Business owner’s policy for 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

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.

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.

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:

• A customer trips over a display at a grocery store and breaks an arm
• A florist spills water on a customer’s smartphone
• A delivery person slips on a freshly mopped floor at a pet shop

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.

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, a pharmacy 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.

A business owner’s policy provides general liability and property protection for retailers, but it doesn’t safeguard against employee injuries and other risks. Owners of retail stores should also consider:

Workers’ compensation insurance: Required in almost every state for store employees, workers’ comp covers medical costs for work-related injuries and illnesses.

Cyber liability insurance: This policy is crucial for retailers who handle credit cards or conduct business online. It helps cover the cost of a data breach or cyberattack.

Liquor liability insurance: If your shop sells alcohol, you likely need this policy to comply with your state's dram shop laws and protect against lawsuits.

Commercial umbrella insurance: Similar to excess liability insurance, this policy boosts coverage on a retailer’s general liability, commercial auto, and employer’s liability insurance once the limit is reached.

Commercial auto insurance: State laws usually require this coverage for business-owned vehicles. It helps cover costs if your retail shop's delivery truck or other vehicle gets into an accident.

Are you ready to safeguard your retail 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.