Coverdash earned our top spot for the best small business insurer for coffee shops due to its affordability and coverage. However, we recommend comparing quotes from our other top picks, including The Hartford, Nationwide and Simply Business.
Best Coffee Shop Business Insurance
Updated: July 17, 2025
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Key Takeaways
Coverdash is the best business insurance company for coffee shop firms because it offers the greatest balance of affordability and coverage.
Coverdash offers the cheapest rates for key coverage types like general liability and BOP insurance for coffee shop businesses, based on our analysis of a specific business profile with two employees. Your actual rates may vary based on your business size, location, claims history, and coverage needs.
To shop for business insurance for your coffee shop business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Coffee Shop Businesses
| Coverdash | 94 | 98 | 83 |
| The Hartford | 93 | 94 | 91 |
| Nationwide | 93 | 94 | 91 |
| Simply Business | 90 | 90 | 83 |
| biBERK | 89 | 87 | 91 |
| Progressive Commercial | 87 | 90 | 81 |
| NEXT Insurance | 87 | 80 | 94 |
| Hiscox | 87 | 88 | 87 |
| Chubb | 86 | 83 | 87 |
| Thimble | 86 | 88 | 81 |
*All scores were based on MoneyGeek's analysis of a coffee-shop business with two employees across professional liability, general liability, workers' comp and BOP policies. Actual rates and availability may vary by location, business specifics, and insurer underwriting criteria.
1. Coverdash
pros
Cheapest BOP and general liability coverage
Simple online application
Strong affordability across policies
cons
Limited customer service availability
Less recognizable brand in industry
COMPANY HIGHLIGHTS
Coverdash ranks as the most affordable insurer for coffee shop businesses across general liability and BOP coverage. Our analysis shows it offers average savings of up to $245 per year compared to other major providers. Coverdash focuses on fast digital quoting and budget-friendly bundles tailored to small brick-and-mortar retailers. It doesn't have the name recognition or support of legacy carriers, but it works well for budget-conscious owners who value speed and convenience.
2. The Hartford
pros
Best pricing for professional liability
Strong financial stability (A+ AM Best)
Trusted by established retailers
cons
Fewer online features than newer platforms
COMPANY HIGHLIGHTS
The Hartford is a trusted name for coffee shop owners seeking solid professional liability coverage and long-term financial reliability. It ranks first in our study for the lowest professional liability rates and performs well across all coverage categories. Backed by an A+ rating from AM Best, The Hartford is ideal for established or growing shops that want dependable protection from legal risks and operational disruptions.
3. Nationwide
pros
Competitive general liability and BOP rates
Good customer service scores
Strong brand trust
cons
Slower claims process reported in reviews
COMPANY HIGHLIGHTS
Nationwide offers competitive pricing for general liability and BOP coverage, making it a strong choice for coffee shop businesses. It tied with The Hartford in affordability scores and holds a high customer satisfaction rating. Its wide network and strong underwriting history appeal to business owners who want both digital flexibility and the option of agent-based service. While some users note longer claims resolution times, Nationwide remains a reliable option with balanced pricing and support.
Cheapest Business Insurance for Coffee Shop Firms
Based on our study of business insurance pricing, Coverdash offers the cheapest overall commercial insurance for coffee shop businesses across most policy types. However, this applies only to coffee shop businesses with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Coffee Shop Businesses
With an average monthly rate of $57, Coverdash offers the lowest-cost general liability insurance for coffee shop businesses. Even so, consider getting quotes from the next-most-affordable insurers: Nationwide and The Hartford.
All rates shown are based on MoneyGeek's analysis of a standardized business profile and should be used for comparison purposes only.
| Coverdash | $57 | $685 |
| Nationwide | $69 | $828 |
| The Hartford | $81 | $970 |
| Simply Business | $84 | $1,013 |
| Progressive Commercial | $87 | $1,050 |
| Thimble | $93 | $1,121 |
| Hiscox | $96 | $1,149 |
| biBERK | $103 | $1,230 |
| Chubb | $108 | $1,293 |
| NEXT Insurance | $137 | $1,646 |
Cheapest Workers' Comp Insurance for Coffee Shop Businesses
For coffee shop businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $20 per month or $241 yearly. However, you may find more affordable rates with Simply Business, Progressive Commercial, Hiscox and NEXT.
| Thimble | $20 | $241 |
| Hiscox | $22 | $269 |
| Progressive Commercial | $22 | $259 |
| Simply Business | $22 | $268 |
| Coverdash | $23 | $275 |
| NEXT Insurance | $23 | $280 |
| The Hartford | $23 | $273 |
| biBERK | $24 | $283 |
| Nationwide | $25 | $302 |
| Chubb | $27 | $324 |
Cheapest Professional Liability Insurance for Coffee Shop Businesses
The Hartford offers the most affordable professional liability insurance options for coffee shop businesses, with low average monthly rates of $55. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Hiscox.
| The Hartford | $55 | $658 |
| NEXT Insurance | $57 | $681 |
| Progressive Commercial | $58 | $695 |
| Hiscox | $60 | $717 |
| Simply Business | $60 | $723 |
| Coverdash | $61 | $736 |
| Thimble | $61 | $731 |
| biBERK | $63 | $756 |
| Nationwide | $66 | $788 |
| Chubb | $71 | $847 |
Cheapest BOP Insurance for Coffee Shop Businesses
Coverdash provides the most affordable business owner's policy (BOP) coverage for coffee shop businesses, with an average yearly cost of $997 for bundled general liability and property protection. That’s a savings of roughly $245 annually compared to The Hartford, the second most affordable option.
