CAFE INSURANCE CASE STUDY
Four-Staff Suburban Cafe, $20M Public Liability and Glass Placed Within Two Days
A cafe owner in metropolitan Sydney called two days before the cover start date, needing $20 million public liability and replacement glass cover. Two insurers quoted, two did not, and cover commenced on the requested date.
THE SITUATION
A cafe in metropolitan Sydney with four staff and around $350,000 turnover called Tank Insurance two days before the date it needed cover to start. The owner wanted $20 million public liability and replacement glass cover for the shopfront in place by that date.
OUR APPROACH
Cafes are written by many business pack insurers, so the work was in getting comparable terms back fast and applying the NSW small business stamp duty exemption correctly.
- Four insurers were approached with turnover, staff numbers, the cover required and the commencement date.
- Two quoted, at approximately $1,100 and $1,400 for the same $20 million limit and glass cover. One declined on the property's location, and one declined to quote.
- The stamp duty exemption was applied before the premium was presented, so the client compared final figures rather than pre-exemption ones.
THE CHALLENGES
Two days was enough time here because the information was complete on the first call. Turnover, staff, the exact covers required and the start date are the four things an insurer needs; chasing any of them afterwards is what turns two days into a week.
A decline on property location is also worth understanding. It usually reflects that insurer's aggregate exposure in the area rather than the cafe itself, and other insurers rate the same location differently.
THE OUTCOME
$20 million public liability with replacement glass cover was placed with Hollard at a premium of approximately $1,100 a year, with cover commencing on the requested date.
Final Solution: $20 million public liability and shopfront glass for a four-staff cafe at around $1,100 a year, bound within two days of first contact.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our cafe insurance guide and the plate glass insurance page.
CAFE OWNER QUESTIONS
What this placement answers for other cafe owners
How much does cafe insurance cost?
How quickly can a cafe get public liability in place?
Why would an insurer decline a cafe because of its location?
CAFE INSURANCE
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
More Case Studies
All case studiesRegistered NDIS Provider, Declined Six Times on Occupation
Small registered provider running community access with bike riding and bushwalking, declined by six insurers on occupation, then placed on a business pack with liability at around $500 a year.
Read case study Business PackHigh-Pressure Cleaning Business: Portable Equipment and Liability
A Sydney high-pressure cleaning business working at height needed $20M public liability plus cover for portable equipment. Three insurers declined on occupation. Placed through CGU.
Read case study Business PackRestaurant Business Pack After an Outdated Sum Insured
A restaurant trading on a years-old policy schedule with revenue understated by more than fourfold. We rebuilt the submission on current figures and placed a right-sized business pack through Zurich.
Read case studyOpening or Renewing a Cafe?
Tell us your turnover, staff numbers, the covers you need and your start date. With those four things we can usually have terms back within 48 to 72 hours.