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Small Business Insurance for Convenience Stores

If you own, or are planning to open, a convenience store, then you’ll be glad to know that you’re entering a thriving industry. Australia’s convenience store industry is one of the strongest in the world, with growth outpacing grocery, pharmacy, and liquor – making owning a convenience outlet a more attractive proposition than ever. But as with any industry, a thriving store brings its own risks for owners to consider. Without proper cover, events such as theft, machinery breakdown, and legal liability can severely impact your business’s bottom line. In this article, we explain the main risks facing convenience store owners, and the best way to insure against them.

Public Liability Insurance

Public liability is usually the first kind of insurance store owners consider when opening up shop. It can even be required by some lease agreements. Public liability protects your business from the cost of claims that arise from liability for property damage or personal injury. Imagine a customer in your convenience store slipped on a wet floor, fell over loose stock, or was injured by a falling fridge. If these events cause serious injury, claims can run into hundreds and thousands of dollars, making protecting your business with public liability insurance essential.

Machinery Breakdown

Machinery breakdown insurance can be easier for convenience store owners to overlook as machines on premises are not usually operated by employees. But in reality, machines such as fridges, freezers, coffee machines and hot water boilers are an essential part of convenience store profits. In fact, food accounted for 44% of all convenience store sales in 2016, demonstrating the impact of these machines on your business.

Machinery breakdown insurance will cover the replacement and repair of the machinery your business relies on. While repair and replacement are important, machinery breakdown insurance provides other benefits that are just as important for convenience store owners. For example, this insurance will cover the cost of hiring temporary fridges or freezers so you don’t lose a large portion of your sales while repairs are in place. Better still, you also have the option to add on cover for deterioration of stock. This means that when your fridge breaks down, spoiling all the food and drink stored inside, you may be able to claim back the value of the ruined stock.

In this article we’ve outlined some of the types of cover most important for convenience stores. But every store is different, and you should consider your own needs before you decide which insurance to purchase. We’d recommend you speak to a small business insurer who can suggest the policies that are the right fit for your business.


Allianz Small Business Advantage Pack Insurance is issued by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708. We do not provide advice based on any consideration of your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision please consider the product disclosure statement available here.


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