Convenience Store Business Insurance (2025)

Running a convenience store comes with unexpected risks that can quickly drain your finances. Convenience store business insurance acts as a financial safety net, covering these costly surprises so you don’t have to pay out of pocket. It protects your hard-earned profits and keeps your business running smoothly.

Why Do Convenience Stores Need Insurance?

Running a convenience store means dealing with a lot of daily risks. For example, a customer might slip on a wet floor or get hurt if something falls off a shelf. If you don’t have insurance, you could end up paying for medical bills, repairs, or even legal costs, all out of your own pocket.

There are other risks too, like someone stealing from your store, damaging your windows, or a cooler breaking down and ruining your food stock. These problems can be expensive to fix. With the right insurance, your policy can help cover the costs.

Whether you run a small corner shop or a larger 24-hour store, insurance helps you stay protected and worry less. While insurance does cost money each month or year, it can save you much more if something goes wrong.

What Insurance Do Convenience Stores Need?

Owning a convenience store might seem simple, but it comes with several risks that can seriously impact your business. You’re dealing with daily foot traffic, cash transactions, valuable inventory, and equipment that needs to run smoothly. Accidents, theft, or equipment failures can happen at any time, often when you least expect them.

To protect yourself and your business, here’s a breakdown of the most important insurance policies to consider.

General Liability Insurance

What it is: This is the foundational insurance policy for most small businesses. It protects you from third-party claims of bodily injury, property damage, and personal injury.

What it covers: If you accidentally damage a client’s property or someone gets hurt because of your work, general liability pays for legal fees, repairs, or medical bills.

Example: A customer slips on a recently mopped floor in your convenience store and injures their back. They file a claim for medical expenses and lost wages. Without insurance, you’d have to pay those costs yourself. But with general liability insurance, your policy can cover the customer’s medical bills, any legal fees if they sue, and even potential settlement costs.

Workers’ Compensation Insurance

What it is: This policy covers your employees if they get injured or become ill as a result of their job.

What it covers: Medical bills, lost wages, rehabilitation, and even death benefits. It’s also required by law in most states if you have employees.

Example: One of your employees slips on a wet floor while restocking shelves and breaks their wrist. Workers’ compensation insurance covers their emergency room visit, medical treatment, and provides wage replacement while they recover and can’t work.

Workers’ compensation insurance is required for convenience stores with employees in almost every state.

Commercial Auto Insurance

What it is: If you or your employees drive for business purposes, personal auto insurance likely won’t cover accidents. Commercial auto fills that gap.

What it covers: Vehicle damage, injuries, and liability if you’re involved in an accident while driving for work.

Example: One of your employees is making a delivery or picking up supplies in the company vehicle and accidentally rear-ends another car. Commercial auto insurance covers the damage to both vehicles, as well as any medical costs for injuries.

Convenience stores pay an average of $164 per month, or $1,968 per year, for commercial auto insurance.

Business Owner’s Policy (BOP)

What it is: A BOP bundles general liability and commercial property insurance into one policy, often at a lower cost than buying them separately.

What it covers: Property damage to your business location or equipment, along with liability protection.

Example: A power outage causes your refrigerators and freezers to stop working overnight, spoiling thousands of dollars’ worth of perishable goods. A business owner’s policy (BOP) can help cover the cost of the spoiled inventory and assist with lost income if the store has to close temporarily for repairs.

Commercial Umbrella Insurance

What it is: Commercial umbrella insurance provides extra liability coverage beyond the limits of your existing policies, like general liability, auto liability, or employer’s liability. It acts as a financial safety net when a major claim exceeds the limits of your primary coverage.

What it covers: Large lawsuits or claims involving bodily injury, property damage, or legal fees that go beyond your standard insurance limits.

Example: An employee accidentally causes a gas leak while repairing equipment, leading to damage in a neighboring business. The resulting property damage and lawsuit exceed your general liability coverage limits. Commercial umbrella insurance kicks in to cover the extra costs, including legal fees and settlement amounts, protecting your store from large financial losses.

Cheapest Business Insurance For Convenience Stores

The cheapest option for overall business insurance is often NEXT Insurance, with average annual costs around $437.

Note: These estimates reflect starting prices for a basic General Liability policy, which is the most common entry-level business insurance. Actual premiums will vary based on your store’s location, revenue, claims history, and coverage limits.

Cheapest Convenience Store General Liability Insurance

The cheapest option for General Liability insurance is offered by NEXT Insurance, with policies starting at $446 per year.

Note: These estimates are for a standard $1 million / $2 million General Liability policy. Actual costs will vary significantly based on your store’s foot traffic, location, services (like food prep or gas pumps), and whether you sell age-restricted products.

Cheapest Convenience Store Business Owner’s Policy

The cheapest option for a Business Owner’s Policy (BOP) is NEXT Insurance, with average annual premiums around $1,172.

Note: A BOP is often required for stores that rent or own their space, as it includes Commercial Property insurance for the building, equipment (coolers, POS systems), and inventory. Prices will vary based on the total value of your property, your inventory size, and any added coverages like Spoilage or Equipment Breakdown.

How Much Does Convenience Store Insurance Cost?

Insurance for a convenience store usually costs between $700 and $2,500 per year for basic coverage. This covers things like accidents or injuries that happen in your store. If you have a small store with few risks, your insurance will likely be cheaper. But if your store is open late, sells alcohol or tobacco, or has more employees, your costs can go up, sometimes over $3,000 a year if you need more coverage like workers’ comp or property insurance.

The price of your business insurance depends on many things. These include where your store is located, how many employees you have, what you sell, and if you’ve had any past claims. Stores with extra safety features, like cameras or alarm systems, may get lower rates. If you have expensive equipment or a lot of inventory, you might also pay more to make sure it’s fully covered.

While it might seem like a good idea to pick the cheapest insurance, it’s important to make sure your store is really protected. A good policy can help you recover after things like theft, fire, or a customer injury.

Note: These estimates are based on national averages for a small- to medium-sized convenience store. The Business Owner’s Policy (BOP) combines General Liability and Commercial Property insurance. Spoilage coverage is often added as an endorsement to a BOP or Commercial Property policy. Actual premiums will vary significantly based on your store’s specific location, annual revenue, total payroll, value of building and equipment, claims history, and whether you sell high-risk items like liquor or prepared foods.

How Is Your Convenience Store Insurance Cost Calculated?

Insurance underwriters calculate your convenience store insurance premium based on several important risk factors unique to your business. One of the main factors is the size and type of your store. A small, neighborhood shop will generally pay less than a larger store with more employees, longer hours, or multiple locations.

What you sell also affects your rate. Stores that offer alcohol, tobacco, fuel, or lottery tickets may face higher premiums due to increased risks. Your location plays a big role as well, insurance costs can vary based on your city, neighborhood, or even ZIP code, especially if the area has higher crime rates or a history of natural disasters.

Other things that impact your premium include your claims history (past insurance claims can raise your rate), the value of your inventory and equipment, and whether you own or lease any business vehicles. The amount and types of coverage you choose also matter.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.