Convenience Store Insurance

Convenience Store Insurance

Whether you own a small general store or a chain of high-profile convenience stores, protect your business with convenience store insurance.

Zensurance - Convenience Store Owner

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Insurance for convenience stores

As a convenience store owner, you’re probably aware there are a lot of risks that come with your business venture. The number of people entering your store, the products you sell and the equipment you use all pose many liabilities. For example, a slip-and-fall that severely injures a customer or a breakdown of your refrigeration system that spoils a significant portion of your inventory could put you out of business overnight without the right insurance coverage.

Zensurance can help you find the best insurance coverage for your convenience store at competitive rates.

Insurance for convenience stores covers the generic and specialized risks associated with operating a convenience store or a chain of convenience stores. With a specialized policy package, you’ll typically be covered for specific liable events and damage or loss to your business property.

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fresh ground beef but becomes severely ill – upon inspection of the package, it turns out the ground beef was five days out-of-date when it was sold. Your customer sues, alleging your negligence in removing out-of-date products made them severely ill.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.

The cost of insurance will vary as convenience stores come in all sizes, and each business sells various products and services. These factors, and others, can influence the cost of a convenience store insurance policy.

Here are some of the main components taken into consideration when insurers determine your policy’s cost: 

  • Years of experience
  • Services and products available
  • Business size and location
  • Annual and projected gross revenue
  • Number of employees

Convenience stores are susceptible to many risks, partly due to the amount of customer foot traffic and the variety of services and products offered. It’s important that convenience store owners protect their ventures with a convenience store insurance package.  

Getting insured is quick and easy!

Complete our 5-minute online application for a free convenience store insurance quote.

Common claims scenarios

canned beans at convenience store

Problem: A customer trips over a can of beans that rolled into the middle of the aisle. They fracture their wrist in the fall.

Outcome: Your commercial general liability insurance could cover their medical expenses.

ice cream at general store

Problem: The motor burns out on your ice cream freezer. You must throw out your recently stocked ice cream options.

Outcome: Your equipment breakdown insurance may cover the cost to repair the unit’s motor and the replace the spoiled food.

customers eating pre-made sandwich

Problem: A customer becomes severely ill after eating a pre-made sandwich from your convenience store. They alleged you failed to keep the food chilled to a safe temperature and take you to court.

Outcome: Your product liability insurance may cover the customer’s medical fees, your legal fees, and other associated costs.

Frequently asked questions

Do I need additional coverage if I provide delivery services?

Yes, if you’re using a vehicle for business, you’ll need a commercial auto insurance policy. This coverage can protect you against third-party liability costs and the costs of physical damage to your vehicle.

Do I need insurance if I’m a part of a franchise?

Generally speaking, yes. Franchises often require a franchisee to get an insurance policy that protects them at the store level. Check with your franchise to learn about the required insurance and minimum limits.

If I own multiple convenience stores across Canada, will my policy cover all locations?

Yes, you can be covered for all locations that are a part of your business. Ensure you’re covered adequately by disclosing the full variety of your offerings (e.g. say you sell fireworks at a single location – you may need to provide that information in your quote).

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Ready to start? Let’s get a quote!

Getting insurance for your convenience store has never been easier. Get a free quote in a few clicks by filling out a simple online application form.

Have a few questions? No problem! During the application process, you can live chat with one of our licensed brokers about your insurance needs.