| Coverdash | $83 | $997 |
| The Hartford | $103 | $1,242 |
| Nationwide | $104 | $1,243 |
| Simply Business | $127 | $1,528 |
| Progressive Commercial | $131 | $1,566 |
| biBERK | $133 | $1,601 |
| Hiscox | $143 | $1,715 |
| Thimble | $145 | $1,736 |
| Chubb | $161 | $1,934 |
| NEXT Insurance | $199 | $2,389 |
What Type of Coverage Do You Need for a Coffee Shop Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Requirements vary by state and number of employees.
Many clients or contracts also require businesses to carry general liability insurance before starting work. General liability insurance typically doesn't require a deductible for most claims, covering bodily injury, property damage, and legal defense costs.
A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED COFFEE SHOP BUSINESS COVERAGE
General liability insurance is strongly recommended for coffee shop businesses because it covers common risks like bodily injury, property damage and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. This coverage becomes especially useful for companies offering specialized services or handling large contracts where the risk of disputes is higher.
How to Get the Best Cheap Business Insurance for Your Coffee Shop Business
Here's how to find the best and cheapest business insurance for your coffee shop, using our step-by-step method.
- 1
Decide on coverage needs before buying
Think about what could go wrong in your coffee shop business, talk to other coffee shop owners about their experiences, consult with agents and research the types of business insurance. Understanding risks upfront helps you buy the right coverage without paying for protection you don't need.
- 2
Research costs
Know what you should expect to pay before you start shopping. Look up typical insurance costs for coffee shops your size, then identify which companies offer the lowest rates. This homework gives you negotiating power and helps you spot a good deal.
- 3
Look into company reputations and coverage options
Check out what real customers say about each insurer on sites like Trustpilot and Google, or browse Reddit threads where business owners share their experiences. Look into each company's coverage options since your coffee shop might grow or change.
- 4
Compare multiple quotes through different means
Get quotes from at least three companies, but where you get those quotes affects the price. An independent agent might find you a deal that doesn't show up on a company's website. Online comparison tools are quick, but calling insurers directly sometimes unlocks discounts.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Coffee Shop Business's Liability Risk
Reducing risk helps coffee shop owners minimize claims and keep insurance costs down. We've organized practical risk-reduction strategies by business type to help you handle your specific challenges.
Coffee Business Risk Type | Included Types of Coffee Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Full-service cafés, multi-location chains, roasteries with retail or wholesale operations | Implement food safety protocols (ServSafe certification, temp logging), use burn sleeves and non-spill lids, conduct staff training on hot equipment and commercial appliances, use security cameras and lockable POS drawers, maintain vendor contracts in writing |
Moderately High | Drive-thru coffee stands, mobile coffee trailers, roasting operations without retail | Install bump guards near drive-thru lanes, use double-cup sleeves, check generator/equipment regularly, conduct fire drills, use secure transport protocols for mobile units |
Moderate | Independent storefronts with low staff count, indoor seating, no roasting | Maintain clean and dry floors, display wet floor signs, ensure staff lift safely and use ergonomic equipment, regularly inspect espresso machines, require safety walk-throughs before opening |
Moderately Low | Home-based roasting or online coffee sellers | Keep roasting equipment in ventilated areas, use surge protectors, track shipments and use protective packaging, ensure product labeling meets local food regulations, set up basic cybersecurity tools for ecommerce |
Lowest | Pop-up or event-only vendors | Maintain valid permits, use lightweight and tested equipment, secure equipment to prevent tipping or accidents, coordinate with event hosts for risk sharing and emergency protocols |
Best Insurance for Coffee Shop Business: Bottom Line
Coverdash is the best insurer for coffee shop business insurance, while it also offers the cheapest option overall. We also recommend getting quotes from The Hartford and Nationwide. For the best deal, talk to agents, research providers and pricing, and compare multiple quotes side by side.
Coffee Shop Business Insurance: FAQ
Discover answers to frequently asked questions about business insurance for coffee shops.
Who offers the best coffee shop business insurance overall?
Coverdash offers the best business insurance for coffee shop businesses, with solid customer service and a MoneyGeek score of 94 out of 100. The Hartford closely follows with a score of 93.
Who has the cheapest business insurance for coffee shop businesses?
Here are the cheapest business insurance companies for coffee shop businesses by coverage type:
- Cheapest general liability insurance: Coverdash at $57 per month
- Cheapest workers' comp insurance: Thimble at $20 per month
- Cheapest professional liability insurance: The Hartford at $55 per month
- Cheapest BOP insurance: Coverdash at $83 per month
What business insurance is required for coffee shop organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for coffee shop businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
How much does coffee shop business insurance cost?
Business insurance costs for coffee shops vary depending on your coverage needs, business size, and claims history. Below we've broken down average monthly costs for commonly purchased policies:
- General Liability: $92 per month
- Workers Comp: $23 per month
- Professional Liability: $61 per month
- BOP Insurance: $133 per month
How We Chose the Best Coffee Shop Business Insurance
We selected the best business insurer for coffee-shop companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.