Illinois Convenience Store Insurance. Convenience stores sell perishable staples such as milk and bread and immediate need products such as coffee, condoms or tobacco to customers who are in a hurry and want to avoid traveling to larger retail stores. Convenience stores may also stock auto maintenance items, books, and magazines, canned or frozen food, household cleaning items, liquor products (where permitted), lottery tickets, newspapers, novelties, over-the-counter medications, personal care products, and snack items.
There may be microwave ovens available, so customers can heat their pre-packaged food items. Others have delicatessens on premises that offer sandwiches, pizza, and beverages to go. Other services may include car washes, gasoline, diesel fuel, kerosene, propane, and fuel oils. Many are located close to highways or other busy intersections and are open on a 24-7 basis.
Convenience stores are all around us, making our lives easier by offering products we need on the go. If you own a convenience store, you know just how lucrative the convenience store business can be. However, with business ownership comes responsibilities, including the need to have insurance that covers you and your business in the event that you are sued.
You must protect yourself and your business interests with the right levels of liability and property insurance as well as other Illinois convenience store insurance types that are specific for your business.
Illinois convenience store insurance protects your shop from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Around 40,000 convenience stores are operating in the U.S. as of 2014. Approximately 138,000 people work in convenience stores. Revenue from convenience stores amounts to around $35 billion each year. Because convenience stores are such diverse businesses, no two policies are alike, but many share the same bundle of different coverage types.
Your commercial broker can help you understand the nuances of the industry from a risk perspective, so you can be assured that you are fully protected, based on your individual risks and your tolerance to risk. Your broker will look at what you need to protect, your assets and your liabilities, when helping you choose the right Illinois convenience store insurance coverage for your needs.
Protecting your business against property damage is a big part of being a responsible business owner. Other than your building or storefront, the inventory inside your store is one of your biggest assets. Building insurance is an important part of you Illinois convenience store insurance policy. It covers the damage that might occur to your actual store, the building, its canopies, and gas pumps, assuming you are the owner of the store and premises. If you rent your store, then you may be required by your landlord to purchase this coverage. Consult with your insurance agent to review your lease agreement and determine if you need to buy the coverage or if the landlord provides it for you.
The contents of your business should be covered by contents or business personal property insurance. This coverage provides protection for your inventory, shelving, fixtures, computers, and any equipment. Also consider boiler and machinery insurance. This Illinois convenience store insurance covers the rental, repair, or replacement expense should your machinery necessary for operating your business go on the fritz. Perhaps your store sells food products that must be operational in order for you to do business. If your freezers or refrigerators break down, then your inventory goes bad. Spoilage insurance can be part of your boilers and machinery coverage, compensating you for this loss.
Commercial crime insurance is a good idea for all IL convenience stores, since they are oftentimes the target of robberies and burglaries. If your store is targeted, this insurance mitigates any financial losses that may result. This insurance is recommended in addition to risk management practices like installing cameras to monitor customer activity; this can reduce the rates you pay for your coverage.
General liability insurance should be a cornerstone of your coverage. This protects you in the event of slips and falls or other injuries to customers, vendors, and others on your property. It can also pay for defense costs if you find yourself faced with a liability claim in court. Premises liability coverage protects you from third-party claims for damage to property or bodily injury. This covers you from claims that may result from activity in your store, in its parking lot, gas area, and other locations around your business.
If you sell liquor, you may be required by the state in which you live to purchase IL liquor liability insurance. If an intoxicated person causes harm after buying liquor from you, this coverage handles any claims or awards up to the limits spelled out in your Illinois convenience store insurance policy.
Cyber liability coverage is becoming more important for convenience stores, especially for those that sell gasoline. This is due to skimming devices that are sometimes planted on pumps in order to steal patrons' info. If this happens at your store, cyber liability policies can help to reduce the financial fallout for you.
You may also need other types of Illinois convenience store insurance coverage to fully protect your business and personal interests. Worker's compensation, for example, is required in most states. You may also need business income insurance to provide an income stream if your business is forced to halt for a covered peril. Employment practices liability coverage can provide protection for suits that may arise if someone feels as if you discriminated against them.
Premises liability exposure is very high due to public access to the premises. Trips, slips, and falls are major concerns, especially during inclement weather when customers track snow, mud, and water into the store. All goods should be kept on easily reached shelves so that customers do not pull items down on themselves. Customers can drop or spill items and may carry food or fountain drinks throughout the store, generating spills. Housekeeping should be excellent, and spills must be cleaned up promptly, with warning signs posted after mopping.
Floor coverings must be in good condition, with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. There should be well marked, sufficient exits with backup lighting systems in case of power failure. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and falls. Customers can be injured or killed during a robbery. Security of visitors in parking areas is rapidly becoming the responsibility of the owner or operator of the premises. Outdoor security and lighting must be consistent with the area.
Products liability exposure due to the possibility of food poisoning, contamination spoilage, foreign objects in the product, and allergic reactions. Monitoring the quality of food received, posting lists of ingredients, and maintaining proper storage temperature can reduce this exposure. Accurate records must be kept of products and batches to monitor for recalls. There should be controls in place to prevent contamination from chemicals such as insecticides and pesticides used for pest control. The stock should be regularly rotated so that older stock is sold first. Out of date stock must be removed on a regular basis and discarded.
