Grocery Store Insurance

Grocery Store Insurance: Everything You Need to Know

Everyone knows just how important grocery stores and supermarkets are for every neighborhood. However, since a lot of items in grocery stores are biodegradable and many people go through supermarkets on a daily basis, this business faces a unique set of risks that deserves to be addressed properly.

Additionally, when it comes to supermarkets and grocery stores, it is crucial to have protection in case some falls or a weather disaster causes your business to shut down. To prevent the consequences of these and many other unfortunate events, it is a good idea to consider having grocery store insurance. Here’s what you need to know. 

A woman buying lemon at a grocery store.

What is Grocery Store Insurance?

As mentioned above, running a supermarket comes with a special set of risks. It also requires a lot of time and money. Without adequate insurance for grocery stores, all your valuable assets inside the supermarket could be lost due to a single unfortunate event. 

Grocery store insurance (also known as supermarket insurance) can help you protect your business in different situations. Most supermarket insurance policies are bundled policies that combine several coverages in one. The coverage they provide can be further adjusted according to your particular needs. That’s why it’s always a good idea to talk to a professional insurance agent before you decide to purchase insurance. 

Why Do I Need Supermarket Insurance?

If you operate a grocery store or a supermarket, the chances are you should consider having grocery store insurance. One of the key reasons is because running this type of business is very expensive. If an accident occurs on your business property, you are liable for the damages. 

Also, every supermarket must have employees. In case they get injured or get sick while working, as a business owner, you are also responsible for their medical needs. Don’t forget that staff includes the vendors you work with. If they get injured on your property, you are legally responsible for them as well.

Besides accidents and injuries, grocery stores face the risk of theft and property damage. If someone robs your supermarket and they steal a large sum of inventory or if your store is damaged in a fire or storm, this could be a big financial hit for your revenue. 

Supermarket insurance is created to cover most of the risks that are associated with running this type of business. These risks include various situations, for example, if a customer slips and falls on a wet floor or if an employee gets injured while doing their job. With grocery store insurance, you protect your business from devastating financial consequences that come out as a result of unpredictable situations. 

Here are some of the most common risks that grocery stores and supermarkets face daily:

  • Bodily injuries to customers and employees
  • Injuries caused by products you sell
  • Personal injury or property damages caused by employees
  • Burglary
  • Vandalism
  • False advertising
  • Power outages
  • Storm
  • Explosion
  • Fire
  • Food spoilage 
  • Car accidents with company vehicles 
  • Liquor liability if you sell alcohol

What Type of Supermarket Insurance do I Need?

There are several supermarket insurance policies that grocery stores and supermarkets should consider to protect their businesses. Here are a few key types of coverage you need as a business owner:

    • Commercial Property Insurance: Commercial property insurance covers the physical structure of your store, including the content inside. For example, if someone steals equipment from your store or a storm damages your property, commercial property insurance will help you pay for the losses. While the items covered by the policy may vary, theft, fire, and vandalism are usually always covered. 
    • Commercial General Liability Insurance: A general liability policy protects you from any accidents or injuries that you may be found responsible for. One of the perks of having this policy is that it offers to cover negligence claims. Suppose an employee gets injured and they decide to sue you on the grounds that you haven’t secured your premises properly. In this case, commercial general liability insurance will cover the fees of any necessary medical care, and legal fees.
    • Business Interruption Insurance: To run a successful business, you need to be open to business. This is especially true for grocery stores and supermarkets. However, in case you are forced to shut down your business for an extended period of time, you could lose a lot of money. In this case, a business interruption policy can help you cover the lost income, including the wages for your employees. 
    • Workers’ Compensation Insurance: As mentioned above, liability insurance will cover injuries, legal claims, and third party accidents, but it won’t cover your employees. That’s why you should consider having a workers’ comp policy to cover any injuries, legal claims, and accidents that are related to your employees. Suppose a member of your staff gets injured on the premises while working. Workers’ compensation insurance covers the costs of medical care, legal fees, and the employees’ lost wages. 
  • Liquor Liability Insurance: Although grocery stores and supermarkets don’t sell liquor for immediate drinking, you may still be liable for bodily injuries and property damages that occur because of the alcohol you sold. 
  • Food Spoilage Policy: This type of coverage can protect your grocery store if there is a prolonged power outage or the failure of food storage equipment, and as a result, the food in the supermarket gets spoiled. 
  • Commercial Auto Insurance: Commercial auto insurance insures vehicles your supermarket owns, leases, hires, or borrows. Remember that not all stores need this coverage, but if you deliver or cater, you might want to consider having it.  

How Much Does Supermarket Insurance Cost?

On average, the price of a standard $1,000,000/$2,000,000 general liability insurance policy for small grocery stores varies from $47 to $79 per month depending on location, payroll, sales, and experience. 

Regardless of the size of your grocery store or the coverage you need, here is the average cost of insurance for supermarkets:

  • General liability insurance costs around $500 in annual premiums
  • Workers’ Compensation Insurance costs around $1400 in annual premiums
  • Business Owner’s Policy costs $1200 in annual premiums

Finally, whether you run a grocery store, a supermarket, a commissary or a delicatessen store, there are many risks you face every day. From customers complaining that the product they bought made them sick, to the employees who can slip and fall on wet floors, you can be found liable for a variety of unpredictable events. Luckily, by having grocery store insurance, you can keep your business and your most valuable assets safe in all these situations. 

Contact East Insurance Group today for a personal quote created for your specific needs or if you have any questions about grocery store insurance!

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