Convenience Store, Gas Stations & Grocery Store Insurance Coverage

Employers may be held liability for employees who sell or serve alcohol in violation of state laws. The negligent service to an intoxicated or underage person can produce substantial verdicts or settlements. Even if an establishment is not found liable the average cost to defend a claim is $150,000.

A 16-year-old boy purchased beer from a local retail store where his ID was not checked. The beer was taken to a party where minors were in attendance. The boy’s 20-year-old sister arrived to take him home, and also consumed some beer. On the way home she flipped her convertible, and her brother was killed in the accident. The mother filed suit against the retail store. Even though the sister caused the accident and did not purchase the alcohol the retail store was held liable due to illegal sale to a minor. The claim settled for $580,000 in damages and there was an additional $1000,000 in defense costs.

It’s a scenario that plays out in countless grocery stores, convenience stores, even restaurants and fast food chains, around the country. A person slips on the floor and a lawsuit springs up seemingly before the plaintiff even hits the ground.

It’s the classic “slip and fall case,” a claim that the store was negligent in allowing a dangerous condition to exist that caused the slip.

Here’s a perfect example. A 78-year-old grandmother of three walked down the aisle of a local store, slipped on some rice and suffered a broken knee.

Consider the variables inherent in this situation, a 78-year-old woman trying to raise three grandchildren on her own; a very tangible injury – a fractured knee; and the fact that the trial was held just three weeks before Christmas.

The jury awarded the 78-year-old grandmother $50,000, which ballooned to just more than $55,500 when added costs and interest were tacked on. (Marry Christmas)

A convenience store was subject to clean up cost in excess of $300,000 created while the local fire department was extinguishing a fire at the convenience store. The fire started in the inventory storage room. While the fire department was extinguishing the fire, inventory commingled creating a hazardous substance than ran offsite and into the storm water system releasing the hazardous substance into a nearby creek.

An excavation contractor was subject to cleanup costs and business interruption expenses when they ruptured an unmarked petroleum pipeline while doing street and road work next to a gas station. The loss of more than $700,000 forced the contractor out of business so the property owner had to pay the bill.

A gas station had a waste hauler that was transporting its used motor oil overturn and spills its load into a nearby stream. Under CERCLA, the gas station must contribute for their apportionment of the load for cleanup cost since federal law states that you own your waste from cradle to grave. Cost to settle the claim for the service station was $600,000

Do you know where the coverage gaps are in your insurance policy, one of our professional at Insurance Corner would welcome the opportunity to view your current insurance policy with you, and tailor a high octane insurance coverage package for your business insurance exposures.

Want to Stay up to Date? Get insurance sent straight to your inbox.