How much is convenience store insurance?

Convenience stores may be eligible for a business owner’s policy (BOP), which has an average cost of $184 per month or $2,208 annually.

A business owner's policy bundles general liability coverage with commercial property insurance at a lower rate than buying these policies separately. It protects against the most common liability and property lawsuits, and helps your convenience store recover from a fire, burglary, or other property loss.

This is the average business owner's policy for convenience stores that buy from TechInsurance:

Premium: $184 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

For example, this policy would help pay for employee wages and the cost of renting a temporary storefront if your convenience store is closed for renovation after a fire. Not only will this coverage allow you to keep serving customers, but it can also help you avoid losses related to destroyed inventory.

You can also expand your policy with additional coverage by adding endorsements based on your needs, such as business interruption insurance or equipment breakdown coverage.

The cost of a business owner's policy mostly depends on the value of your business property. Other factors, such as your business income and industry risks, can also affect your premium.

General liability insurance for convenience stores costs an average of $71 per month, or $857 per year.

This type of insurance covers accidental property damage and customer injuries. It usually includes product liability insurance, which protects your business against legal expenses if a customer sues over harm caused by a product. General liability insurance also pays for lawsuits related to advertising injuries, such as defamation or copyright infringement.

For example, suppose a customer slips in your convenience store and suffers a bodily injury which results in extensive medical costs. They proceed to sue over the lack of proper signage, such as a wet floor sign. Your general liability policy would cover medical expenses and legal costs.

Below is the average general liability policy for convenience stores that buy from TechInsurance:

Premium: $71 per month
Policy limits: $1 million per occurrence; $2 million aggregate

You might need general liability coverage to rent a storefront, sign a contract, or get a business loan. It shows your landlord and partners that they're protected against financial losses from the most common risks.

The cost of general liability insurance depends on numerous factors, including the type of products you sell, the policy limits and deductible you choose, the amount of foot traffic at your shop, and the number of employees you have.

Convenience stores spend an average of $82 per month, or $979 annually, on workers' compensation insurance.

Workers' comp pays for medical expenses and disability benefits in the event of an employee injury. For example, if a worker trips and sustains an injury while manning the cash register, this policy would pay for their medical treatment and provide partial wages during their recovery.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require retailers to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation mostly depends on the number of employees you have and the type of work they do. It's often less expensive for businesses in states that have lower healthcare costs.

Retail businesses, including convenience stores, pay an average of $59 per month, or $707 per year, for commercial umbrella insurance.

This policy helps cover your convenience store if the limits of your general liability, employer's liability, or commercial auto insurance aren't enough to cover an incident.

Umbrella coverage boosts your underlying insurance policies in $1 million increments. You might need it to sign a contract with a shipper or supplier who requires higher than average liability limits.

Even when it's not required, you should consider carrying this type of retail business insurance coverage. It helps protect against the most expensive claims, such as multi-vehicle accidents or products that harm many customers.

The cost of umbrella insurance depends on the amount of coverage you buy, along with the same factors that affect the cost of the underlying policies.

Retail businesses, including convenience stores, pay an average of $171 per month, or $2,054 per year, for commercial auto insurance.

If your company-owned vehicle is involved in an accident, this policy would help pay for any damage you cause. It would also cover your legal fees if you're sued.

You can also buy coverage for other risks. For instance, collision insurance pays for repairs if your vehicle is damaged in a collision, while comprehensive insurance covers damage from other causes, such as hail, theft, or vandalism.

Almost every state requires this coverage for businesses that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto policies can vary considerably. Some of the most important factors are your employees' driving records, the policy's limits and deductible, exclusions, the number of vehicles you own, and the coverage options you choose.