Foodborne Illness
A customer becomes ill after consuming expired or improperly stored food and beverages purchased at your store.
Coverage
Product Liability Insurance for Convenience Stores
Shield your retail store from illness, injury, and property damage claims caused by the products you sell.
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Product liability insurance for convenience stores protects your business against liability claims arising from the products you sell and distribute. It covers claims related to foodborne illness, contamination, or injuries caused by products you sell. You face real legal exposure even though your store did not manufacture the items. Simply selling a product that turns out to be defective, expired, or contaminated creates liability for your retail operation.
What's covered
What Product Liability Covers
Product liability provides coverage to you as a distributor or seller against your own legal defense and financial settlement, regardless of your manufacturer's liability. Key examples for convenience stores include:
Know the gaps
What It Doesn't Cover
Product liability covers third-party injury resulting from the sale of products. It does not cover the following:
Do you need it
Who Needs Product Liability Insurance
A common question asked by many store owners is, “Does a convenience store have to have product liability if we don't manufacture anything?” The answer is yes. Liability is attached to any convenience store that sells packaged food, beverages, or general merchandise.
Under the product liability law, any business involved in the product supply chain can be held legally responsible for injuries resulting from a defective product. Stores selling hot prepared foods, perishable goods, or specialized items like dietary supplements and vape products face higher exposure. Distribution liability protection is vital.
Pricing
What Product Liability Insurance Costs
Your product liability cost convenience store premium depends on total revenue, sales volume, and product mix. Preparing hot foods or special items is more likely to be a source of exposure than shelf-stable packaged foods.
Product liability is not typically offered as a separate policy in commercial insurance. This coverage is included in your general liability insurance policy or a larger Business Owner's Policy (BOP). The average general liability (GL) policy for a convenience store costs between $500 and $1,200 annually or $42 and $100 monthly. View a complete convenience store insurance cost breakdown for details.
What a claim looks like
Example Claim
A customer suffers from more serious food poisoning due to poor refrigeration of a dairy product sold in your store. The customer sues for reimbursement of emergency medical expenses and lost wages. Your policy covers $12,000 for medical settlements and attorney fees to settle the claim. This policy handles the full legal bill so a spoiled inventory mistake doesn't disrupt your store's daily cash flow.
How it fits
How It Fits With Your Other Coverage
You typically would find product liability coverage included in your general liability insurance. General liability covers when a customer slips, trips, or falls on your floor; product liability covers claims resulting from products sold at your checkout counter. If cooler failure causes expired food liability insurance risks or spoiled stock, you need equipment breakdown insurance to cover your inventory losses.
The power of choice
We shop 30+ A-rated carriers so you don't have to.
- Travelers
- The Hartford
- Chubb
- Liberty Mutual
- Nationwide
- Zurich
- CNA
- Progressive
- Philadelphia Insurance
- Berkshire Hathaway GUARD
- biBerk
- AmTrust
- Employers
- Grange Insurance
- Columbia Insurance
- Encova
- Admiral Insurance Group
- Attune
- Coterie
- ERGO NEXT
- AmWINS
- CRC Group
- RT Specialty
- Burns & Wilcox
- Jencap
- Bass Underwriters
- Jimcor Agencies
- CharityFirst
Common questions
Frequently Asked Questions
Am I liable for a product I sell but didn't make?
Yes. Courts hold sellers, distributors, and retailers liable for injuries caused by defective or unsafe products. Being part of the sales chain creates direct legal exposure for your store.
Does this cover a product recall?
No. Product liability is for claims for third-party injury or property damage. It does not include the expenses involved with performing a product recall, such as administrative expenses, customer notification expenses, or disposal expenses.
Get Covered
Insure a retail store against unexpected injuries by customers and defective product suits. Connect with our experienced and specialised commercial insurance agent today and talk about getting a quote for your coverage from Insure C-Store.