Liquor liability exposures are from selling liquor to underage individuals and those already intoxicated as there is no on-premises consumption of alcoholic beverages. Any failure to comply with state and federal regulations can result in the loss of a liquor permit. There must be a set procedure to check ages of anyone attempting to purchase alcohol. Employees must be trained to recognize signs of intoxication.
Workers compensation exposures are very high due to heavy lifting and robberies. Improper lifting can cause back injury, hernias, sprains, and strains. Floors may become slick, resulting in slips and falls. Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers.
Controls must be in place to maintain, check, and prevent such injury. Cleaning staff can develop respiratory ailments or contact dermatitis from working with chemicals. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Injury or death during holdup is a major cause of loss. Employees should be trained to respond in a prescribed manner. Often, there are defensive tools available to the employees such as pepper spray, baseball bats, or guns.
Proper training in the use of implementations for self-defense that is provided or permitted is essential. Employee turnover may be high. Company incentives to encourage long-term employment are positive signs of management control. Workers must also be able to deal with unruly customers.
Property exposure is very high from electrical wiring, cooking equipment, refrigeration units, and heating and air conditioning systems. The wiring must be current and up to code. Due to its combustibility, an ammonia detection system should be in place if ammonia is used as a refrigerant. If there is cooking on premises, all grills and deep fat fryers must have automatic fire extinguishing protection, hoods, and filters. There should be fuel shut-offs and adequate hand-held fire extinguishers. Kitchen areas must be kept clean and grease free to prevent the spread of fire. Filters should be changed regularly.
Smoking can be a fundamental problem and should be prohibited on premises. Spoilage exposure is very high if refrigeration equipment malfunctions or loses power. A small fire or power outage of even moderate duration can render all fresh and frozen goods to be condemned as unfit for consumption or sale. Alarms and warning devices should be in place to alert the operation when there is a loss of power. Backup power, such as a generator, should be available. If there are gasoline sales, additional exposures include fumes and the potential for explosion.
Theft is a concern, especially when alcoholic beverages or tobacco products are available. Appropriate security measures should be in place, such as keeping more expensive items behind the counter and inaccessible to customers and having security mirrors prominently displayed throughout the store. Premises alarms should report to a central station or police department after hours.
Equipment breakdown exposures are high as operations are dependent on refrigeration equipment, cooking equipment, and fuel pumps if fuel is sold.
Crime exposure is severe for both employee dishonesty and theft of money and securities. The 24-hour or late night/early morning hours, the extensive number of cash transactions, plus attractive locations close to major thoroughfares and interstates, make convenience stores a target for a holdup. A bulletproof cashier's cage may be necessary for high-crime areas. Background checks should be conducted on all employees.
The inventory must be under the supervision of more than one individual so that there are checks and balances. All orders, billing, and disbursements must be handled as separate duties. Regular audits must be conducted. Money should be regularly stripped from the cash drawers and placed in a safe away from the front door. Irregular drops should be made to the bank to prevent a substantial accumulation of cash on the premises.
Inland marine exposures include accounts receivables from billings to customers, computers for inventories and sales transactions, signs, and valuable papers and records for suppliers' and employees' information. Backup copies of all records, including computer records, should be made and stored off premises.
Business auto exposure generally is limited to hired or non-owned liability exposures from employees running errands.
The bottom line is that you need to review your coverage needs with a professional to ensure that you get the protection your store needs.
For moguls who are thinking about conducting business-related affairs in Illinois, it's important to have an understanding of the state's economic outlook. It's also a wise idea to familiarize yourself with the regulations regarding IL commercial insurance.
Here we provide some insight regarding the data that pertains to economy of Illinois. We also provide a brief overview about the types of commercial insurance coverage business owners are required to invest in, or should invest in, even if it isn't mandatory.
According to several reports that compile the economic data for each of the 50 states and compare that information to the national average, Illinois isn't in the best position. While there has been some improvement, the gains have only been slight. Income and employment rates have risen, and the housing market has increases; however, the gains in these areas have been minimal, especially when compared to the gains that other states have experienced.
While the unemployment rate has improved, falling to 4.8 percent in 2017 after it was stuck at a rate of almost 6 percent in 2016 and 2015, it appears that in reality, the IL labor force and employment gains are contradicting. In 2019, tens of thousands of people fell out of the state's labor force.
Looking to the future, it is predicted that while the employment rate in Illinois will grow, the rate at which it will grow will be much lower than the national average. Currently the projected annual job growth of the state is .5 percent. Following are some of the largest industries in IL.
The Illinois Department of Insurance regulates insurance in IL. Businesses are required to carry workers compensation insurance. Workers comp is mandatory for any business that employs either an hourly or a salaried workforce, even if that workforce is just one person. Organizations are also required to carry IL commercial auto insurance if they use vehicles for any business-related reasons, such as deliveries, transport, or client visits.
General liability insurance is not required, nor is commercial property insurance; however, it is a wise idea for companies to invest in this type of coverage, as it will safeguard from lawsuits or losses that their properties could sustain.
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
Retail stores are susceptible to premises liability claims because of customer traffic, but large department and specialty stores are more susceptible than most.
All retail stores have significant property exposures. The on-hand stock represents a considerable investment, but the amount on hand fluctuates seasonally. For this reason, physical damage insurance on this property must be arranged carefully. When the insured occupies a non-owned building, insurance coverage must be arranged for the insured's interest in extensive improvements and betterments made to the premises.
Crime insurance, in the form of employee theft and money and securities coverage, is also very important.
The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.
Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.
Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.
When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.
Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.
Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.
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