Business Insurance Requirements for Convenience Stores in Michigan

As the owner of a convenience store in Michigan, you provide a valuable service to busy people whether you own a neighborhood corner store or a higher end specialty store. However, owning an independent store comes with challenges: the risk of robbery, customer injury, and other potential misfortune. Without the financial security that a large chain store has, even one incident could devastate your business. That’s why business insurance is vital for your convenience store.

Michigan state law requires all small businesses with three or more employees at any one time, or one or more workers for 35 or more hours per week for 13 or more weeks, to carry workers’ compensation insurance. Most commercial leasing agreements require proof of general liability insurance and/or commercial property insurance. Potential suppliers may ask for proof of professional liability insurance before entering into an agreement with you. Also called errors and omissions insurance, this policy can provide protection from a lawsuit brought against you due to a business error.

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

Find the right insurance policy for your convenience store

The most common policies for Michigan convenience stores vary depending on factors including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business type.


Business type General liability / BOP Business interruption Workers' compensation
Small convenience store with only one part-time employee X X  
Store with full-time employees X X X


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 expenses to repair or replace 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 to cover 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 an event forces you to temporarily halt operations. This policy allows you to pay ongoing bills, such as rent, salaries, and loans, until you reopen.

Michigan workers' compensation insurance: Michigan state law requires all small businesses with three or more employees at any one time, or one or more workers for 35 or more hours per week for 13 or more weeks, to carry workers’ compensation insurance. Sole proprietors are excluded from this requirement. Michigan maintains a competitive state fund, meaning coverage can be purchased through the state as well as through a private insurer. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. When retail workers in the United States suffer a workplace injury, it is most commonly due to overexertion or a fall, slip, or trip, according to data shown in the chart below from the Bureau of Labor Statistics.

Most Common Workplace Injuries: Retail Workers in the U.S.

Business insurance costs for convenience stores in Michigan

The median cost of business insurance for convenience stores in the United States is around $400 per month, according to an analysis of Insureon applications. It may be tempting to go without costly policies to reduce overhead. But properly insuring your small business is especially important in Michigan, as small business owners can face severe penalties for noncompliance with the state’s workers’ compensation laws. If an employee is injured on the job without this policy in place, any short-terms savings could be wiped away in an instant. Your injured employee could sue you for civil damages. You could also face fines of $1,000 for each day your small business is uninsured, and a minimum of 30 days in prison. To save money on your insurance, ask your agent about bundling policies.

Median Insurance Costs for Michigan Convenience Stores

Save time and money with Insureon

Insureon’s industry-leading technology helps convenience store owners in Michigan 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 Michigan 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.