Grocery stores serve the needs of virtually everyone, with many patrons making multiple visits every week. Whether you run a small, single-location market or multiple super-stores throughout your region, you have a lot of risks to consider, many of which are unique to your industry. Not only does your business have large structures and perishable inventory to protect, but you likely also have a large staff, heavy equipment, and extensive foot traffic. Furthermore, changing technology and competitive trends in the industry are making grocery stores more dependent upon electronic technology than ever before, with many choosing to obtain and store sensitive customer data in an effort to engage in highly personalized marketing strategies. With all of these risks and the enormous investment it takes to start a successful grocery business, you need dependable grocery store insurance to safeguard your assets and defend you against major financial loss.
Does Your Business Need Grocery Store Insurance?
Whether you operate a small, independent grocery store or a bigger supermarket chain, insurance is an essential part of protecting your business and maintaining compliance with local and state laws. Some types of coverage, such as workers compensation, is generally considered mandatory for grocery store owners. Others, such as property insurance, may be required by a lender per the terms of a loan agreement. Remaining coverages may be optional, but they could save you a bundle in potential losses and liabilities. For help assessing your store’s coverage needs, contact an agent here at Burstad Insurance today.
Types of Supermarket Insurance Coverage
A typical grocery store has a collection of insurance policies that together provide various types of coverage against a wide range of risks. Although your store’s unique coverage needs may vary, most types of grocery store insurance can be categorized into one of insurance types – property, liability, and other.
Commercial property insurance includes protection for your store’s physical assets and inventories. With signage, square footage, perishables, non-perishables, refrigeration and kitchen equipment, heavy equipment, computers, fixtures, and other items on hand, your business has a lot at stake in the event of a fire or other loss event. Property insurance is designed to protect you against these types of financial vulnerability with several different types of coverage. Examples include:
Structural and Property Coverage
This type of insurance helps pay for the rebuilding or repair of your building due to damages caused by a covered event. Examples include vandalism, theft, lightning, fire, wind, and smoke damages. Your insurance can also cover the equipment, furnishings, inventory, and other physical assets inside your business when they are damaged or destroyed, as well.
Equipment Breakdown Coverage
Grocery store revenues are highly dependent upon the functionality of heavy equipment. Mechanical failures can cost your business a lot of money not only in lost income, but also in repair costs. From HVAC units and freezers to bakery ovens and forklifts, talk to your independent agent about coverage that can help pay for repairs when your equipment breaks down.
Food Spoilage Coverage
Meats, dairy, and frozen items make up a large section of your inventory. If your store loses power due to a covered event, you may be forced to dispose of these items due to food safety risks. In these cases, food spoilage insurance can help compensate you for the loss of spoiled inventory, so you can restock your shelves again.
Your store faces new liability risks every day you are in business. There are countless customers, employees, and vendors entering the premises, any of whom could become injured on your property. Furthermore, you could be vulnerable to litigation and financial liability if your business causes third-party property damage, personal injury, bodily injury, or other types of harm due to negligence or unintentional acts. For these reasons, most grocery stores need several types of liability insurance to mitigate their risks. Examples include:
This type of coverage insures your grocery store against injury and property damage claims that occur on your premises.
If your store sells beer, wine, or spirits, you may need liquor liability insurance to help cover the cost of damages related to the selling and distribution of alcohol.
If your supermarket has a pharmacy in it, simple errors could result in extensive financial liability. Druggist liability insurance helps protect your store against lawsuits stemming from the filling of prescriptions and other pharmaceutical activities.
When you unintentionally sell contaminated foods, faulty products, or other unsafe items, you could be held financially responsible for resulting injuries – even if the defect is the fault of the manufacturer or distributor. Product liability insurance can help protect your store with coverage for injuries and illnesses caused by these items.
Employment practices liability can provide financial coverage if you are accused of unfair or unlawful hiring, firing, and employment activity, such as discrimination, sexism, and more.
This type of coverage helps pay for victim notification, security restoration, credit monitoring, and other related expenses when cyber criminals hack into your databases and steal sensitive third-party information.
If your liability limits are insufficient to cover a victim’s damages and your legal fees during a lawsuit, you may be able to file a claim against umbrella insurance for excess damages. Umbrella insurance can offer millions of dollars in supplemental liability coverage when you exhaust the limits on your primary policy.
Additional coverages are also available. At Burstad Insurance, we can help you determine which types of protection may be necessary depending on the size of your store and the extent of your operations. Examples include:
This coverage is mandatory for employers. It offers no-fault lost wage compensation and medical expense coverage for employees when they are injured on the job.
Business Interruption Insurance
This type of coverage helps pay for your ongoing operational expenses when you are forced to close your store temporarily due to a covered event or loss.
Wisconsin Grocery Store Insurance Quotes
If you own one or more grocery stores in Central and Western Wisconsin, the team here at Burstad Insurance wants to help you build a strong insurance portfolio that limits your risk exposure and vulnerability to loss. Contact our office today for more information or to request your free quotes. We look forward to serving you soon.