Small business insurance for convenience stores


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Small business insurance for convenience stores

If you own a convenience store, you have multiple people entering your premises every day. Small business insurance for convenience stores can cover your business for public liability, material damage and other unforeseen circumstances that may affect your business operations.

Two thirds of Australian convenience stores were owned by major convenience store groups or franchises, while one third were independently owned in 2010.

Australia's convenience store sector

The Australian convenience store sector currently generates $4 billion in annual revenue . According to the Australian Retailers Association (ARA), two thirds of Australian convenience stores were owned by major convenience store groups or franchises in 2010, while one third were independently ownedii. At present, there are 26,569 people employed across 2,271 convenience stores in Australiai. Victoria had the largest share of people employed in the convenience store sector (4,750) in 2010, compared to other Australian states such as New South Wales (4,530) or Queensland (3,400)iii.

Key opportunities for convenience stores have been identified as understanding and catering to specific customer needs. This includes helping time-poor customers and commuters by providing services such as ATMs and Wi-Fiiv.

Experiencing competition from supermarkets, newsagencies and service stationsii, the Australian convenience store sector has been struggling with a negative growth rate of 3.6 per cent since 2009i.

How insurance helps small retail businesses

Facing industry issues such as increasing competition and the need to keep up with changing consumer needs, it is also important to protect your business financially. By purchasing and maintaining an appropriate level of insurance cover for your convenience store, your business will be protected from a range of small business risks. This includes financial compensation for material damage to your building, contents or stock, for example in the event of fire or storm.

Glass cover protects your business if your shop windows or internal glass such as mirrors are accidentally damaged. Theft cover can safeguard your business against financial impact of a robbery and insure your store contents up to $20,000. Theft cover can also protect against damages sustained by the building as a result of break-in. Also consider adding glass cover to your insurance policy. It protects your business if your shop windows or internal glass such as mirrors are accidentally damaged, providing compensation for the glass repair or replacement as well as security measures to protect your shop's contents.

If someone suffers an accident or injury while in your store, your business may be liable. Without public liability insurance, which can financially compensate third parties for injury, you may find yourself unable to afford the expenses incurred.


iIBISWorld 2013, Convenience Stores in Australia: Market Research Report, viewed 12 November 2013,
http://www.ibisworld.com.au/industry/default.aspx?indid=183

iiAustralian Retailers Association 2010, State of the Independent Retail Sector 2010, viewed 12 November 2013,
http://www.retail.org.au/Portals/0/Research/ARA%20Final%20Report_060810_2%20(1).pdf, p. 23

iiiAustralian Retailers Association 2010, State of the Independent Retail Sector 2010, viewed 12 November 2013,
http://www.retail.org.au/Portals/0/Research/ARA%20Final%20Report_060810_2%20(1).pdf, p. 24

ivAustralian Retailers Association 2010, State of the Independent Retail Sector 2010, viewed 12 November 2013,
http://www.retail.org.au/Portals/0/Research/ARA%20Final%20Report_060810_2%20(1).pdf, p. 5