Insurance For Convenience Stores In Canada

Convenience Store Insurance In Canada

According to the Financial Post, it’s a tough time to own a convenience store. Competition pops up on every corner and stores rely on customer loyalty to stay in business. But at the same time, owning a convenience store has a lot of perks. You can be your own boss, set your own hours, and earn a very comfortable living all at the same time. For all the freedom and control over your career that you get as business owners, however, protecting your store becomes that much more important to you.

Unexpected events can negatively impact your finances at any time. That’s what makes convenience store insurance an absolute necessity for store owners. Insurance for convenience stores in Canada is important in order for businesses to plan for unexpected circumstances. Every store owner should have insurance. It’s best if you can customize your insurance to your store. Your insurance company should be responsible for helping you keep your doors open in case of liability claims or damages to your commercial property. In this article, you’ll learn the importance of insuring your convenience store business, what types of insurance your store needs and how to get it.

Across Canada, every convenience store is different. For example, Circle K is opening new locations and cornering the convenience store market. In Guelph, Ontario, an ambitious entrepreneur in her 20s can take over a convenience store and try to carve out a specific niche. Meanwhile, Circle K opens a store just 10 minutes down Gordon Street. Each owner needs to foster customer loyalty while protecting themselves from the liabilities and potential losses involved with owning a business. Insurance for convenience stores in Canada is easy to find, as long as you can trust that your insurance company is giving you coverage for any risks you might encounter.

The 3 Reasons Why Every Store Should Have Convenience Store Insurance Coverage

1. Convenience Stores See a Lot of Foot Traffic

Part of the reason why convenience stores are such a lucrative business opportunity is that they’re easily accessible to the general public. On any given day, you could see a commuter buying milk after work or a group of neighborhood kids walking in to buy candy. That foot traffic is a key part of how your store is able to turn a profit. 

With all of those people going in and out of your store, however, there are more opportunities for a customer to slip and fall. It goes without saying that one lawsuit can have a devastating effect on your store’s bottom line. Having your convenience store properly insured allows you to manage these risks with minimal financial fallout.

2. Convenience Stores Sell a Lot of Products

Although most convenience stores don’t carry the same level of inventory as a local supermarket, customers are still usually able to buy common basic goods. While there’s nothing wrong with making it easy for shoppers to grab household items on short notice, in practice, your store is selling a lot of products that you didn’t personally manufacture. 

The Canada Food Inspection Agency deals with roughly 350 food recalls a year. If a product you sold ends up harming a customer, having insurance could make a world of difference.  

3. Your Property Needs Coverage Too

Whenever you’re operating out of a physical building, there’s always a chance that your property may be damaged. And when you’ve got sales to make and customers to see, property damage has the potential to really hamper your ability to do business.

Floods, hail storms, strong winds, or something as simple as a driver taking a wrong turn and hitting your building are all unexpected events that could potentially leave you stuck with hefty expenses that you haven’t planned for. 

If you’re in a position where you’re covering the expenses out of pocket, that can put your company at serious financial risk. Not just in terms of lost revenue but also in terms of replacing your damaged property. Property insurance policies can help you regain your financial and operational footing much more easily. 

What Should Convenience Store Insurance Cover?

At the end of the day, you want your convenience store to be insured under a policy that reflects the realities of the risks you’re up against. To that end, insurance policies you may want to include in your convenience store insurance coverage would be:

  • Slips and Falls: Customers can have unfortunate falls and anytime. But the ice and snow that comes part and parcel with Canadian winters add an extra layer of risk when it comes to maintaining public safety. A commercial general liability coverage plan can help you keep yourself protected at all times. 
  • Fraud and Theft: Convenience store crime is becoming more sophisticated. Beyond the robberies that we’ve all seen before on TV, identity theft, credit card usage, and stolen debit cards can all come back to haunt your bottom line at a convenience store. If you’re taking out an insurance policy for your store, you can’t go wrong with fraud and theft coverage. 
  • Property Damage: Your building may be one of your biggest business assets, but property can be a surprisingly fragile thing. One major hail storm or strong wind is capable of causing thousands of dollars in damage. If you’re close to a road, one mistake on the part of a driver could force you to close your store down for repairs. That’s why protection against property damage is an absolute must when seeking property coverage for your convenience store.

What Types Of Insurance Do Convenience Stores Need?

Your business needs Commercial General Liability Insurance to provide coverage for injuries that occur in your store. This type of insurance will help you pay for legal costs if a customer claims an injury. If a customer slips on the ice in front of your store, you will be covered. If a customer hurts themselves by knocking over a shelf, you will be covered. This liability insurance can help you continue to run your business if these accidents happen.

Convenience stores should have Product Liability Insurance in case a customer is harmed by a product you sell after they take it home. You might not know you’re selling a product that is spoiled. If that product makes a customer sick, your insurance company can help cover costs from a potential lawsuit.

You need Property Insurance in case your store sustains damaged. This type of insurance will help you cover losses if there’s a storm that damages your property. In addition, it can help cover costs associated with property damages that happen because of other accidents. If someone backs their car into the side of your building, your insurance can pay for repairs.

Every convenience store should have Crime Insurance. We have all seen crimes committed in convenience stores on T.V. It’s important to feel safe in your store. In reality, your business is more likely to be affected by employee or customer crimes, not hold-ups. Your insurance company can help mitigate losses if employees steal from your inventory or customers commit credit card fraud.

Why Your Insurance Should Be Customized

Insurance for convenience stores in Canada should be customized to your specific store. Customized insurance means that your insurance company understands that your business is different from other retail stores. Therefore your insurance should be different based on your location, the number of people you employ, and your annual revenue. If your insurance is customized, you know you won’t be over-charged or under-insured. You can rest easy knowing that your insurance company will help you when unexpected events happen.

How Do I Get Insurance For A Convenience Store?

When you own a convenience store, there are a lot of possibilities you have to plan for. Whether you’re concerned about theft, slips and falls, or property damage, you need an insurance plan that makes sense for you and the unique features of your store. 

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