Convenience Store Insurance

The coverages that make up a convenience store insurance policy may differ depending on your services and the products sold. However, most common convenience store insurance policies will include the following:

• Commercial General Liability (CGL) Insurance: CGL or “slip-and-fall insurance” provides convenience stores with coverage against the day-to-day risks that could occur on-premises. A lot of people will come and go from your store every day – if a third party is injured or their property is damaged at your location, they could hold you liable. Suppose a customer slips over a spilt slushy drink and hurts their back. In this case, CGL could cover third-party medical bills.

• • Product Liability Insurance: As part of a general liability policy, you can be covered for injuries or property damage caused by defective products sold in your store – this includes the food and drink products you sell. For example, a customer buys fresh ground beef but becomes severely ill – upon inspection of the package, it turns out the ground beef was five days out-of-date when it was sold. Your customer sues, alleging your negligence in removing out-of-date products made them severely ill. Product liability insurance may cover your legal defence costs and any third-party medical expenses.

• Commercial Property Insurance: Whether you own or rent your premises, commercial property insurance protects your location and the contents within it from insured risks that occur, like fire, theft, or vandalism. Say your store is vandalized overnight, and you return to a smashed shop window in the morning. Commercial property damage could cover the costs of replacing the window and cover any subsequent damage or vandalism inside your business.
  • Business Interruption Coverage: Often included under a commercial property insurance policy, this coverage provides financial reimbursement for lost income following an insured event. Say after the vandalism example above; you had to close up shop for a few days to replace your window and clean up. Business interruption coverage could cover the estimated lost income based on previous financial data.

• Equipment Breakdown Insurance: Equipment breakdown insurance covers the costs to repair or replace commercial equipment (such as a kitchen appliance) that are broken down or damaged due to an internal issue, such as a mechanical or electrical failure. If your equipment breaks down, this insurance can also cover lost expenses directly related to the event. Suppose you have a walk-in freezer for additional frozen inventory that breaks down due to a mechanical fault. Equipment breakdown coverage could cover the costs to repair or replace the freezer and provide financial coverage to replace the spoiled food. Please note that an equipment breakdown insurance policy can only be purchased with commercial property insurance.

• Cyber Liability Insurance: Cyber liability insurance protects you against liability risks to personal data stored electronically, such as a data hack or cyber-attack. If your POS system is involved in a data breach, cyber liability insurance can cover legal fees, notification costs and the costs to restore data protection.

• Legal Expense Insurance: Legal expense insurance provides legal coverage in certain situations where you’re not already covered by other insurance policies (such as legal assistance needed for an employee injury). This coverage can cover the costs of legal advice and retaining legal representation.

• Commercial Crime Insurance: Also known as fidelity insurance, commercial crime insurance protects business owners from a loss of funds (e.g., money, inventory) that was directly caused by internal theft, forgery, counterfeiting or impersonation. This coverage can cover the criminal actions of employees and third parties, including customers.