How Much Does Grocery Store Insurance Cost?

U.S. grocery store businesses can expect to pay $480 annually for business insurance, averaging $40 per month. The primary cost drivers include the store’s location, insurance coverage limits, number of employees, annual revenue, the value of refrigeration and other essential equipment, as well as the range of services offered, such as delivery, catering, or in-store dining.

How Much Does Grocery Store Insurance Cost?

The average grocery store in the U.S. pays around $500 to $1,500 per year for a full business insurance package, which breaks down to roughly $40 to $125 per month. However, this is just a rough estimate and the real cost can change a lot depending on your store’s specific situation and risks. 

Grocery store insurance helps cover unexpected costs from things like accidents, theft, or property damage. The cost of your grocery store insurance can depend on various factors, such as your store location, the size of your store, how many employees you have, and what products you sell. Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Vehicle usage (affects commercial auto insurance)
• Business interruption coverage and other add-ons

Understanding these elements can help you figure out what kind of insurance you need and plan for the actual cost of protecting your grocery store. 

Average Grocery Store Insurance Costs For Coverage Types

Every grocery store faces risks everyday. From slips and falls to spoiled products. Having the right insurance can help protect your store, customers and employees from costly problems. 

Here’s a closer look at the major coverages most grocery store businesses need.

• General liability insurance: $40 per month
• Business owner’s policy: $80 per month
• Workers’ compensation insurance: $169 per month
• Commercial auto insurance: $165 per month
• Commercial umbrella insurance: $56 per month

General Liability Insurance

The average cost of general liability insurance for a grocery store business is about $40 per month.

General liability insurance will help protect your grocery store if a customer gets hurt or their property is damaged. For example, if a customer slips and falls on a wet floor in your grocery store and injures their back, general liability insurance can help cover their medical expenses. 

Several factors impact the cost of general liability insurance for a grocery store, such as claims history, number of customers, store size, location, and coverage limits. 

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates reflect average annual premiums for grocery stores of varying sizes, incorporating typical exposures such as customer slip-and-fall incidents, foodborne illness claims, and property damage. Rates are influenced by local risk factors, store size, employee count, and coverage limits. Actual premiums will vary depending on business-specific underwriting criteria.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $80 per month for a grocery store business.

A BOP is a simple and affordable way to package important coverages into one plan for a grocery store business.  It usually includes general liability insurance and business interruption insurance. 

For example, if a customer slips on a spilled drink in one of the aisles and injures their wrist, the general liability portion of the BOP can help cover their medical bills and any legal costs if they file a lawsuit.

At the same time, if a refrigerator malfunctions overnight and spoils thousands of dollars’ worth of perishable goods, the commercial property portion can help cover the cost of replacing the damaged inventory.

The main factors that impact the cost of BOP are the coverage limits, amount of foot traffic, size of your business, and any endorsements you may add. 

Policy limits: $1 million per occurrence and $2 million aggregate. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates reflect average Business Owner’s Policy (BOP) premiums for grocery stores, combining general liability and commercial property coverage. Figures account for typical risk exposures such as customer foot traffic, food spoilage, and equipment breakdowns. Actual premiums will vary depending on store size, location, coverage limits, property value, and claims history.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a grocery store business is around $169 per month.

Workers’ comp helps protect both your grocery store and your employees if someone gets hurt. For example, 

If an employee strains their back while lifting heavy boxes and injures their hip, workers’ comp would help cover their hospital and physical therapy bills. It would also provide a portion of their wages while they recover and are unable to work.

The factors that impact the cost include the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Every state has its own rules for how much coverage workers comp provides, but it usually pays for medical expenses and part of the employee’s lost wages. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Workers’ Compensation premiums for grocery store businesses, factoring in state-specific base rates, employee classifications, and payroll ranges typical of both small independent grocers and larger regional chains. Actual premiums will vary depending on your store’s size, claims history, number of employees, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a grocery store business is about $165 per month.

