Business insurance is a great way to reassure that a single thing going wrong doesn’t end in the financial downfall of your business, but it may vary significantly from industry to industry.
The grocery store insurance package for grocery stores and supermarkets consists of general liability, commercial property, and other insurance policies.
Read this article to understand the various costs of premiums, where to get the best coverage, and the different policies.
Supermarket and Grocery Store Liability Insurance
General liability, product liability, and liquor liability policies are the supermarket and grocery store liability insurance you’ll need. The sections below quickly discuss how each works.
General Liability Insurance
General liability insurance will cover expenses if a third-party experiences an accident on the premises of the grocery store and decides to file a personal injury claim or property damage claim.
This will also cover costs if someone sues the supermarket or grocery store for slander, libel, other types of reputational harm, and copyright infringement.
Similar to the general liability policy of deli insurance bundles, the general liability policy of grocery store and supermarket insurance plans offer these optional policies:
- Non-owned/hired
- auto liability coverage
- Tools and equipment coverage
- Customer property protection coverage
| CoverWallet | NEXT (Best) | Thimble | Hiscox | Progressive | World Insurance Associates | AIG | |
| Per occurrence limit | $1,000,000 | $500,000/$1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $500,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $600,000/$2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | Included | Included |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | Included | Included |
| Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $5,000 | Included | Included |
| Waiver of subrogation included? | Yes | No | Included | Can be included | Included | Excluded | Can be included |
| Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Excluded | Excluded | Can be included |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes | Included | Included |
| Deductible | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Product Liability Insurance
Product liability insurance will cover costs if a customer filed a claim after buying an expired or defective product. You can use this insurance to cover legal services, public relations services, and extra expenses for product recall. Note that product liability insurance is automatically offered as part of a general liability policy.
Liquor Liability Insurance
Liquor liability insurance, also a common inclusion in convenience store insurance plans, is useful for grocery stores and supermarkets selling liquors.
When a customer who bought alcohol experienced bodily injuries or property damage from being drunk and decided to file a claim, liquor liability insurance will pay for expenses.
Commercial Property Insurance for Grocery Stores and Supermarkets
Commercial property insurance will cover the commercial building of grocery stores and supermarkets. These are the functions of commercial property insurance:
- If the commercial building is destroyed by fire or extreme weather, commercial property insurance will reimburse financial losses up to the limit stated in its terms
There are additional coverages in commercial property insurance. These are business equipment and tools coverage and stocks and contents coverage.
Business equipment and tools coverage will reimburse losses if the grocery store or supermarket’s generator, freezers, shopping carts, and air conditioner becomes lost or damaged due to fire, theft, vandalism, and other covered perils.
| CoverWallet | NEXT (Best) | Thimble | Progressive | |
| Building coverage limit (minimum) | $50,000 | $360,000 | $25,000/$500,000 | $25,000 |
| Contents coverage limit (minimum) | $50,000 | $25,000 | $25,000/$500,000 | $25,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Included |
| Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Included |
| Money and securities | Excluded | $2,500 | $1,000 | Included |
| Lock and keys | Excluded | $2,500 | Excluded | Included |
| Business interruption floater | Excluded | Included | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Included |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included |
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Business Owner’s Policy for Supermarkets and Grocery Stores
A business owner’s policy bundles general liability and commercial property insurance. You can use this to shoulder the cost of liability claims or recover financial losses if something happens to your business property.
Optional policies might be offered in a business owner’s policy such as commercial auto and workers compensation insurance.
| CoverWallet | Thimble | NEXT (Best) | Progressive | |
| General liability aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 |
| Commercial property coverage limit | $50,000 | $500,000 | $360,000 | $25,000 |
| Optional policies can be added? | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes |
Workers Compensation Insurance for Supermarkets and Grocery Stores
There are numerous work-related hazards in grocery stores and supermarkets. This is why authorities require the purchase of workers’ compensation insurance. Workers’ compensation insurance does the following:
- Pay for treatment, hospitalization, medication, and rehab if an employee suffers from a work-related injury or disease
- Provide lost income compensation in the form of a weekly allowance if the employee needs to stop working for a while to continue recuperating.
- If the employee dies, workers’ compensation insurance will provide death benefits to dependents that’s also equal to two-thirds of the average weekly wage
Supermarket van insurance
It is primarily offered as commercial auto insurance. Commercial auto insurance provides the following protections:
- Auto liability coverage – A supermarket van might cause an accident. Auto liability coverage will pay for the medical expenses of the injured persons and will reimburse those who had their property damaged.
