What You Need to Know About Convenience Store Insurance

Owning a convenience store can be a great business for the right person. You can be your own boss, set your own hours, choose what you want to sell, and so much more. But as with any business, owning a convenience store comes with unique risks and liabilities you need to protect yourself and your business against. 

Many individuals and families operate convenience stores, so they rely on their success to earn a livelihood. Yet unexpected events can happen at any time, damaging or completely destroying your convenience store — meaning you are only one hefty financial loss away from losing your livelihood. 

Insurance Coverage Options

Every convenience store owner should have business insurance. Whether you own one convenience store or an entire chain, you deserve to know that your business is protected. Having comprehensive convenience store insurance is one way to guarantee financial protection from the unexpected.

We also understand that insurance plans can be expensive. That’s why Insurance Hero makes finding convenience store insurance in Ontario easy and painless. We use our expert knowledge and understanding of insurance to ensure you get the insurance you need at the most affordable rates possible, saving you both time and money.

What is Convenience Store Insurance?

Convenience store insurance is a type of business insurance tailored specifically to convenience stores and their owners because managing a convenience store is a risky and competitive investment. It’s also costly as unexpected events and variables regularly threaten damages and financial losses to the store. Not to mention the costs and risks of operating a whole chain of convenience stores, let alone just one.

What Risks Do Convenience Stores Face?

Convenience stores face a wide variety of risks in their day-to-day operation, including the following:

  • Workplace safety hazards (e.g., slips, trips, falls, heavy lifting, robberies, violence)
  • Food safety (e.g., expired food, improper cold and hot holding, potential contamination)
  • Employee behaviour (e.g., harassment, discrimination, embezzlement)
  • Illegal sales (e.g., underage selling of tobacco and lottery tickets)
  • Consumer data (e.g., credit card fraud, data breaches and hacking) 
  • Consumer theft (e.g., shoplifting, deception)

What does Convenience Store Insurance Cover?

Commercial General Liability Insurance

Commercial general liability protects you, your business and your employees from legal liability against third-party bodily injury or property damage claims that occurred while a customer was at your store. It covers the costs of medical bills, legal fees, and repairs or replacements. This insurance policy also protects you should the above occur on your company’s premises or any advertising and reputational injuries (e.g., slander, libel, copyright infringement).

Commercial Property Insurance

Commercial property insurance protects your convenience store and the contents inside (e.g., equipment, inventory, etc.) by covering the financial loss from such perils as:

  • Property damage due to natural disasters, flood, fire, vandalism or theft.
  • Property damage or theft of electronics, equipment, company documents or employees’ personal belongings.
  • Inventory theft by employees.

Commercial property insurance can also include business interruption, which protects your business should you be unable to work due to an illness or injury and have to shut it down temporarily. This helps offset ongoing costs from income losses, such as bills, employee wages, etc.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is essential for any business offering a service. It protects your business against claims of misconduct, negligence, failure to deliver a service or inadequate work. Professional liability covers:

  • Errors, mistakes and oversights
  • Failure to meet deadlines
  • Failure to deliver your product/service as advertised
  • Professional negligence
  • Failure to meet a standard of care
  • Breach of contract

Product (Inventory) Liability Insurance

As a convenience store owner, your entire business is built on selling products to customers. Product liability insurance protects you against claims of bodily injury or property damage due to a product you distribute or sell. Product liability primarily covers damages due to product defects.

Cyber Insurance

Cyber and privacy liability insurance protects your business by covering damages and legal claims if your customers’ personal information (such as debit and credit cards) is leaked or stolen electronically due to a data breach, ransom attack or theft. It can also cover the costs of any necessary network repairs after a breach or ransom attack.

What other coverages should convenience store owners consider adding to their insurance policy?

Fidelity Insurance

Fidelity insurance protects business owners in the event of loss of funds due to fraud or theft. It covers events as simple as an employee stealing store inventory or cash from a register to as complex as a bookkeeper who has been quietly stealing money from the business over several years. This policy takes effect if the loss of funds was a direct cause of the following:

  • Internal theft
  • Forgery
  • Counterfeiting
  • Impersonation 

Equipment Breakdown Insurance

Equipment breakdown insurance covers financial costs for equipment that need repairs or to be replaced due to internal damage. While you have some coverage for external event damage under commercial property insurance, this policy covers internal damages, such as power surges, motor burnout, electrical shorts, operator errors and mechanical breakdowns. It covers a broad range of equipment that is crucial to operating your business, including the following:

  • Cash registers
  • Commercial display freezers and refrigerators
  • Heating and cooling systems
  • Electric power distribution systems
  • Computers

Commercial Auto Insurance

If you use your vehicle to carry products or equipment needed to stock or maintain your store, you should consider getting commercial auto insurance. While you likely have personal auto insurance already, if you get into an accident while on your way to one of your rental properties, your claim may be denied since you were using your vehicle for work. Commercial auto insurance includes the following:

  • Third-party liability
  • Accident benefits
  • Uninsured automobile coverage
  • Direct compensation-property damage

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Is Convenience Store Insurance mandatory?

Convenience store insurance isn’t mandatory, but it is certainly dangerous to risk operating without it. If you are suddenly faced with a lawsuit, could you afford the legal fees? Or the medical bills for a customer that injures themselves in your store? Convenience store insurance can save you and your business from going under.

Get a Convenience Store Insurance Quote Today

For reliable, affordable Ontario convenience store insurance, please request a quote online or call us at 1-855-777-4376. Our team of insurance heroes is happy to answer any questions you have!