Last Updated: February 22, 2024, 9:47 am by TRUiC Team

Lemonade Stand Business Insurance

Getting insurance for your lemonade stand is essential.

Lemonade stands need to be protected against things like claims of product liability, trademark infringement, and contractual breach.

For example, someone could claim that your lemonade stand logo was too similar to theirs and sue you for trademark infringement.

We’ll help you find the most personalized and affordable coverage for your unique business. 

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Lemonade Stand

General liability insurance is — generally speaking — one of the most important insurance policies for lemonade stands. 

Some of the risks general liability insurance covers are:

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

Some additional insurance policies are worth looking into for your lemonade stand, including:

  • Commercial property insurance — covers your inventory, lemonade-making equipment, and the commercial space you operate out of
  • Workers’ compensation insurance — any employees you have may get sick or injured on the job, and this would pay for their medical bills, time off, etc. 
  • Commercial umbrella insurance  — covers claims that exceed your other policies’ limits

Finding an insurance provider that suits your lemonade stand can be a challenge. That’s why we recommend narrowing down your choices to the primary two types of providers:

  • Traditional brick-and-mortar insurers
  • Online insurers

Generally, online insurers such as Tivly and Next are what we recommend for small companies, as they typically offer quality personalized coverage at more affordable rates than traditional insurers like Nationwide.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, lemonade stands in America spend between $300 - $800 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a lemonade stand 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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

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

Common Situations That General Liability Insurance May Cover for a Lemonade Stand

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Example 1: While purchasing a lemonade at your mobile stand, a customer trips over your stand and sustains injuries. General liability insurance could cover his/her medical bills.

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Example 2: You want to sell your lemonade at a mall kiosk. The mall owner requires evidence of liability insurance as part of the lease agreement. A general liability policy should help fulfill this requirement.

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Example 3: While moving your stand, the wheel falls off and causes a large gash in the paved parking lot. General liability insurance should cover the repair costs.

Other Types of Coverage Lemonade Stands 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:

Home-Based Business Insurance

To save on overhead expenses, many small businesses operate out of their home. However, most homeowners policies exclude business property and losses. This can leave businesses uninsured or under-insured when a property damage loss occurs. Business owners can check with their homeowners insurance carrier to determine if an extension of coverage for an additional premium is available.

If not, you can purchase home-based business insurance as part of a business owner's policy (BOP).

Product Liability Insurance

Without product liability insurance covers claims that arise from the manufacturing, distribution, and sale of your products. Customers who claim negligence on your part, regardless of merit, can sue you in a court of law. This coverage provides legal representation and pays damages awarded by the court.

Coverage is generally sold as part of a business owner's policy (BOP), which you can tailor to the unique needs of your business.

Business Interruption Insurance

Unfortunately, businesses often sustain commercial property losses that take months to recover from. To safeguard against financial devastation, many entrepreneurs choose to purchase business interruption insurance. This policy can help cover the costs of setting up at a temporary location, help with extra expense costs, and supplement lost income during recovery time.

This insurance is generally offered as part of a business owners’ policy (BOP) package.

Commercial Auto Insurance

While personal auto policies exclude vehicles used for business purposes, the state mandates that a policy must be in place. To meet the state-mandated requirements, your business should purchase commercial auto insurance. This policy pays to repair or replace damaged owned autos, liability claims, lost equipment, and medical expenses.

Commercial auto insurance is generally purchased as a standalone policy. Some carriers can also write it as part of a business owner’s policy (BOP).

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 lemonade stand:

  • 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.

Lemonade Stand 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. Because your lemonade stand will face potential risks that could cost a lot of money to resolve, it will need business insurance beforehand to protect it financially.

Another important consideration is that your lemonade stand could be legally required to purchase some forms of business insurance.

Not necessarily. Certain exceptions may be written directly into your lemonade stand 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.