In addition to large chain stores, there are several small, family-owned grocery stores in Arizona. In addition to making food and other necessities available to their communities, these stores play an important role in the local economy. Grocery store insurance helps these small supermarkets remain profitable in times of trouble.
If you are the proud owner of a grocery store, an independent insurance agent can help you find great coverage for your business at a competitive price. Contact an insurance agent near you to learn more.
What Could Go Wrong in a Grocery Store?
Disasters don’t happen frequently at grocery stores, but they do occur. Consider how your grocery store business would handle the associated expenses if these incidents were to happen.
- A customer in your grocery store slips on a wet floor and requires surgery for a broken wrist.
- A windstorm blows down an outdoor sign and it damages cars in your parking lot.
- An employee claims that your store has failed to promote him due to discrimination and files a lawsuit.
- An extended power outage causes several thousands of dollars worth of perishable items to go bad and they must be thrown out.
These are just a few of the potential hazards that a good grocery store insurance policy can protect your business against.
What Is Arizona Grocery Store Insurance?
Grocery store insurance is simply a business insurance policy package that has been customized to meet the specific coverage needs of grocery stores.
Local independent insurance agents can help you review your store’s various exposures and can recommend the right policies to mitigate each of them. That way, your grocery store is not left with any unintended coverage gaps.
How Much Does Grocery Store Insurance Cost in Arizona?
The cost insurance can vary significantly from one grocery store to the next. While some may spend a few hundred a month, others may spend thousands. Some of the many factors that can influence your rates include the following.
- The size of your grocery store and its expected annual revenues
- The crime rate and weather risks in the ZIP code where your store is located
- Whether you own or rent the building in which your store is housed
- The value of your grocery store’s assets, including inventory, shelving, shopping carts, cash registers, signs, and other property
- The number of workers your store employs
- The coverage options you want to include in your policy
- The size of your deductible
Every insurance company has its own way of assessing risk and calculating rates. That is why it pays to request quotes from a few competing insurance providers before deciding on which policy to purchase.
Independent insurance agents make comparison shopping easy by obtaining customized quotes on your behalf.
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What Does Arizona Grocery Store Insurance Cover?
Your grocery store insurance can cover as much or as little as you want. When you build your business insurance policy package, you can choose the policies and coverage options you feel are necessary to cover your Arizona store.
Local independent agents make shopping for coverage easy by helping you determine which policies are a good fit for your particular grocery store. You will want to purchase sufficient liability coverage, property coverage, and supplemental coverage.
Liability Insurance to Cover Your Arizona Grocery Store
Business liability insurance can cover court costs, legal fees, settlements, judgments, and other financial damages if your grocery store is sued for a covered event. There are many different types of liability coverage available. Your insurance agent may recommend the following.
- Premises liability insurance: This can cover third-party injuries that occur on your business property, such as if a customer slips on dropped food or a wet floor and gets seriously injured.
- Product liability insurance: This can cover third-party damage if a product you sell in your store causes customers to be sickened or suffer injuries. For instance, this can provide coverage if your store sells food items that are found to be contaminated with E-coli, and your store is named in a liability lawsuit.
- Commercial vehicle liability insurance: If your grocery store provides catering or delivery services, you may have a company-owned vehicle or vehicles. In this case, you would need to cover them with commercial auto insurance. If your employees use their own vehicles to make deliveries, your store can be held liable if they are involved in an accident while doing their jobs. In this case, you would need hired or non-owned auto insurance to be covered.
- Liquor liability insurance: If your grocery store sells alcoholic beverages, there is a chance that it could be held liable for damages or injuries caused by an intoxicated person who acquired the alcohol in your store. Arizona’s dram shop laws allow this to happen if the sale was made to a visibly intoxicated person or to someone under the age of 21. Liquor liability insurance can provide coverage if this happens.
- Druggist liability insurance: If your grocery store includes a pharmacy, you will need to carry this coverage, which is a form of professional liability insurance designed specifically for pharmacists.
- Cyber liability insurance: This is designed to cover associated costs if your grocery store is targeted by cybercriminals and they access customer information such as credit card numbers or personal details that you might keep if your store has a loyalty card system.
Property insurance to cover your Arizona grocery store
You will want to have enough property coverage to enable you to repair or replace damaged business property if your store is damaged by a covered event like a severe storm, theft, or fire. Your agent may discuss the following with you.
- Commercial property insurance: This provides coverage for your business owned property including things like merchandise, inventory, shelving, shopping carts, cash registers, computers, and signs.
- Boiler & machinery insurance: This is specialized coverage for the machinery kept and used in your grocery store. This includes everything from refrigeration units to the meat slicer at the deli counter. If your store experiences machinery breakdown, this insurance can provide coverage for repairs or replacements and can cover the cost to rent comparable machinery while your owned machine is being repaired.
- Spoilage insurance: This is often included under your boiler & machinery insurance coverage. It can compensate you for your losses if perishable items are spoiled due to a breakdown of your cooling systems. It can also provide coverage if a prolonged power outage leads to food spoilage.
Other coverage you may need for your Arizona grocery store
Insurance companies offer additional coverage that may be a good fit for your Arizona grocery store. Your insurance agent may also recommend that you purchase some of all of the following.
- Business interruption insurance: This can provide your grocery store with a continuation of income you must close down for an extended time due to damage caused by a covered event.
- Workers’ compensation insurance: Arizona state law requires you to cover your employees with this insurance. It provides coverage for medical treatment, lost wages, and other expenses related if your workers are injured on the job.
- Flood insurance: Commercial insurance policies specifically exclude coverage for damage caused by floods. If your grocery store is at risk for flooding during monsoon season, your insurance agent can help you supplement your coverage with a commercial flood insurance policy through the National Flood Insurance Program (NFIP).
- Employment practices liability insurance: This can protect your business if a disgruntled employee accuses you of engaging in illegal business practices such as wrongful termination, discrimination, or harassment.
- Employee dishonesty insurance: This is designed to protect your grocery store from financial losses if an employee steals from your business or engages in other illegal behaviors while on the job.
- Umbrella insurance: Because insurance companies impose caps on the amount of liability insurance they are willing to provide, umbrella insurance may be necessary if you feel that you need extra liability coverage in order to adequately protect your grocery store’s finances.
Talk to a local independent agent to learn more about all of the policies that are available for you to include in your grocery store business insurance policy package.
How an Independent Insurance Agent in Arizona Can Help You Find the Best Grocery Store Insurance
If you are looking for the best and most affordable coverage for your grocery store in Arizona, look no further than a local independent agent. In addition to answering your insurance related questions, these agents and can save you time and money by shopping around to find you great coverage at a competitive price.
With more than 400 independent agents in Arizona, it should be easy to set up a one-on-one consultation with an insurance agent near you.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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