- Physical damage coverage – This has two forms – collision and comprehensive. Collision physical damage coverage will pay for parts repair or replacement if the supermarket van collided with an object or vehicle and sustained damage.
- Comprehensive physical damage coverage will take care of parts repair or replacement if damage is sustained due to fire, theft, vandalism, acts of nature, and other covered perils
Help others make better decisions
Supermarket & Grocery Store Insurance Cost
The average supermarket & grocery store insurance cost is $90 per month or $1,080 per year for a $1 million general liability insurance. The cost of insurance for supermarkets and grocery stores varies based on a range of different factors,
including the size of the operation that you’re trying to insure. then the larger number of employees.business history and reliability.
| Cost Per Month | Cost Per Year | Deductible | |
| General Liability | $90 | $1,080 | $0-$500 |
| Workers Comp | $120 | $1,440 | $500-$1,000 |
| Commercial Property | $105 | $1,260 | $1,000-$2,500 |
| Commercial Auto | $110 | $1,320 | $1,000-$1,500 |
| Business Owners’ Policy | $100 | $1,200 | $500-$1,000 |
Best Supermarket & Grocery Store Insurance Companies
CoverWallet
CoverWallet has four tailored insurance options included in its supermarket and grocery store insurance – general liability only, general liability and commercial property, business owner’s policy with workers comp, and a custom plan. The company made this insurance plan by customizing the quotes of its partners.
This company will also help if you want to purchase insurance from other companies. CoverWallet is a fast and mobile friendly online quotes.
Average cost: $62 per month
Our rating: 10/10
Pros
- General liability insurance for supermarket and grocery stores contains an optional product and completed operations coverage
- Offers business interruption insurance and cyber liability insurance in its custom plan
- Cancel a policy anytime
Cons
- Not an insurance company
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Thimble
Thimble’s grocery store insurance offers general liability insurance, commercial property insurance, equipment breakdown insurance, and non-owned/rented auto coverage.
Choose CoverWallet because its general liability insurance is available as a short-term policy by the hours, days, weeks, or months. Furthermore, the company allows you not to have any deductible.
Average cost: $74 per month
Our rating: 9/10
Pros
- Short-term liability insurance for grocery stores
- Offers non-owned/rented auto coverage
- Choose not to have a deductible
- Get insurance quotes fast
Cons
- All transactions have to be made via the Thimble website or app
NEXT
NEXT’s grocery store insurance includes general liability insurance, workers compensation insurance, commercial auto insurance, and commercial property insurance.
Average cost: $81 per month
Our rating: 8/10
Pros
- Instant live certificate of insurance
- Save up to 10% if you bundle policies
- Offers the lowest possible policy limits
Cons
- Those used to traditional insurance processes might find NEXT’s service complicated
Progressive
Progressive will cover you through its retail insurance that provides protection for grocery stores and liquor stores, clothing stores, and more. Inclusions are workers compensation, general liability insurance, and commercial auto insurance. You can also decide to get a business owner’s policy.
Average cost: $96 per month
Our rating: 8/10
Pros
- Up to 15% discount on commercial auto insurance for grocery stores and supermarkets
- Has an in-house team of insurance experts ready to assist you
- Get quotes by calling or by using Progressive’s quotes generator
Cons
- Customers report that Progressive’s rates suddenly increased after having their policies for 6 months
State Farm Grocery Store Insurance
State Farm’s grocery store insurance includes liability insurance policies, business interruption insurance, commercial property insurance, spoilage coverage, and utility business interruption insurance.
You can also opt to get coverage via State Farm’s business owner’s policy that doesn’t only bundle general liability and commercial property insurance but also includes professional liability insurance.
Average cost: $149 per month
Our rating: 6/10
Pros
- Offers comprehensive business owner’s policy
- You can file or track a claim online
- Different communication channels to quickly attend to customer concerns
- Has 19,000+ local agents
Cons
- You need to find an agent to purchase insurance
USAA Grocery Store Insurance
USAA provides grocery store owners insurance with coverage using their small business insurance plan. The difference is that USAA’s business owner’s policy typically includes three components.
Both property and general liability insurance are still there, but they also add business income insurance business interruption to the deal on a very affordable BOP (Business Owners’ Policy).
Average cost: $82 per month
Our rating: 5/10
Pros
- Business owner’s policy includes business interruption insurance
- Get a quote online
- File and track a claim online
Cons
- Only available for grocery stores and supermarkets owned by former or active military
