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 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:
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:
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:
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:
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:
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.
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.
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.