An ice cream shop business sells ice cream and also provides spaces (seating arrangement) where people can relax while taking their ice cream or other desserts and snacks that the ice cream shop is offering on their menu.
With the above in mind, it will be safe to say that every ice cream shop business needs insurance policy coverage, and the insurance policy coverage for an ice cream shop business is to protect the patrons (customers), the business owner, the employees, and lastly the property.
Best Insurance Policy for Ice Cream Shop Business
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General Liability Insurance
General liability insurance offers liability insurance coverage that helps protect a business from claims caused by bodily injuries, equipment damage, fire outbreaks, or property damage to others within your business premises.
Cost: The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small ice cream shops ranges from $27 to $39 per month based on location, size, payroll, sales, and experience.
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Commercial Property Insurance
The fact that you will be operating your ice cream shop from a rented, leased, or owned indoor property means that you will require commercial property insurance coverage for the property.
Aside from that, you will need commercial property insurance to protect all the equipment and gadgets in your facility. Please note that all commercial properties in the United States are mandated to have commercial property insurance coverage.
Cost: The average cost of annual premiums for commercial business insurance for an ice cream shop can range from as low as $300 annually up to $3,000 annually. With an average premium rate of $1,200 per year.
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Commercial Auto Insurance
The fact that ice cream shops usually transport their supplies from the market to the shop, or carry out delivery of orders makes it mandatory for them to subscribe to commercial auto insurance. Commercial auto insurance protects the cars, trucks, and vans that you use for your ice cream shop business.
Cost: The average premium for commercial car insurance is around $147 per month, and on average, commercial auto insurance costs around $1,762 per year.
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Workers’ Compensation Insurance
The fact that you will have employees working with or for you means that you need workers’ compensation insurance.
As a matter of fact, in the United States of America and in most countries of the world, it is illegal to have workers and not have workers’ compensation insurance policies to protect them. Workers need to be protected from workplace accidents, disability et al.
Cost: Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and payroll (per $100).
Please note that food and beverage-related businesses (including ice cream shops) pay an average premium of about $115 per month for workers’ compensation insurance, but you could pay more or less depending on the risks your workers are exposed to.
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Business Interruption Insurance
A business interruption insurance policy provides coverage to ensure that in case something unfortunate happens and affects your ice cream shop, you will not go out of business. A business interruption insurance policy keeps your ice cream shop business afloat even when things go wrong.
The restoration period of your business interruption coverage is the length of time when your policy will help pay for lost income. In most cases, there is a 48 to 72-hour waiting period before your policy kicks in with income coverage.
Cost: The cost of business interruption insurance depends on your business property value and income.
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Umbrella Insurance
Although, umbrella insurance policy cover might not be compulsory for all businesses, but should you need robust coverage for your ice cream shop business, then you will need umbrella insurance policy cover. This is so because umbrella insurance provides an additional layer of coverage that goes beyond the limits of primary liability insurance.
Basically, umbrella insurance policy coverage provides excess liability protection in case of catastrophic events that may cause significant financial losses to your ice cream shop business.
Cost: The cost of commercial umbrella insurance varies based on your level of risk and how much coverage you buy, among other factors. Small businesses pay about $40 per month for each $1 million of umbrella coverage.
Please note that the cost of an insurance policy cover will depend on the level of risks, the insurance company, and of course, the type of insurance policy cover.
Basically, the average ice cream shop business in the United States of America spends between $400-$1,100 per year for $1 million in general liability coverage and other insurance policy cover.
What Insurance Companies Offer Such a Policy?
- Mutual of Omaha
- New York Life
- State Farm
- MassMutual
- Pacific Life
- OneAmerica
- 21st Century Insurance
- Acuity Insurance
- Allianz Life
- Allied Insurance
- Allstate
- American National Insurance Company
- Liberty Mutual
- Lincoln National Corporation
- Manhattan Life Insurance Company
- Nationwide Mutual Insurance Company
- New York Life Insurance Company
- MEGA Life and Health Insurance
- Gerber Life Insurance Company
- Globe Life And Accident Insurance Company
- GMAC Insurance
- Accident Fund Insurance Company of America
- American International Group (AIG)
- AmTrust Financial Services
- Zenith Insurance Group.
Aside from the insurance companies listed above, there are several other insurance companies not listed above that also provide all the needed insurance policy covers that an ice cream shop business will need.
Make sure you contact an insurance broker in your city to advise you accordingly as regards the insurance policy cover that is suitable for your ice cream shop business, and of course, the insurance company that will provide the best coverage and of course one that will suit your budget.