Coffee Roaster Business Insurance

Best Insurance for a Coffee Roaster Business

General liability insurance is — generally speaking — one of the most important insurance policies for coffee roaster businesses.

Some of the risks general liability insurance covers are:

• Bodily injury
• Property damage
• Medical payments
• Legal defense and judgment
• Personal and advertising injury

There are a number of additional insurance policies for your coffee roaster business to consider in addition to general liability. These include:

• Commercial property insurance
• Product liability insurance
• Commercial auto insurance
• Workers’ compensation insurance

When obtaining insurance for your coffee roaster business, it is crucial to be aware of the differences between the two primary groups of providers:

• Traditional brick-and-mortar insurers — Includes household names in the insurance industry, such as Nationwide and The Hartford, which have several decades worth of experience.
• Online insurers — Includes more modern additions to the industry, such as Tivly and Next. Despite their relative youth in the industry, this category is becoming increasingly popular as its lower overheads permit it to offer high-quality policies more affordably.

Cost of General Liability Insurance

The average coffee roaster 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 coffee roaster 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.

Find the Best Rate

Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Coffee Roaster Business

Example 1: While visiting your roastery, a child suddenly reaches into the cooling area. They suffer bad burns on their hand and require extensive medical treatment. General liability insurance would likely cover the incident.

Example 2: A delivery driver trips over some empty coffee sacks while dropping off more green beans, and they fracture their elbow in the fall. General liability insurance would probably cover any claim or lawsuit they filed over the incident.

Example 3: During an interview, a profile roaster makes false claims about a competitor that are eventually published. The competitor files a defamation lawsuit, which would likely be covered by general liability insurance.

Other Types of Coverage Coffee Roaster 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:

Commercial Property Insurance

Commercial property insurance is used to insure the physical assets that businesses own. This can include buildings, equipment, supplies, inventory, and other assets.

Coffee roasters often have substantial build-outs, for most commercial roasters require special gas, electric, and exhaust lines. Additionally, roasters and packaging equipment cost a fair amount. Make sure the commercial property insurance you select provides enough coverage for your business’s build-out, roaster, and other equipment.

This coverage can be purchased within a business owner’s policy (BOP).

Product Liability Insurance

Product liability insurance shields businesses from product-related risks. For example, this insurance may cover claims arising from injuries or property damage caused by a business’s products.

Lots of green coffee beans sometimes contain debris, which makes this an especially important coverage for coffee roasters. Should a chicken bone, bit of tire, ora small stone end up in packaged coffee, it could destroy an expensive commercial grinder or fracture a person’s tooth (if the beans are used for chocolate-covered coffee beans). Product liability insurance would likely cover any such incident.

This insurance is available by itself or as part of a package policy.

Commercial Auto Insurance

If your coffee roastery uses a business-owned vehicle to make deliveries, commercial auto insurance is needed. Businesses that have commercial vehicles are required to insure them with this coverage.

Commercial auto insurance is available by itself or as part of a package policy. 

Workers’ Compensation Insurance

If your business has employees, it needs to carry workers’ compensation insurance. This insurance covers job-related illnesses and injuries, and most states require employers to carry it.

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 coffee roaster 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.