Last Updated: May 31, 2024, 7:05 am by TRUiC Team

Tea Shop Business Insurance

Getting insurance for your tea shop is essential.

This is because tea shop owners need to protect themselves against a variety of different risks, such as those that relate to property damage, employee injuries, and vendor-related disputes.

For example, a customer may accidentally slip and injure themselves while entering your tea shop, or one of your tea suppliers may claim that you didn’t pay them on time.

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 Tea Shop Business

General liability insurance is — generally speaking — one of the most important insurance policies for tea shops.

Some of the risks general liability insurance covers are:

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

Having said that, you should note that a general liability policy is not always enough to “fully” cover every tea shop.

This means that — depending on your risks — it might be a good idea to consider purchasing the following types of coverage policies as well: 

  • Workers’ compensation coverage (covers you against claims and disputes that relate to your employees)
  • Business income coverage (covers part of your lost income if you need to close down)
  • Commercial property coverage (covers the cost of replacing damaged or stolen property)

You will also need to find the right type of business insurer for your unique needs. As of 2024, there are two different options available:

  • Traditional brick and mortar insurers — Popular examples include Nationwide, CNA, and Hiscox. 
  • Online insurers — Popular examples include Tivly and Next Insurance. 

All in all, we recommend going for the second option as a small or new business owner.

This is because you will want to stay as price-efficient as possible when starting out, and online insurers offer significantly more affordable rates due to the fact that they have much lower operating costs.

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Cost of General Liability Insurance

The average tea shop 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 tea shop 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.

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 low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Tea Shop Business

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Example 1: A customer walking into the shop trips on a cord that’s been misplaced by an employee. The customer suffers a head injury. General liability insurance may help cover the costs associated with the customer’s medical bills and other losses, including expenses related to a settlement filed against the company. It would also provide an attorney to defend against any lawsuit.

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Example 2: The company’s marketing campaign uses a phrase that a competitor has copyrighted. This creates a claim from the competitor of copyright infringement. General liability insurance may help cover the settlement or lawsuit associated with the competitor’s claim.

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Example 3: The tea shop leases space within a retail center that requires tenants to maintain a general liability insurance policy. Having a policy ensures that the company meets the requirements of the property owner.

Other Types of Coverage Tea Shop 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

Some tea shops own their own buildings. Protecting the value of the property as well as any contents and equipment within it is vital to the operation of your company. In a tea shop, a fire, storm, or vandalism event could cause damage. Commercial property insurance helps cover all of the equipment, inventory, and the building itself in such an event. This type of business insurance is typically a part of a business owner’s policy (BOP).

Workers' Compensation Insurance

Tea shops tend to employ several people. Depending on the number of employees and state law, it may be a requirement to maintain workers’ compensation insurance. Even if not required, it can help cover any type of worker injury or illness that occurs on the job. In tea shops, burns could be a key concern for employees. Even if the tea shop just sells products without any preparation, there is still the risk of a fall or injury, making this business insurance essential.

Product Liability Insurance

Some tea shops blend their own varieties of tea. Others sell products from their own manufacturing or third-parties. If a business sells products to the general public, especially items they’ve created themselves, there is the risk of a product failure claim. A consumer could become ill or suffer burns using the equipment and file a claim against your business. Product liability insurance helps to cover these types of losses.

Data Breach Insurance

Tea shops gather the personal data of their customers to process payments. If there is an instance in which a thief hacks their computer files, it could expose the customers’ information, creating a data breach concern. Typically, a standard general liability insurance policy will not cover this type of loss, but a data breach insurance policy may help cover claims, notifications to the customers, as well as ongoing credit monitoring services.

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 tea shop 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.

Tea Shop 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, you do. Getting business insurance can — depending on your state — be a legal requirement if you end up hiring employees.

Even if this is not the case, you will want to get insured before you start operating in order to ensure that you are protected before you begin interacting with customers.

Not necessarily. Certain exceptions may be written directly into your tea shop 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.