Finally opened that dream coffee shop? Discover the 4 key things every owner must discuss with their insurance broker

You’re living the dream! You’ve wanted to own a coffee shop or café for so long, and now you’re opening one.

There’s so much to think about, so it would be easy to go with the first insurance quote you receive.

However, there are 4 key areas about which you need to talk to your broker – so they can get you cover which protects your business properly…

1. Your supply chain and logistics operation

Think back to what happened to Kentucky Fried Chicken in February because its logistics operation couldn’t get its main ingredient to its stores. The closure of shops, the loss of revenue, the impact on its brand. Now, after going back to its original logistics supplier and ironing out the problems, KFC has launched a major TV advertising campaign looking at the way it coped with adversity to mitigate the damage to its reputation.

On a much smaller scale, your café or coffee shop will need to show your insurance brokers what the risks are when it comes to your logistics and supplies. That helps them find the right cover for you.

How established are your suppliers? Do you have back-ups in case something goes wrong with them? How will those supplies reach your coffee shop?

2. How your business will cope if you become ill

For most small business owners, having a contingency plan to cope if they become ill is vital. Your coffee shop can’t just close its doors because of it. It will need someone to ensure you have enough staff, that wages will be paid, and that banking can be carried out.

Developing a business continuity plan helps your insurance broker show insurers how the risk is being managed.

3. How you are planning for wear and tear on your equipment and fittings

Having a plan to cope with ageing equipment such as your espresso machines and wear and tear on your tables, chairs, flooring, and decoration is important.

Insurers will want to know how depreciation is being managed. Having elderly equipment which is more likely to malfunction or short (and, potentially, cause a flood or fire) is more of a risk for an insurance company.

Ensuring your furniture and flooring is in good order helps to manage the risks under public liability insurance cover.

4. The training and experience you and your staff have

Having people who are qualified and trained in food safety, and a system for managing the requirements under food safety regulations, helps you reduce the risks to your business.

There is less likely to be an outbreak of food poisoning, for example, if food is prepared and stored safely, and all the required checks are made.

Your broker will need to know about everyone’s qualifications, their training, and your system of logging your food storage.

Need advice? Our Severn Bay team of small business insurance specialists is here to guide you on the right insurance products to ensure you’re protected. For more information please contact us on 029 2047 0375.