Why do convenience stores need insurance?
Criminals often target convenience stores, especially those that have minimal staff or are open 24 hours a day. Business insurance helps cover the cost of inventory theft, injuries, lawsuits, and damage from fires or storms.
Find affordable coverage
Owners of small convenience stores can save money on insurance coverage by comparing quotes from top-rated providers.
Fill out Insureon's easy online application to get free quotes and advice from a licensed agent.
What types of business insurance do convenience stores need?
These insurance policies cover common risks faced by convenience stores.
Business owner's policy
A BOP bundles general liability coverage and commercial property insurance in one policy. It’s often the most cost-effective type of insurance for a convenience store.
- Accidents that harm customers
- Theft and vandalism
- Business interruption incidents
General liability insurance
General liability insurance covers basic third-party risks, such as a customer slipping in a spill at your convenience store. Bundle it with property coverage for savings in a BOP.
- Customer bodily injuries
- Damaged customer property
- Product liability insurance
Workers’ compensation insurance
Most states require workers' comp for convenience store businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal costs from employee injuries
Cyber insurance
This policy helps convenience stores recover financially from data breaches and cyberattacks. It’s sometimes called cyber liability insurance or cybersecurity insurance.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial auto insurance
Most states require commercial auto insurance for vehicles owned by a convenience store. It helps pay for legal defense costs resulting from an auto accident.
- Injuries caused by your vehicle
- Property damage caused by your vehicle
- Vehicle theft and vandalism
Commercial umbrella insurance
Similar to excess liability insurance, umbrella insurance boosts coverage on general liability, commercial auto, and employer’s liability insurance policies once the coverage limit is reached.
- Customer injury lawsuits
- Customer property damage lawsuits
- Employee injury lawsuits
How much does insurance cost for retail stores?
A small convenience store with a few employees will pay less for insurance than a larger business.
Factors that affect convenience store insurance cost include:
- Retail products and services offered
- Business property and equipment
- Business income
- Business location
- Types of insurance purchased
- Policy limits and deductibles
- Claims history
How do I get convenience store insurance coverage?
It's easy to get business insurance for your convenience store, car wash, or gas station if you have your company information on hand. Our application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right coverage for your shop, whether you work independently or hire employees.
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FAQs about convenience store insurance
Review answers to common questions about convenience store insurance.
If I have to temporarily close my convenience store, am I covered by insurance?
Yes, you can buy business interruption insurance, which covers costs related to temporary closure due to a fire or other covered property claim. This coverage is often included in your commercial property insurance or business owner's policy.
Any business that relies on a storefront, inventory, or equipment for its income should carry this coverage as part of a strong risk management plan. You may also see it called business income insurance.
This policy will compensate your business for financial losses from a closure, such as:
- Operating expenses
- Loss of income
- Rent or lease payments
- Relocation costs
- Employee wages
- Taxes
- Loan payments
Business interruption insurance offers up to one year of lost income coverage, which means you can keep paying your employees during a lengthy rebuilding. Check your property policy's details to make sure this coverage is included and to find out how long it lasts.
Do convenience stores need product liability insurance?
Every business in the supply chain needs product liability insurance. That includes product designers, manufacturers, distributors, and retailers.
If a customer is harmed by a product sold at your convenience store, you could face an expensive lawsuit. That's true even if you weren't responsible for the product defect or other fault that caused the injury or damage.
In addition to carrying product liability insurance, convenience store owners should consider product recall insurance. The expenses associated with a recalled product can stack up quickly, and could include public relations management and other unexpected costs.
It's also important to reduce your product liability risks as much as possible. Claims are costly—and also cause your premium to increase.
Fortunately, product liability insurance is typically included in your general liability policy. If it's not included, you can ask your insurance agent to add the coverage as a rider, along with product recall insurance.
Are convenience stores insured against shoplifting?
Shoplifting and burglaries are a big risk at convenience stores, but crime insurance can help you recover your losses. You may want to consider the following policies to defend against theft:
- Commercial property insurance: This policy covers lost, stolen, and damaged property, including your building and your inventory. It's also called business hazard insurance, and you can bundle it with general liability insurance in a business owner's policy to save money.
- Employee dishonesty coverage: Also called a fidelity bond, this coverage protects employers against dishonest employees who steal from customers or your store.
Security systems and other precautions can help you prevent theft, and can even save you money on your property insurance. Check with your insurance company to see if they offer a discount on your premium for certain safety precautions.
What other insurance policies should convenience stores carry?
Depending on the unique risks of your convenience store, such as whether you lease a space, you may need other types of insurance. For example, you might consider:
- Electronic data processing (EDP) insurance: If a fire or natural disaster destroys your POS system or customer database, this policy can help cover the financial losses caused by the lost data.
- Liquor liability insurance: Depending on the laws in your state, you could be held liable for damages caused by an intoxicated customer who bought alcohol at your corner store.
- Equipment breakdown coverage: This coverage pays for sudden and accidental malfunctions of specialized equipment, such as beverage dispensers, refrigerators, and commercial food warmers.
- Hired and non-owned auto (HNOA) insurance: Convenience stores that rely on personal, leased, or rented vehicles should carry this type of auto liability insurance, as personal auto policies won't cover work-related driving.
You can often add these coverages to your general liability policy or BOP. Bundling different kinds of coverage is one of several ways to save money on business insurance.