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Cafes insurance
Café insurance NZ
Café insurance is a specific type of business insurance designed for cafes. Just like how you might insure your car or house, café insurance protects cafes from financial loss due to unexpected events, such as fires, theft, or injuries to customers.
Why is café insurance important?
Owning a café involves a lot of responsibilities, from serving customers to managing inventory. With this responsibility comes risks: a customer could slip and fall, a fire could damage your property, or a staff member could accidentally injure themselves. Café insurance is important because it provides financial protection against these unexpected events. Without it, the cost of these events could be so high that it might force the business to close.
In New Zealand, the average cost of cafe insurance typically ranges between $120 – $240 per month.
It’s crucial to have cafe coverage if your business:
- Serves food and drinks
- Employs multiple staff members
- Owns valuable equipment
- Entertains customer foot traffic
What covers are typically included in cafe insurance?
Public Liability
This policy covers common cafe business risks including bodily injuries, customer property damage, and advertising injuries. It’s required for most commercial leases.
Best For
- Business Accident Coverage
- Third-party Damages
- Legal Cost Protection
Statutory Liability
This cover is a type of protection that helps cafes cover costs if they accidentally break certain laws or regulations.
Best For
- Unintentional breaches protection
- Legal costs
- Fines and penalties
Business Contents Insurance
Business contents insurance in NZ is for protecting all the important stuff inside a cafe. If there’s a problem or accident, the insurance can help with the expenses.
Best For
- Accidents
- Floods
- Fires
Stock Insurance
Stock insurance in NZ is a type of coverage that helps protect cafes from the loss or damage to the items they sell.
Best For
- Mishaps
- Natural Disasters
- Fires
Employers Liability
This insurance helps protect cafe businesses from financial losses if an employee suffers injuries or illnesses at work.
Best For
- Workplace injuries
- Legal expenses
- Compensation payments
Employment Disputes
This insurance in NZ covers cafes legal costs and other expenses arising from disagreements between employees and their employers.
Best For
- Mediation costs
- Legal expenses
- Settlement fees
Building Insurance
Building insurance in NZ is a type of coverage that helps pay for repairs or rebuilding if your building or commercial property gets damaged.
Best For
- Accidents
- Natural disasters
- Fires
Business Interruption Insurance
Helps protect cafes when they face unexpected events, like natural disasters or fires, which lead to temporary shutdowns or disruptions in their operations. It covers loss of income and additional expenses incurred during the interruption period.
Best For
- Income loss
- Extra expenses
- Temporary shutdown
How much does cafes insurance cost?
Café insurance premiums are calculated on several different factors including:
- Types of cover
- Turnover
- Location
- Claims History
Cafes insurance in NZ typically costs between $120 to $240 per month
Who needs cafes insurance?
Any business that operates as a café or similar establishment in NZ should consider café insurance. This includes:
- Traditional cafes.
- Coffee shops.
- Diners.
- Bistros.
- Any establishment that primarily serves food and beverages to customers.
No, cafe insurance isn’t legally mandatory in NZ. However, it’s highly recommended. Without it, cafes risk significant financial loss from unexpected events. Plus, certain contracts or lease agreements might require businesses to have some form of insurance.
Absolutely. While there are standard policies, cafe insurance can be tailored to meet the unique requirements of each cafe. Whether you have specialty equipment, unique events, or specific risks, a broker like Gerrards can help customize a policy that’s right for you.
How do I get proof of cafe insurance
You can usually get proof of café insurance same day when you purchase insurance through Gerrards.
Acquiring a café insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or lease.
To obtain insurance coverage promptly, contact one of our café insurance brokers. We may require you to provide some fundamental details about your business, such as:
- The name of your business
- The total number of employees
- Predicted annual income
- Years of experience in the industry
What does cafe insurance not cover?
Normal Wear and Tear
Regular deterioration of equipment or the cafe’s structure over time isn’t covered.
Intentional Acts
If damage or injury is caused intentionally by the cafe owner or employees, it’s not covered.
Acts of War or Terrorism
Most policies exclude damages caused by war or terrorist acts.
Other common questions about cafes insurance
Premiums can often be lowered by implementing safety measures, bundling policies, or choosing a higher deductible. Regularly reviewing your policy and engaging Gerrards to shop around on your behalf can help
Answer: Yes, many cafe insurance policies can include coverage for outdoor areas. However, it’s essential to clarify this with your insurance broker to ensure these areas are protected.
Yes. Even if you’re leasing, you still have contents, equipment, and potential liabilities to consider. Plus, many lease agreements require tenants to have some form of insurance.
Employee theft can be covered under a cafe insurance policy, but it’s often an optional addition. If this is a concern, make sure to discuss it with your broker to include it in your policy.
