Buy Convenience Store Insurance

Convenience store insurance is a type of insurance coverage specifically designed for convenience stores and small retail businesses. This type of insurance policy provides protection for a variety of risks, including liability, property damage, theft, and business interruption. It also provides coverage for specific convenience store risks such as food contamination, loss of income due to power outages, and damage to outdoor signs and displays.

The coverage limits and specific risks covered vary depending on the insurance provider and policy chosen.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small convenience stores ranges from $57 to $89 per month based on location, services offered, sales including alcohol, payroll and experience.

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 convenience store insurance coverage for your needs.

Business Liability Insurance

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 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 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.

Commercial Property Insurance

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 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 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 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.

Other Types Of Convenience Store Coverage

You may also need other types of 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.

Convenience stores can face various legal challenges and lawsuits for a range of reasons, including:

• Slip and fall accidents: Convenience stores can be sued if a customer slips, trips, or falls on their premises due to negligence, such as wet floors or unsecured displays. General Liability Insurance can help cover the costs of legal defense, settlement or judgment if a customer sues the convenience store for a slip and fall accident on their premises.
• Food poisoning or contamination: If a customer falls sick or gets food poisoning after consuming products from a convenience store, they can file a lawsuit for damages. Product Liability Insurance can help cover the costs of legal defense, settlement or judgment if a customer sues the convenience store for damages resulting from food poisoning or contamination caused by a product sold in the store.
• Robbery or theft: Convenience stores are also vulnerable to theft and robberies, and if a customer is injured or harmed during such incidents, the store can be held liable. Crime Insurance can help cover the costs of legal defense, settlement or judgment if a customer sues the convenience store for injuries sustained during a robbery or theft on the premises.
• Defective products: Convenience stores can be held liable for injuries or damages caused by defective products sold on their premises. Product Liability Insurance can also help cover the costs of legal defense, settlement or judgment if a customer sues the convenience store for injuries or damages caused by a defective product sold on their premises.
• Employee misconduct: Convenience stores can also face lawsuits if their employees engage in inappropriate conduct or behavior, such as harassment or discrimination. Employment Practices Liability Insurance (EPLI) can help cover the costs of legal defense, settlement or judgment if a convenience store is sued for employee misconduct such as harassment or discrimination.

Insurance can help protect convenience stores from the financial losses associated with these legal challenges. Overall, insurance can provide important protection to convenience stores by helping to cover the costs of legal defense, settlements or judgments, which can be financially devastating for a small business.