Insurance Basics for Coffee Roasters
In our years of insuring the coffee industry nationwide, we’ve seen the meteoric rise of not only independent cafes and coffee shops, but coffee roasters as well. Coffee roasting companies generally roast raw beans and distribute to coffee shops within a confined geographic area, some even ship nationally such as Stumptown Coffee in Portland, Oregon. We’re now seeing many roasters having tasting rooms and cafes within their roastery, and some coffee shops are buying small batch roasters to roast their own beans in house. This helps them deliver the very freshest coffee to their clientele. We’re able to insure in every state and have recently insured coffee roasting businesses in Virginia, Missouri, and Florida. Coffee roasters generally have trouble finding the proper insurance from their local agent and have a hard time finding an agent who is knowledgeable about the industry. That’s where we come in to help.
Coffee roasters generally need to have just a few coverage options in mind when sourcing insurance. First and foremost is general liability, including products liability. You’ll usually want a $1M liability policy before moving forward and you’ll find that most coffee shops or farmers markets that want to carry your product will require this. You’ll also want to make sure you have coverage for your equipment and inventory. We’ve insured roasting equipment ranging from $5,000 to $50,000 depending on the scale of your operation. One reason some insurance companies and agents shy away from insuring coffee roasters is that they’re scared of the equipment and are unsure of what it really is. Many are wondering if it carries the same liability concerns as deep fryers or open flames. This is laughable to most people in the know about this type of equipment. Generally, coffee roasting machines can be compared to ovens and many are electric cookers with a hopper mechanism attached. I usually ask insurance companies to think of a popcorn maker or an oven when envisioning the equipment roasters use. These machines DO get very hot and it’s not to say that there is no risk.
We have several companies that will insure these types of businesses on a national scale. Although our offices are in Indiana, Ohio, and Pennsylvania, we are licensed in most of the surrounding states and work with brokers to insure businesses even further than our licensing allows. Whether you’re a startup roaster that needs the bare minimum coverage or have a huge operation spanning multiple states, we can properly insure you for the most competitive price on the market. We’re also very willing to expand and share our network of cafes and fellow roasters with all of our clients. Please don’t hesitate to contact us regarding your coffee business and we’ll be sure to find you the most appropriate insurance policies to suit your needs. You can find more information about this by reading our Coffee Niche page or by reviewing our past blog posts about the industry and how we can help you insure your coffee business properly.