When you run your own café business, you’re no stranger to the fast-paced and sometimes hectic environment of the hospitality scene. There’s always an order up, stock to re-order and customers to chat to. 

Amongst all the other business-side of things you need to look after to keep your café business going, sorting out your business insurance should be on your radar no matter how big or small your business is. 

The reality is, no two cafes are the same, each has their own types of insurance risks. So when it comes to understanding your business insurance, spend some time looking at the different types of cover available and how they could protect your business. 

Having the right kinds of insurance in place provides peace of mind, knowing that if disaster were to strike, you have a plan in place to protect your business from the unexpected. 

Here are some of the types of business insurance you may need to consider to protect your café business. 

 Public Liability insurance* 

One of the fundamental types of business insurance for cafes is Public Liability insurance. 

Public Liability Insurance, (often referred to as General Liability insurance) protects you and your café business against such claims, by providing compensation for property damage, and personal injury or death in circumstances that are not covered by the Accident Compensation Commission (ACC). It also covers legal defence costs you incur as a result of defending yourself. 

The cost of having to defend a claim and pay compensation if required could be enough to send you out of business, not only damaging your finances but your reputation too.  

Product Liability insurance* 

When you’re making food and drinks every day in your café, the last thing you want to face is a case of food poisoning. It doesn’t take much for it to happen and the repercussions can be devastating to your café and its reputation.  

Product Liability cover typically forms part of a Public Liability insurance policy. It provides protection against claims of injury by a third-party (not covered by the ACC) caused by a product you have supplied them, for example, food or beverage products your café sells. Product Liability insurance will cover the costs of damages awarded and the costs associated with investigating and defending the claim made against your business. 

Take the time to check the definition of what a ‘product’ is within your insurance policy wording. It generally refers to anything that has been manufactured, constructed, erected, assembled, installed, grown, extracted, produced or processed, treated, altered, modified, repaired, serviced, bottled, labelled, handled, sold, supplied, re-supplied imported or exported by you or on your behalf. 

Business Insurance* 

A lot goes into creating your café, like sourcing the best beans, finding the freshest produce and creating an ambience that keeps your customers coming back for more. It’s all those ingredients that help make your café a success, and that’s where business insurance plays a vital role in protecting your café business for the long haul.  

There are a variety of different types of business insurance options, intended to protect your business assets from unwanted incidents. Just think of the hassle a broken down fridge or piece of kitchen equipment could have on your daily café operations, something you could do without.  

Business Insurance is designed to safeguard your contents, stock and other assets against unexpected events, like fire, storm, theft and accidental damage. 

Here are a few of the different types of business insurance options to keep in mind when protecting your café business: 

Building cover*: Covers the cost of repairing or reconstructing buildings your business owns as a result of fire and other perils. Includes protection for things like fixed signs and lettering, tanks, poles, power lines and their supports, walls, gates, fences and landscaping 

Optional cover is also available for natural disasters, including earthquake^ 

Contents*: Cover for loss of or damage to items such as business equipment, stock, plant and machinery, 

records, fixtures and fittings and furniture belonging to you at the insured location. 

Equipment Breakdown*: Covers your business against loss caused by accidental and unforeseen damage, breakdown or loss 

of electronic equipment & machinery which can include computers, printers, refrigerators and air 

conditioners, subject to policy sub-limits.  

Business Interruption**: Business Interruption insurance provides cover for loss of income and the increased expenses of running your café or coffee shop, when you cannot operate normally due to damage caused by an insurable event. 

**It is important to note that this kind of cover is only available if you insure your Building or Contents. 

Glass*: covers both external and internal glass that is accidentally damaged or broken through theft or vandalism. It covers windows, mirrors, porcelain and illuminated signs.  

Money cover*: can protect your hard-earned dollars, if it is lost, stolen or damaged whilst on your premises. It is also protected whilst in transit to or from your business or when held in your personal care. 

Employers Liability*: Employers Liability insurance protects you against settlements or damages, including defence costs, as a result of an employee suffering bodily injury arising out of his or her employment where the Accident Compensation Commission (ACC) does not provide cover. 

Get your café covered today 

Every café is unique, each with its own insurance needs and risks. Public Liability New Zealand allows you to access to multiple quotes to compare from some of New Zealand’s leading insurers, so you can choose the right cover to protect your café business.  

Hassle-free insurance is only a few mouse clicks away with our online platform, ready to help you get covered quicker than making a cuppa! 

*As with any insurance, cover is subject to the terms, conditions and exclusions contained in your policy document.  The information contained on this webpage is general only and should not be relied upon as advice 

^Cover for natural disasters is subject to the location of your business and is not available to all postcode areas. 

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