Running a convenience mart or small grocery store can be a rewarding but demanding business. You're likely to be open for extended hours and offer a wide range of products — from perishables to lottery tickets — so you need a business insurance policy that's as inclusive as your store.
A customized business insurance policy can help protect you against a variety of risks ranging from food spoilage to theft, and much more.
Here are some key types of coverage you might want to consider for your convenience mart or small grocery store:
Business property coverage: This important coverage helps protect both your shop's physical structure, as well as its contents, if they're destroyed or damaged by a covered peril, according to the Insurance Information Institute (III). Covered shop contents might include retail products, shelving, cash registers and more. The particular policy you choose will define covered perils, but common examples include fire, theft and vandalism. This coverage could help protect you if, for example, your shop is robbed or a vandal breaks one of your store's windows.
General liability coverage: This type of coverage can help protect your business if you are found legally responsible for injuries or accidents at your store, or negligence claims, according to the Small Business Administration (SBA). For example, if a product rack toppled and injured a customer, this coverage could help pay for the customer's medical expenses if you're found liable. Or, if a supplier slipped on wet floor near your produce section and sued you for negligence, this insurance could help pay your legal costs (up to your policy's limits) if you're found responsible.
Business interruption coverage: Your livelihood depends on your store being open and accessible to your customers. If an unexpected event like a fire forced you to close your shop, this insurance could help replace your business income (including employee payroll costs) for an amount of time specified in your policy, according to the III. Be sure to read your policy carefully, as the III says many require a waiting period (often 48 hours) before this coverage kicks in. Your store's records of past profits, as well as your policy's specific limits, determine your insurance payouts.
Equipment breakdown coverage: According to the III, this coverage can help pay to repair your key equipment, such as refrigeration units or cash registers, as well as provide rental replacements. Equipment breakdown coverage could be an important consideration for your store, since your business income could take a serious hit if, for example, your refrigerators shorted out during a heat wave.
A few additional coverages you might want to consider for your store:
- Money and securities coverage: This additional insurance covers the aforementioned financial items while in your store, at the bank, stored at your or an employee's home, or while they're in transit between any of these places.
- Employment practices liability coverage: If a current or previous worker sues you (for harassment or discrimination, for example) and you're found liable, this insurance could help cover damages and your legal costs.
- Data compromise coverage: This important coverage can help protect you against data breaches that expose customers' sensitive information, such as credit card numbers. Data compromise coverage can help pay expenses for notifying customers, providing credit monitoring and repairing your store's damaged data systems.
- Business auto coverage: If your shop's vehicles are stolen, vandalized, or involved in an accident, this coverage can help pay for damage, loss, and liability claims.
For help choosing the right business insurance policy for your convenience mart or small grocery store, get in touch with a local business insurance agent