- Business owner’s policy
A business owner’s policy (BOP) bundles general liability insurance with commercial property insurance. It typically costs less than if the policies were bought separately.
A BOP bundles policies to protect retail businesses
A business owner’s policy offers a wide scope of protection against the most common incidents that occur in the retail industry, including customer injuries and property damage. A BOP bundles general liability insurance and commercial property insurance, usually at a lower rate than purchasing both policies separately.
A business owner’s policy shields against:
- Damage to inventory, equipment, and other business property
- Lawsuits over customer injury or property damage on your premises
- Lawsuits related to faulty products
- Lawsuits related to advertising injuries
- Temporary closure
Customize a BOP to fit your business
Business owners can tailor a BOP to meet their specific needs. In the retail industry, useful add-ons might include business interruption insurance, product liability insurance, or other endorsements.
Small, low-risk retail businesses usually qualify for a BOP, including:
- A small consignment or thrift store
- An online retailer who works alone, or only has a handful of employees
- A boutique clothing store
Talk to a licensed Insureon agent to discover if your retail business is eligible for a BOP.
What coverage can a business owner's policy provide for a retail business?
Damage to equipment, inventory, and other business property
A BOP includes commercial property insurance that safeguards:
- Your store's products and inventory
- Retail equipment, such as cash registers
- Furnishings and fixtures at your shop
- Your building if you own it
If a fire damages your store, someone breaks in and steals items or money, or a burst pipe destroys your inventory, a business owner's policy can help cover the costs.
Lawsuits over customer injury or property damage on your premises
The general liability portion of a BOP can cover legal bills and other expenses related to customer injuries or property damage. For instance, it can provide coverage if:
Lawsuits related to faulty products
If a product that you sell injures a customer or damages their property, your shop could be held accountable. A BOP usually includes product liability insurance to safeguard against these kinds of lawsuits.
Product liability insurance is typically part of products-completed operations coverage, which covers defective products and faulty workmanship.
Lawsuits related to advertising injuries
The general liability portion of a BOP also offers protection against advertising injuries, including:
- Spoken defamation (slander) and written defamation (libel)
- Copyright infringement
For example, if a vape shop employee makes a derogatory comment about a rival shop in an online forum and your business is sued for libel, general liability insurance could pay for the ensuing legal fees.
A temporary closure can lead to long-term financial issues, especially for a retail store that depends on daily transactions. Often included in a BOP, business interruption insurance reimburses your retail store for lost revenue and other expenses related to closure caused by a covered loss.
For example, your small clothing store may need to close for several weeks for renovation after a fire. Business interruption insurance would cover lost profits and normal operating expenses, including payroll. That means you can still pay your employees and stay afloat when dealing with a fire or other tragedy.
Other policies for retail businesses to consider
A business owner’s policy provides general liability and property protection for retailers, but it doesn’t safeguard against employee injuries and other risks. Retail business owners should also consider:
Workers’ compensation insurance: Required in almost every state for retail businesses that have employees, workers’ comp can cover medical costs for work-related injuries and illnesses.
Umbrella insurance: This policy, also called excess liability insurance, boosts coverage on a retailer’s general liability, commercial auto, or employer’s liability insurance.
Get free quotes and compare policies with Insureon
Are you ready to safeguard your clothing store, flower shop, or computer and electronics store with a business owner's policy? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.