Learn about business insurance requirements and the most common policies for convenience and drug stores in Texas.
Which insurance policies are required for convenience and drug stores in Texas?
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 Texas, general liability insurance can protect your business from expenses associated with common mishaps, such as customer property damage and injuries.
Businesses aren’t required to provide workers’ compensation insurance in Texas. The policy is still useful, however, as it covers medical bills and employee lawsuits related to work injuries.
What are the most common insurance policies for convenience stores in Texas?
The most common policies for convenience stores in Texas vary depending on revenue, the number of employees, 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.
Texas workers' compensation
Owners of convenience stores and drug stores in Texas are not required to purchase workers’ compensation coverage for their employees. Even though it's not required, workers’ compensation can help a business recover after an employee injury.
If an employee slips and falls on the job, for example, it can help pay for medical bills and partial lost wages while the employee recovers. It also covers legal expenses if an employee holds a business responsible for an injury.
Umbrella / excess liability insurance
Umbrella liability insurance is also called excess liability insurance. This policy 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 Texas pay for business insurance?
According to an analysis of Insureon applications, the typical convenience store in Texas can expect to pay more than the national median for some types of business insurance and less for other types.
For example, the median annual cost of a business owner’s policy in Texas is $4,118 for convenience stores, more than the national median of $2,724. On the other hand, the median annual premium for general liability insurance is $425 for Texas convenience stores, less than the national median of $817.
Though the chart below shows high costs for workers' compensation premiums for Texas convenience stores, keep in mind that the cost of this policy depends primarily on the number of employees.
Save time and money with Insureon
Insureon’s industry-leading technology helps convenience stores in Texas 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 Texas 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.