Business Insurance Requirements for Convenience Stores in California

Whether you operate a local business in Sacramento or a bodega in Los Angeles, your convenience store is likely a neighborhood fixture. As such, it deserves to be protected by quality business insurance.

California state law requires all small businesses with employees to carry workers’ compensation insurance. Though not state-mandated, your lease agreement will likely require you to show proof of general liability and/or commercial property insurance. Potential clients may also ask for proof of professional liability insurance before entering into a contract with you. This coverage can potentially protect you if a business discrepancy leads to a lawsuit.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers. Read more to find out which policies are most common for convenience stores in California, and start an application to get your free quotes today.

Find the right insurance policy for your convenience store

The type of insurance your California convenience store may need depends on a number of factors, including revenue, client contracts, and partnerships. However, these policies are most common.

General liability insurance: General liability insurance is the foundation of a convenience store’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Commercial property insurance: Commercial property insurance protects your owned commercial space and business equipment. It can cover the expense of repairing or replacing your business property if it's stolen, vandalized, or damaged.

Business owner's policy (BOP): Convenience store owners sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

Cyber liability insurance: Cyber liability insurance helps convenience store owners survive data breaches and cyberattacks by helping with recovery expenses. You may need this policy if you handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

Business interruption insurance: Business interruption insurance can cover lost revenue when a covered property event forces you to temporarily halt operations. This policy allows you to pay ongoing bills, such as rent, salaries, and loans, until you reopen.

California workers' compensation insurance: California state law requires all small businesses with employees to carry workers’ compensation insurance. Sole proprietors can cover themselves if they elect to. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages.

Even the most safety-conscious small business owner can’t fully mitigate the risk of workplace injury. In California, retail workers missed a median 13 days of work when they experienced a workplace injury in 2016, according to data from the Bureau of Labor Statistics. Retail workers across the United States are most likely to sustain an injury at work from overexertion or from falls, slips, and trips.

Common Workplace Injuries for Retail Workers in the U.S.

Business insurance costs for convenience stores in California

Convenience store owners in California can expect their business insurance costs to trend higher than the national median, according to an analysis of Insureon applications. One extreme example is workers’ compensation insurance, which is around $6,000 higher than the national median, costing around $650 per month in California. Keep in mind that this coverage is mandatory if you have employees, and you can be fined for noncompliance. It is also important to note that workers’ comp costs vary depending on the number of workers you employ.

Median Business Insurance Costs for California Convenience Stores

Save time and money with Insureon

Insureon’s industry-leading technology helps convenience store owners in California save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in California and can answer your questions as you consider coverage.

To make the application go even 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 convenience store insurance quotes today.