Cafe insurance cover & under insurance know the risks
Cafe insurance is important and most cafe insurance covers at least public liability insurance.
This is because they almost always operate from leased premises, and the landlord therefore requires a tenant to hold public liability insurance as part of the lease.
In addition to public liability, the lease will generally require that glass cover is in place, which covers damage to any plate glass at the premises.
But whilst these are important forms of cover, a cafe should really consider having a much more comprehensive business insurance policy.
The dangers of under-insurance
Under-insurance is a term used to describe a business that has insufficient insurance to cover all of their potential losses in the event of a claim.
For café’s the number of risks is huge. Public liability insurance will cover some of these risks, but certainly not all of them.
Here are a just a few of the risks not covered by public liability:
Fire, storm & water damage
Loss or damage to your stock
Loss or damage to your contents (i.e. cafe fit out, equipment etc.)
Theft – including the theft of money
Employee dishonesty resulting in a claim
Business interruption resulting in lost revenue as a result of a claim
None of these events would trigger a public liability insurance claim.
In fact, public liability insurance does not cover any of your company’s losses. It is only designed to cover losses suffered by the third parties as a result of your café’s business operations.
Cafe Insurance, get the right cover
Of course, you could go and take out every type of business insurance cover under the sun to give your cafe maximum protection, but in reality, all business owners know it simply doesn’t work that way.
The key is insuring your cafe in a way that provides the best value without costing you an arm and a leg.
To do this you need to look at which risks you most important to you and your cafe.
If you have invested a large amount of money into your fit-out, equipment and furniture, then it makes sense to ensure that these are properly covered.
If you hold large amounts of food and perishables, then it makes sense to insure against deterioration of stock which may occur due to a power outage or machinery breakdown.
Basically, whatever you can’t afford to lose or replace should be insured.
Holding a level of cover any less than this is leaving yourself at risk of under-insurance.
Getting a better outcome
By getting a cafe insurance quote from 365 Insurance you can select what types of cover you need to provide you the best level of protection whilst still fitting within your budget.
Sure, a basic public liability policy may be cheap, but if it’s insufficient for most café owner’s insurance needs and it will cost you a lot more in the event of a claim.
Don’t risk everything you’ve invested into your cafe just to try and save a few hundred dollars a year on business insurance do it right and get covered with 365 Insurance.