoilage
SOLUTION: Deterioration of Stock
DETAILS: If you lose stock due a fridge or freezer failing this insurance can cover the cost of replacement

RISK 7: Financial losses due to employee dishonesty
SOLUTION: Employee Dishonesty Insurance
DETAILS: Can cover losses which have been caused due to dishonest actions by your employees

RISK 8: Unable to operate due to external interruptions
SOLUTION: Business Interruption Insurance
DETAILS: If your cafe is unable to operate due to external interruptions this cover can protect your revenue for a period of time

RISK 9: Personal injury suffered by staff
SOLUTION: Workers Compensation
DETAILS: This cover is separate to a normal business insurance pack and is mandatory as set by the each state government

It’s important to note that the information detailed in the table above is generic and does not relate to any one specific business insurance policy.

If you are considering taking out an insurance policy for your cafe, you need to run through the policy options and coverage which are specific to that policy.


I totally understand that money is tight when starting any new business, and it’s very easy to feel that a few spare dollars would be better spend on marketing or nicer fit-out rather than insurance.

But this is a trap which cafe owners need to be careful not to fall into.

We have assisted plenty of cafes with their insurance needs, and unfortunately (despite our best advice) many of them choose to take out the basics rather than insuring their business properly.

Many cafe owners only take out public liability insurance to start with, and decide that they’ll look at other forms of insurance once the cafe starts making more money and become successful.

Well it’s great that they’re at least taking out some cover, and there’s no doubt that public liability is the most important of all the covers, but they could be costing themselves any chance of being successful.

What happens if someone breaks in and steals your equipment? What if your fittings and furniture are all lost due to a fire or storm? What if you lose all of your stock due to an overnight fridge failure?

These events can put a huge dent in your business and put you right back to the start again, or worse in extreme cases.

It is certainly better to insure your cafe business properly the first time, rather than under-insuring and simply hoping for the best.

Getting Quotes & Coverage

There are three main ways in which you can obtain quotes and take out cover for your cafe.

The traditional option is to meet with an insurance broker and run through your needs with them. The broker will then provide you with recommendations and quotes, and assist you with putting the policies in place.

Option two is the do-it-yourself approach which involves taking out your business insurance online without any assistance.

This option can sometimes save you money, but you need to be confident in your abilities to read and understand the ins and outs of each policy you are looking at.

Option three is the way we do things here, and we believe it offers the best of both worlds.

Simply click on the quote button below (or click here) and complete your details. The quote form will ask some general business questions as well as questions which are specific to cafes.

Once submitted, an insurance adviser from our network will review your information and provide quotes on your cafe business insurance.

They will also assist with getting your cover in place if you choose to proceed with the quotes.

If you’d rather not fill out forms online, you can always call our office on 1300 542 245 and speak with one of our experts.

For more information about business insurance for cafes please contact us via phone or online.