Opening a convenience store can be a rewarding and profitable venture. However, it's important to protect your investment by obtaining the right insurance coverage.
In this blog, we will discuss the various types of c-store insurance you may need and how a point of sale (POS) solution can help you manage your business more efficiently.
1. General Liability Insurance
General liability insurance is essential for any business, including convenience stores. This type of insurance protects you from financial loss resulting from third-party claims of property damage, bodily injury, and personal injury due to your business operations. For example, if a customer slips and falls in your store, general liability insurance can cover the costs associated with their medical treatment and any legal fees.
You may be required to obtain a general liability policy before you can begin processing transactions, so make sure to prioritize this type of insurance! General liability insurance varies in cost depending on industry and business size, but most small business owners can expect to pay between $30 and $110 monthly.
2. Property Insurance
Property insurance protects your convenience store's physical assets, such as the building, fixtures, and inventory. This type of coverage is critical in case of damages caused by events like fires, storms, or theft. Depending on your location, you may also need to consider additional coverage for natural disasters like floods or earthquakes.
This is another essential type of insurance, because, if you’re working with limited cash flow, you likely will not have the budget to handle major property damage. Commercial property insurance will run you anywhere from $25 to $125 monthly.
3. Workers' Compensation Insurance
If your convenience store employs staff, workers' compensation insurance is a must. This type of insurance covers employees' medical expenses and lost wages in the event of work-related injuries or illnesses. It also provides protection from potential lawsuits filed by injured employees.
As a small business owner, you understand the importance of your employees’ well-being — they are the backbone of your business. Workers’ compensation insurance varies depending on your industry and the size of your team, but retail businesses pay anywhere from $500 to $4,000.
4. Business Interruption Insurance
Unexpected events like natural disasters or equipment breakdowns can disrupt your store's operations and result in lost income. Business interruption insurance compensates you for the lost revenue during the period your store is unable to operate due to a covered event.
This type of insurance can keep your business afloat during hard times, and will run you between $25 and $125 — but you may be able to bundle it in with other types of insurance, such as your general liability policy.
5. Liquor Liability Insurance
If your convenience store sells alcoholic beverages, you may need liquor liability insurance. This coverage protects your business from legal and financial consequences resulting from alcohol-related incidents, such as property damage or personal injury caused by intoxicated customers.
Liquor liability insurance prices vary depending on the percentage of your sales generated from liquor — so, as a c-store, your costs will likely be lower than, say, a bar. The cost of liquor liability can range from $200 to $2,000 for a small bar, so your total costs will likely stay on the lower side of that range.
6. Cyber Liability Insurance
Last but not least, as a convenience store owner, you will likely rely on technology, such as a POS system, to manage your day-to-day operations. Cyber liability insurance protects your business from financial losses resulting from data breaches, cyberattacks, and other technology-related incidents. The average annual premium for personal cyber insurance is between $300 and $1,200.
C-Store Insurance and Your Small Business
Choosing the right insurance coverage for your convenience store is crucial in protecting your investment and ensuring long-term success. By considering the types of insurance mentioned above and investing in a reliable POS solution like C-Store POS, you can effectively manage your business and mitigate potential risks.
Consult with an insurance professional to assess your specific needs and tailor a comprehensive insurance package for your convenience store. And, if you’re interested in optimizing performances for the rest of your c-store’s operations, schedule a free demo with our team today.
