Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a cat café.
This article will discuss the primary insurance coverage for cat cafés, general liability insurance, as well as additional products that are appropriate for this industry.
Cat Cafes 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.
Situations That A Cat Cafe’s General Liability Insurance May Cover
Example 1: A client enters and gets scratched in the eye while comforting a cat. Even if they signed a release, you might be held accountable for damages if the cat had an ailment and passed it on to your client. If your company is sued, general liability insurance will most likely pay the losses.
Example 2: A cat climbs up on the table after a waitress pours a new cup of coffee for a client, spilling the hot drink onto their lap. If the spill causes serious burns, you might be held liable for their injuries. You may safeguard your company in the case of a lawsuit by purchasing general liability insurance.
Example 3: You’ve put up a picture booth as a Christmas present for your consumers. As a group enters the studio for their portrait, someone stumbles over a flash cable and falls hard on the floor, shattering their wrist. The consumer then sues your company for monetary damages. The expenses involved with the claim will most likely be covered by general liability insurance.
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 cat café pays between $500 and $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.
Cat Cafes Require Additional Coverage
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 cat cafés should have are as follows:
Insurance for Workers’ Compensation
Most states require firms with part-time or full-time employees to have workers’ compensation insurance. This coverage is intended to assist pay for medical expenditures and missed income if an employee is injured or falls sick on the job.
Insurance for Commercial Property
If you own the building where your cat café is located, you should consider purchasing commercial property insurance. This coverage protects your structure and the items inside it in the case of a fire, natural catastrophe, or theft or vandalism.
Coverage Options for Some Cat Cafes
In addition to the insurance listed above, your cat café may need other forms of coverage based on particular features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Data Breach
Many cat cafés have customer loyalty schemes in place to reward repeat clients for their business. However, if your computer systems are hacked or otherwise compromised, your customers’ sensitive information such as addresses, phone numbers, and credit card data may be taken. In the case of a system breach, data breach insurance may assist to safeguard your company and its consumers.
Insurance for Business Interruption
If you ever have to shut your doors for a lengthy period of time due to a disaster such as a fire or bad weather, having business interruption coverage is essential. This coverage might assist cover some of the costs connected with liquidating your business.
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.