Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a bubble tea shop.
This article will discuss the primary insurance coverage for bubble tea shops, general liability insurance, as well as additional policies that are appropriate for this industry.
Bubble Tea Stores Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That A Bubble Tea Store’s General Liability Insurance May Cover
Example 1: One of your clients stumbles on a spilt liquid and suffers a head injury, requiring them to miss work for two months. Any medical bills, legal fees, and/or settlements resulting from the accident would be covered by general liability insurance.
Example 2: A client takes one of your items home and leaves it for someone else to consume. That individual is allergic to one of the product’s ingredients. In most cases, general liability insurance will cover diseases caused by one of your goods.
Example 3: You bring your equipment off-site for a special event, and when bringing it inside, you drop it and hurt a venue employee. The venue does not pay all of that person’s medical expenses. General liability insurance may cover incident-related medical bills as well as protect you from any litigation made by the venue or an employee.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American bubble tea shop costs $500-$1,200 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Bubble Tea Stores
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all bubble tea shops should have are as follows:
Insurance for Workers’ Compensation
Workers’ compensation insurance is normally needed by law for any firm with part-time or full-time workers. It covers expenditures incurred as a result of on-the-job occurrences such as burn injuries or infections received when handling raw food items.
Coverage Options for Some Bubble Tea Shops
In addition to the insurance listed above, your bubble tea shop may need other forms of coverage based on particular features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Vehicles
If you have corporate cars that are utilised for business purposes, you need commercial auto insurance. This will safeguard the corporate car or other property against harm caused by an employee while driving. This is an extremely crucial insurance plan to have if you cater events off-site.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.