Learn about business insurance requirements and the most common policies for convenience and drug stores in California.
Which policies are required for convenience and drug stores in California?
If your convenience or drug store has a physical location with a commercial lease, your property manager may require you to purchase general liability insurance. Commonly purchased by convenience store owners in California, general liability insurance can protect your business from expenses associated with common mishaps, such as customer property damage and injuries.
To meet state requirements in California, every small business that has employees must provide workers’ compensation insurance, which covers lost wages and medical bills for work injuries.
What are the most common policies for convenience stores in California?
The most common policies for convenience stores in California vary depending on revenue, property value, partnerships, and other factors.
General liability insurance
General liability insurance is the foundation of a convenience store’s protection, with coverage that extends to customer injuries, customer property damage, and advertising injuries. Most commercial leases require you to have this coverage.
Business owner's policy (BOP)
A small convenience or drug store might qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability insurance at an affordable rate.
California workers' compensation
If you own a convenience or drug store in California that has employees, your business must have workers’ compensation coverage. If you own a sole proprietorship, having workers’ comp will still help you cover your medical bills and lost wages if, for example, you slip and fall while mopping or develop carpal tunnel after years of using the cash register.
Umbrella / excess liability insurance
Umbrella liability insurance, also called excess liability insurance, provides additional coverage once a convenience store reaches the limit on another liability policy, such as general liability insurance or employer’s liability insurance. It can protect against escalating lawsuit costs.
What do convenience stores in California pay for business insurance?
According to an analysis of Insureon applications, the typical convenience store in California can expect to pay more than the national median for most types of business insurance.
For example, the median annual cost of a business owner’s policy in California is $4,604, more than the national median of $2,724. Similarly, the median annual premium for workers' compensation insurance is $7,899, far more than the national median of $1,940. Keep in mind that the cost of a BOP increases with the value of your business property, while the cost of workers' comp increases with the number of employees.
Save time and money with Insureon
Insureon’s industry-leading technology helps convenience stores in California save time and money shopping for insurance by comparing policies from top U.S. providers. Start a free online application to review quotes for the policies that best fit your business. Our insurance agents are licensed in California and can answer your questions as you consider coverage.
To make the application go quicker, have this information ready:
- Workforce details, such as the number and types of employees
- Current and projected revenue
- Business partnerships
- Insurance history and prior claims
- Commercial lease insurance requirements
Apply for free insurance quotes for convenience stores today.