Commercial Property Insurance
Your grocery store may contain air conditioning and heating systems, cooking and baking equipment, refrigeration units and processing equipment. The right coverage is essential because your equipment, and perishable inventory, can be extremely costly to repair or replace if not protected properly. Commercial property insurance provides the funds to replace or repair your business property if it is ever destroyed or damaged as a result of a covered peril, such as a fire, windstorm, hail, vandalism, and water damage. Covered property includes your commercial space, merchandise, and equipment.
General Liability Insurance
Your exposure to third-party injuries is extremely high due to high customer traffic within your business premises. General Liability, or GL, protects your business from the financial consequences of third-party property damage and bodily injury. A customer may slip or fall on a wet floor. An unsupervised child may climb and fall off a shelving unit without proper employee supervision. Accidents are impossible to completely avoid no matter the size of your grocery store. GL insurance can also protect your business from lawsuits based on non-physical personal injuries, such as claims of false arrest or detention, discrimination, and wrongful ejection from the premises. These claims arise when dealing with
• Bodily injury: A shelf collapses under the weight of heavy inventory, and a nearby customer sustains an injury when products fall on her head. Your general liability insurance will cover medical costs associated with this incident and any legal fees if she sues.
• Product liability: A number of customers suffer from severe food poisoning after consuming expired dairy products sold at your grocery store. General liability insurance would cover legal fees and settlements if the customers decide to sue.
• Personal injury: You suspect a customer of stealing groceries and detain him until the police arrive. Upon further inspection, you discover that he did not actually steal anything. If the customer sues your business for false detention, your insurer would provide coverage.
It is essential to obtain spoilage coverage, because perishable inventory can be costly to replace. Spoilage coverage can reimburse you for the cost of your lost food and beverages. Covered perils include power outages and equipment failures.
Equipment Breakdown Insurance
This covers the repair or replacement of malfunctioned or damaged equipment. Standard commercial property insurance policies will not cover the breakdown of equipment that is not a direct result of a covered peril, so consider adding equipment breakdown insurance as an endorsement or as a standalone policy.
Liquor Liability Insurance
If a customer consumes alcohol purchased at your business and proceeds to cause injury or damage to others while in an intoxicated state, your grocery store may be held liable for the customer’s actions.
A customer may be at fault for a car accident, starting a fight, or damaging someone else’s property while intoxicated. If your business is sued, your liquor liability policy can cover damages and legal expenses in the case of a lawsuit.
Workers’ Compensation Insurance
Workers’ compensation insurance covers an employee’s medical expenses and lost income due to an injury or illness because of their work. Workers’ compensation insurance can also provide financial benefits for an employee’s dependents in the event of a work-related employee sudden death.
Heavy lifting performed by your employees can result in a number of injuries, such as back strains. Employees mostly responsible for cooking or baking are very susceptible to cuts and burns. Those handling heavy machinery are in danger of injury if they are not properly trained. Even with safety measures in place, accidents are likely to occur in the workplace.
Employees, customers and passersby put you at risk of theft and the potential loss from the theft. This insurance cover all types of crimes including theft, vandalism, shoplifting and dishonest employee practices. Many customers pay for items you sell via cash, which you probably carry on your premises at any given time, making you liable for crimes of theft.
• Commercial auto insurance covers third-party bodily injury and property damage if you or an employee are at fault in an accident involving a company vehicle. This policy also covers the value of your company vehicle if it is damaged by a collision or another covered peril such as theft or vandalism. This coverage is especially important if your grocery store offers delivery services.
• Business income insurance provides funds for loss of income and operating expenses if your business must temporarily close to recover from physical loss or damage. This coverage includes your business’s net profits and normal operating expenses such as rent, employee salaries, and taxes. The damage to your property must be the direct result of a covered peril in order to qualify.