There are more than 150,000 convenience stores in the US. These stores are thriving, with average sales of about $500 billion a year. If you are the owner of this type of business in Arizona, you can protect the investment you have made in it by purchasing suitable convenience store insurance.
When you are looking for the best coverage for your convenience store, a local independent insurance agent can help. These agents can answer your insurance-related questions and can shop around to find you great coverage at a competitive price. Contact an insurance agent near you to get started.
What Is Convenience Store Insurance and Why Is It Important in Arizona?
Convenience store insurance is a general term used to describe a business owners policy (BOP) or a business insurance policy package that has been customized to meet the specific coverage needs of corner stores, convenience stores, and gas stations.
Companies in Arizona collect nearly $7 billion a year in business insurance claims. That’s a lot of things going wrong in this state. Will your store be covered if disaster strikes? A local independent agent can help you be certain that it is.
How Much Does Convenience Store Insurance Cost in Arizona?
Rates can vary from one convenience store to the next. Therefore, the only way to find out how much coverage will cost for your particular store is by contacting a few insurance providers and requesting customized quotes.
Here are some of the factors that can influence your rates.
- The size of your store in square feet
- Your store’s expected annual revenues
- The estimated value of your store’s property
- The number of employees you have
- The age and condition of your store's mechanical equipment
- The crime rate and weather risks where your store is located
- The coverage options you want to include in your policy
Every insurance company has its own way of assessing risk and calculating costs. It’s therefore likely that the quotes you receive from the various insurers you contact will be different. That is why it is beneficial to compare a few rates before you decide which insurance company to buy your coverage from.
What Does a Convenience Store Business Owners Policy (BOP) Cover?
If you own a small convenience store, the most cost-effective way to purchase coverage is by buying a BOP and then supplementing it with additional commercial insurance products as needed.
If you own a larger store, or a chain of stores, you will probably be better off going with a traditional business insurance policy package.
A BOP will provide you with three types of coverage.
- Commercial property insurance: This can cover your business-owned property such as inventory, cash registers, gas pumps, and outdoor signs if any of this property is lost or damaged by a covered event like:
- Severe storms, including thunderstorms, windstorms, and monsoons (but not the flooding that may accompany them)
- Fires and explosions, including accidental fires, lightning-induced fires, and wildfires
- Property crimes
- Commercial general liability insurance (CGL): This is designed to cover your convenience store against many of the most common liability risks businesses face. Some of the coverage it provides includes:
- Premises liability insurance: This can cover third-party injuries that occur on your business property, such as if a customer or delivery person slips on a wet floor inside your store.
- Product liability insurance: This can cover third-party injuries or illnesses caused by a product sold in your store, such as if hot dogs or sandwiches sold in your store are somehow contaminated and your customers get sick.
- Business interruption insurance: This can provide your convenience store with a continuation of income if it must shut down for an extended time while repairs are made following a covered event like a fire or a tornado.
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What Additional Liability Insurance Products Can Help Convenience Stores in Arizona?
Business liability insurance is one of the most important components of any business insurance policy. It can cover expenses like legal fees, settlements, and judgements if your convenience store is sued for a covered event.
An estimated 80% of all convenience stores in the US include gas pumps. This creates an added hazard that makes having sufficient liability insurance coverage even more important.
Your business owners policy provides you with commercial general liability insurance, but CGL isn’t enough to cover against all of your liability exposures. You may therefore want to consider purchasing additional policies such as the following.
- Employment practices liability insurance: This can cover your business if a current or former employee makes an accusation of illegal employment practices like discrimination, harassment, retaliation, or wrongful termination.
- Cyber liability insurance: This can provide coverage if criminals successfully install credit card skimmers on your gas pumps and your customers become victims of theft or fraud.
- Liquor liability insurance: If your convenience store carries alcoholic beverages, Arizona law requires you to have liquor liability insurance. This coverage is important because if your store sells alcohol to a minor or to a visibly intoxicated adult, and that person then causes injuries or property damage to others while drunk, the injured parties can sue your store.
- Commercial umbrella insurance: This can significantly boost the coverage limits of your store’s general liability coverage.
Having the right liability insurance products in place can save your convenience store thousands of dollars if it ends up on the wrong end of a liability lawsuit.
What Additional Property Insurance Products Are a Good Idea for Arizona Convenience Stores?
The commercial property insurance included in a BOP provides a lot of coverage. However, as with any kind of insurance, it has some limitations. You may therefore want to supplement it with additional policies such as the following.
- Equipment breakdown insurance: This can cover the cost to repair or replace your convenience store’s well-maintained essential machinery (such as refrigerators and gas pumps) if they break down or malfunction.
- Spoiled food insurance: This can cover your losses if perishable food products are spoiled due to problems with your store’s refrigeration units. This coverage is often included in your equipment breakdown insurance.
- Commercial flood insurance: This can cover damage your store may sustain in a flood. This supplemental insurance is important because commercial property insurance specifically excludes coverage for flood damage, and floods pose a very real risk during Monsoon Season.
- Commercial earthquake insurance: Some parts of Arizona have a moderate risk of earthquake damage, but this, too, is not covered by commercial property insurance. A good earthquake insurance policy can cover your store’s property if it is damaged by a seismic event.
You will want to be sure that you are purchasing sufficient amounts of the right insurance products so that all of your convenience store’s valuable property is suitably covered.
What Is Workers’ Compensation Insurance and Is It Required for Convenience Stores in Arizona?
Workers’ compensation insurance is designed to cover your employees’ medical treatments and lost wages if they are injured on the job.
This insurance creates a safety net for your employees so they do not need to worry about incurring financial losses in they are hurt at work. It has the added benefit of protecting your business from potential liability lawsuits related to these injures.
If you employ at least one person at your convenience store, you are required by Arizona state law to carry workers’ compensation insurance. You need to cover all of your employees including part-time workers, family members, and minors.
Exceptions are made for business partners and sole proprietors, but you are able to purchase coverage for these individuals if you want to.
In this state, workers’ compensation rates and compliance are overseen by the Industrial Commission of Arizona. The more likely it is that your employees will suffer a significant injury while working, the more your policy will cost.
Independent Agents in Arizona Can Help You Find the Best Convenience Store Insurance
If you are looking for great coverage for your Arizona convenience store, you can turn to a local independent agent for help. These agents can save you time and money by working with several different insurance providers to find you the best available coverage at the most competitive price.
There are more than 400 independent agents with offices in the Grand Canyon State. Contact an insurance agent near you to schedule an obligation-free consultation. You will soon discover how easy it can be to start comparing customized convenience store insurance quotes.
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