Cat Cafe Business Insurance
Getting insurance for your cat cafe is essential.
To ensure the safety of cat cafes, despite the risky environment in which they operate, insurance is crucial. With insurance, these businesses can be protected against property damage and also receive liability coverage for bodily injury or other forms of personal harm.
For example, an employee may accidentally bump into an aged customer causing her to fall. If the customer takes legal action, it would be good to know you have insurance not only to hire a lawyer but to pay compensation if it comes to that.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Cat Cafe Business
General liability insurance is — generally speaking — one of the most important insurance policies for cat cafes.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance provides coverage for a variety of risks, it may not be sufficient to cover all the risks that your business may face. For instance, some risks may require coverage from specialized policies, such as those that offer:
- Commercial property coverage: This type of insurance will compensate your business for expenses incurred in repairing damage to the premises that house the cat cafe. Damage covered typically includes that caused by fire, vandalism, burglary and theft.
- Commercial auto insurance: An auto insurance policy may offer just basic protection that indemnifies your business for collision-related damage to vehicles or individuals. A comprehensive policy, on the other hand, protects against off-the-road risks, as well as collision risk.
- Business income coverage: This is coverage that reimburses you for loss of income that results from an interruption of business. If, for example, your business has to shut up shop for a while because some adverse event, such as a fire, has occurred the insurer will cover the loss of income sustained.
When acquiring your business coverage, you will generally be able to choose between the following two types of insurers:
- Traditional brick and mortar insurers: These providers generally offer the same classes and types of insurance, such as commercial general liability insurance and auto insurance, that have become standard in the industry. They use brick and mortar offices and usually charge higher premiums due to higher overhead costs.
- Online insurers: Insurtechs often offer lower overhead, reduced premiums, and niche products and services that may not be offered by traditional insurers. For example, insurtechs may offer usage-based insurance, which adjusts premiums based on actual usage.
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Cost of General Liability Insurance
The average cat cafe in America spends between $500-$1,200 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a cat cafe business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Discover the best coverage at the lowest rate in our cheapest business insurance review.
Common Situations That General Liability Insurance May Cover for a Cat Cafe Business
Example 1: A customer comes in and is scratched in the eye while trying to comfort a cat. Even though they signed a waiver, you may be held liable for damages if the cat had an infection that was then transferred over to your customer. General liability insurance will likely cover damages if your business is sued.
Example 2: After a server pours a fresh cup of coffee for a customer, a cat jumps up on the table and spills the hot liquid into their lap. If the spill results in severe burns, you could be found responsible for their injuries. With general liability coverage, you can protect your business in the event of a lawsuit.
Example 3: You've set up a photo booth as a treat for your customers during the holidays. As a group walks into the studio area for their photo, someone trips over a cord for the flash and falls down hard on the floor, breaking their wrist. The customer then sues your business for damages. General liability coverage will likely cover the costs associated with the claim.
Other Types of Coverage Cat Cafe Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require that businesses carry workers’ compensation coverage if they have part-time or full-time employees. This coverage is designed to help cover medical bills and lost wages in the event that an employee is injured or becomes ill while on the job.
Commercial Property Insurance
If you own the building that you operate your cat cafe out of, you’ll likely want to invest in commercial property insurance. This coverage works to protect your building and the contents inside it in the event of a fire, natural disaster, or instance of theft and vandalism.
Data Breach Insurance
Many cat cafes offer customer loyalty programs that work to reward returning customers for their patronage. But if your computer systems are hacked or otherwise compromised, your customer's private information like addresses, phone numbers, and credit card details could be stolen. Data breach insurance can help to protect your business and your customers in the event of a system breach.
Business Interruption Insurance
If you ever have to close your doors for an extended period of time due to an incident like a fire or inclement weather, business interruption coverage is a must. This coverage can help to make up some of the losses associated with closing your doors.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your cat cafe business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Cat Cafe Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes, and there are good reasons why you should take out business insurance. Your fledgling business will be exposed to risk even before its doors are open to the public. Adjustments to the premises, hiring and managing workers, creating operational procedures: these are all activities that involve risk despite their innocuous guise.
In addition, state laws mandate the purchase of commercial auto insurance to cover company vehicles, and workers’ compensation insurance to cover employees.
Not necessarily. Certain exceptions may be written directly into your cat cafe business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.