Commercial auto insurance protects the vehicles your grocery store uses for business purposes. For example, if your grocery store offers delivery services and one of your delivery vans is involved in an accident while transporting customer orders, commercial auto insurance can help cover the cost of vehicle repairs, and third-party property damage or injury claims resulting from the incident.

Several factors impact the cost of commercial auto insurance including coverage limits, your past claims, how much your work vehicles are worth, and the driving records of anyone who drives them. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates reflect average annual premiums for grocery store businesses operating commercial vehicles such as delivery vans, box trucks, and utility vehicles. Figures incorporate blended rates for both small and large operations, accounting for regional risk factors, vehicle usage, and liability coverage levels. Actual premiums will vary based on fleet size, claims history, location, and insurer underwriting practices.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a grocery store business is $56 per month.

Commercial umbrella insurance provides extra protection for your grocery store beyond the limits of your other policies, like general liability, commercial auto, or workers’ compensation. If a claim costs more than your regular insurance covers, umbrella insurance helps pay the extra amount. 

For example, If a customer suffers a serious injury after slipping on a wet floor in your store and their medical bills and legal settlement exceed the limits of your general liability policy, umbrella insurance would help cover the remaining costs, protecting your business from paying out of pocket for the excess amount.

The cost depends on the risks involved and how much coverage you need. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates reflect average annual premiums for Commercial Umbrella insurance tailored to grocery store operations, based on data from both small and large insurance agencies. Factors influencing cost include business size, location-specific liability risks, coverage limits, and existing underlying policies. Actual premiums will vary depending on your store’s unique profile and insurer underwriting criteria.

Grocery Store Business Insurance Costs By Provider

Grocery Store business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates reflect average annual premiums for comprehensive grocery store business insurance, including general liability, property coverage, and business interruption protection. Figures are based on aggregated data from both small and large insurance agencies. Actual premiums will vary depending on store size, location, risk profile, and selected coverage limits.

What Factors Impact Your Grocery Store Insurance Costs?

When it comes to protecting your grocery store, insurance is an important part of managing risk. However, the cost of grocery store insurance can vary depending on several factors. Knowing what drives these costs can help you choose the right coverage. 

Store Layout & Size

The size of your grocery store has a big impact on insurance costs. Bigger stores normally have more workers, products, and customers, which means higher chances of damage or accidents. Similarly, the layout also contributes. Having bright lightning or wide aisles can make the store safer and help reduce insurance costs. 

Types of Products Sold

 This factor also plays an important role in determining costs. Stores that sell seafood, fresh meat, or alcohol often pay more for insurance because the items can cause contamination, or cause liability problems. Stores that sell non-perishable or packaged foods usually pay less since the products are easy to manage. 

Location

It’s no surprise that where your store is located affects your insurance rates. Stores in areas with frequent natural disasters or higher crime rates often face higher premiums. On the other hand, being in a neighborhood that is secure can help cut insurance costs. 

Safety & Security Measures

Taking safety measures like fire alarms, surveillance cameras, and employee safety training can all protect your business. The safer your store is, the lower your insurance costs are likely to be. 

How To Lower Your Grocery Store Insurance Costs

Getting insurance for your grocery store holds immense importance, but you don’t have to pay huge sums of money to get one. The good news is there are smart ways to reduce your premiums without losing the protection your business needs. 

1. Keeping A Clean Claims History

Insurance companies view your past claims to decide your rates. Fewer claims show that your store is well-managed, and safe. Avoiding minor incidents, and unnecessary claims can help keep your premiums low. 

2. Compare Rates

 It’s not always a good idea to settle for your first coverage offer. Explore different insurance providers and compare rates before finalizing any. 

3. Bundle Policies

If you combine multiple policies, you might get a discount from your insurance provider. For grocery stores, you can combine general liability, workers compensation, and commercial auto insurance and ask for discounts. 

4. Adjust Coverage Annually Or When Needed

It’s normal that as time passes, your store will go through various changes, for example a decrease in number of employees. It’s important that you review and adjust your coverage accordingly. Removing policies that are no longer needed will help lower your grocery insurance costs.