Dana and her partner run two coffee shops in Tacoma, one near the university and one in a converted storefront in the Proctor district. Between them they have eleven employees, two espresso machines that each cost more than a used car, and a roaster in the back of the second location.
Their renewal came in higher than last year, and Dana asked us one question: can you find something cheaper?
What they asked for
A lower premium on their business owners policy. They were not looking to add anything.
What the review found
We shopped it, and we did find a better rate. But three things in the current program mattered more than the price.
No equipment breakdown coverage. A standard BOP property form covers fire, theft, and water damage. It does not cover an espresso machine or a roaster that fails from an electrical surge or a mechanical breakdown. For a café, the machine is the business: when it goes down, sales stop.
Business income that would not last. The policy covered lost income for a limited period after a covered loss. A serious fire at the Proctor location, with a build-out, permitting, and a custom counter to replace, would take longer than that to reopen. Their rent and loan payments would keep running after the coverage stopped.
Eleven employees and no EPLI. Food service has turnover, young staff, late shifts, and managers who were baristas last year. Dana had never been sued by an employee, but she had let two people go in the past year. Her BOP's liability coverage specifically excluded claims from employees about how they were treated at work.
What we put in place
We moved the BOP to a carrier with a better rate for food service and added equipment breakdown covering the espresso machines, roaster, refrigeration, and point of sale hardware, plus spoilage when refrigeration fails.
We raised the business income coverage to a period built from a realistic rebuild timeline for each location, and added extra expense so they could rent equipment or run a pop-up while repairs happened. That is the part of commercial property coverage that keeps a small food business alive after a loss.
Then we added employment practices liability. The carrier includes an HR hotline, which Dana has already used twice to talk through a difficult termination before it happened.
The total came in slightly above their old premium, not below it. Dana's view, after walking through what each piece does: the old policy was cheap because it left out the three things most likely to go wrong.
Why it mattered
Eight months later, a power surge during a storm took out the main espresso machine at the university location. The repair and a rental machine were handled under equipment breakdown, and lost sales for the days in between fell under business income. Under the old policy, all of it would have been out of pocket.
If you run a café or coffee shop
- Ask specifically about equipment breakdown; it is usually an endorsement
- Size business income to how long a rebuild really takes, not a default
- Count your employees as an exposure; general liability excludes their claims
- Check that spoilage covers off-site utility outages, not just your own equipment
More on building coverage for restaurants and food businesses. Renewal coming up? Get a free policy review first.