Business Owner's Policy
Bundled Small Business Owner's Insurance

As the owner of your own retail store, grocery store, or shop, you know the feeling of pride that comes with serving your community. Every new customer who walks through your doors marks the chance to make a connection and share your expertise, which is why your customers come to you rather than your corporate competition.

These opportunities to establish new relationships and serve the public come with a unique set of risks, though. When you open your business premises to patrons, you also expose your store to potential liabilities — especially if you don't have adequate insurance coverage. Should a customer slip on a freshly mopped floor or one of your employees accidentally damage their property, your business could face a costly lawsuit. Retail business owners also have inventory to protect — and one fire or tornado could be enough to close a business for good if you don't have the means to replace those goods.

If your retail business is considered low-risk, it may be eligible for a Business Owner's Policy (BOP), which offers a broad scope of protection. By bundling Property Insurance and General Liability Insurance, a BOP protects your retail business from the risk of lawsuits and the unexpected damage or loss of your commercial property.

Keep reading to learn more about Business Owner's Policies, and be sure to contact one of our retail insurance experts to see if your business meets the requirements for a BOP.

Protecting Retail Storeowners

Business Owner's Policy: Protecting Retail Storeowners

As a retail business owner, you have worked hard to build your business, which is why a Business Owner's Policy is an invaluable asset when it comes to safeguarding your store. In addition to its broad coverage, a BOP also benefits small-business owners by saving them a little money, as these policies are usually offered at a discounted rate. Plus, you can tailor your BOP to include additional coverages, such as Business Interruption Insurance, which compensates you for income lost and expenses incurred while your store was closed due to a covered event.

Through its combined General Liability and Property Insurance policies, your BOP protects your business from liability claims filed against your business due to third-party bodily injury or property damage and from natural disasters or fires that destroy inventory and render your business space inoperable.

Should a third party sue your business due to injury, bodily harm, or property damage, the General Liabilityportion of your Business Owner's Policy can cover attorney's fees, court-ordered settlements, bond premiums, and more, depending on the limits of your policy. Even if the lawsuit filed against your business is ultimately meritless, your BOP saves your company from paying out of pocket for the sizable costs of defending yourself in court (including attorney fees, fines, and court costs).

Your BOP also includes Property Insurance that covers your business assets, including your storefront, business signs, computer systems, credit card machines, inventory furnishings, and equipment. Covered claims typically include property damage due to natural disasters (e.g. tornadoes), accidents (e.g. fires), or criminal activity (e.g. theft and vandalism). Your BOP also provides coverage for other people's property in your care, such as equipment you rent from others.

If you have questions about what your BOP can cover, or which endorsements you may want to include to further protect your business, talk to one of our retail-business insurance experts today.

BOP Coverage

Retail Business Insurance: Business Owner's Policy Coverage

Unfortunately, the risk of lawsuits is all-too-familiar terrain for many small-business owners, which is why a BOP is such a critical component in any business protection strategy. Your BOP not only shields your retail business from having to worry about skyrocketing court courts, but it also covers your business for the loss of its equipment or damage to its storefront and inventory. While you shop around for reliable business insurance for your retail business, consider these important ways a BOP can benefit your store.

Retail Business Property Claims

Shop windows have a long-time allure in American culture, and your small retail business is likely no different. So when disaster strikes and your windows are broken, your aisles ransacked, and your inventory damaged, your BOP ensures you have the funds necessary to repair your storefront and replace your damaged equipment, furnishings, and inventory. Some policies even provide compensation for valuable items that cannot be replaced, such as antiques or one-of-a-kind artisan goods.

Depending on your policy, the inventory, supplies, and equipment that you need to run your business can be insured and replaced should a fire, tornado, or burglary occur. You can also decide whether you want your property insured at its current value or its replacement value. The later typically costs a little more, but assures your equipment or inventory can be replaced no matter its depreciated value at the time of the covered claim. Additionally, your BOP can even protect the property of others damaged in a covered event, which is especially useful for storeowners who rent their business space. Most landlords require some kind of Property Insurance when they lease their commercial buildings.

Retail Business General Liability Claims

Considering the flow of customers that comes through a retail store each day, the BOP's General Liability Insurance is a necessary safety net for most storeowners as it protects against liability lawsuits. It only takes one customer slipping on your store's slick floors for a lawsuit to happen. Should the injured customer bring a lawsuit against your business, the General Liability portion of your BOP can provide coverage for your legal defense, court costs, settlements, medical expenses, or other costs associated with a third party's claim of bodily injury or property damage in relation to your business.

Your BOP can even protect other people's property if it is damaged in a covered event. Say, for example, a customer leaves their property in your possession for minor repair. If you damage their property and they decide to sue your store, this coverage could potentially pay for the costs associated with defending your business in court and the resulting fines.

Your Business Owner's Policy can also be tailored to protect your retail business from other claims, such as completed operations liability, contract liability, and advertising liability. Your Insureon agent can help you decide which coverages are appropriate for your retail business needs.

Business Interruption Insurance for Retail Storeowners

When disaster strikes, your retail business may have to temporarily halt operations in order to repair your storefront, replace inventory and equipment, or for you to appear in court to defend your business against liability claims. Even while your doors are closed, however, you may still need income to cover payroll and utility expenses. Fortunately, Business Interruption Insurance — a kind of Property Insurance — can possibly be added on to your BOP to help pay for these expenses in the event of a covered claim. Ask your Insureon agent for more details about Business Interruption Insurance for your small retail business.

Policies Tailored for Retail Business Owners

Our agents at Insureon know that each retail business has its own risks and priorities, which is why we strive to offer policies tailored for your specific business needs. Feel free to contact one of our insurance agents for advice about the kinds of coverage available to retail business owners, and whether your business is eligible for a Business Owner's Policy.

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