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.