Retail Store Business Insurance
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Business owner’s policy for retail businesses

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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:

Talk to a licensed Insureon agent to discover if your retail business is eligible for a BOP.

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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:

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

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.

Temporary closure

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.

Other important policies for retailers 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. 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.

Get free quotes and buy online with Insureon

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.

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Updated: July 5, 2023
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