Practical Steps To Lower Insurance Costs & Reduce Risk In Your Store

By Teeto Shirajee, NCASEF Vice Chair

For 7-Eleven franchisees, general liability insurance is a necessary part of doing business—but that doesn’t mean we have to be stuck paying sky-high premiums. By taking a proactive approach to managing risk, we can significantly reduce costs while also creating a safer environment for our customers and employees. Whether you’re operating a high-volume urban store or a quieter suburban location, there are concrete steps you can take to better control your insurance expenses without sacrificing coverage.

Start by conducting a thorough risk assessment of your store. Identify any common hazards—like uneven flooring, poor lighting, or high-theft areas—and address them through regular maintenance and safety checks. Implementing a strong safety and loss control program, including employee training on proper cash handling, de-escalation techniques, and slip-and-fall prevention, can go a long way toward reducing incidents. Surveillance cameras and alarm systems not only deter crime, but they also demonstrate to insurers that you’re serious about protecting your business.

Another way to control premiums is to take a close look at your claims history. Identify any patterns in past incidents and take corrective action to prevent them from recurring. Keeping detailed records of all incidents and claims makes it easier to work with your insurance provider and helps build a track record of responsibility. Consider increasing your deductible if it makes sense financially—this often results in lower premiums, but be sure your store can afford the out-of-pocket cost if a claim arises.

You should also think about bundling policies—such as general liability, workers’ comp, and property coverage—under a single provider. This can often lead to discounts and streamline communication. Additionally, don’t just set it and forget it—review your policy limits periodically to ensure they align with your store’s actual exposure. Over-insuring can mean you’re paying for coverage you don’t need, while under-insuring could leave you vulnerable.

Even if you’re using captive insurance, it’s wise to shop around from time to time or request quotes from outside insurers. Doing so gives you leverage in negotiations and helps validate your current rates. Engage with your captive insurance managers regularly—they can offer guidance on ways to improve your safety protocols and ultimately drive down costs. Tools like data analytics can also be incredibly useful. Use them to track incidents, claims, and safety trends over time so you can make more informed decisions about your store operations.

Don’t overlook the importance of legal compliance. Make sure your store meets all local, state, and federal regulations—being out of compliance not only increases your risk but can also drive up insurance costs. Clean, well-maintained stores with documented safety practices are simply less expensive to insure. Encourage customers to share feedback about safety and service issues so you can catch problems before they escalate into costly claims.

Further, consider whether an umbrella policy makes sense for your store. These policies provide additional protection beyond your general liability limits and are often surprisingly affordable. As the convenience store industry evolves, keep an eye on emerging liability trends—what worked five years ago might not be enough today. Reevaluate your insurance strategy regularly, and work closely with your insurance advisor to tailor your coverage to your store’s specific needs.

Smart risk management helps improve store operations, protect your bottom line, and support long-term success. Taking the time to assess your coverage, invest in prevention, and work closely with your insurance advisor can lead to real savings and fewer disruptions. With the right strategies in place, you’ll be better equipped to handle challenges and keep your store running smoothly.