As a retailer, a lot goes into keeping your doors open. Along with having fully stocked shelves and excellent customer service, you also need to consider how you will protect your store from theft, fire, or other risks. This is especially important considering that four out of ten small businesses can expect to experience a liability or other type of loss within the next decade.
While it may seem expensive to have insurance policies for every possible threat to your retail business, there is an all-in-one solution: a business owner's policy. It combines commercial property insurance and business liability insurance into one policy. Pepper, Johnstone & Company can help retailers in Alabama explore how this option works and how it can benefit their operations.
What is a Business Owner’s Policy?
A business owner’s policy, also known as BOP insurance, is a type of business insurance that combines commercial property and liability insurance into one policy. It is ideal for small to medium-sized businesses as it provides a more budget-friendly alternative to purchasing multiple types of insurance.
Types of Insurance a Business Owner’s Policy Can Replace
As an entrepreneur, you’re always looking for ways to boost your bottom line. One way to do this is by saving on insurance costs. A business owner’s policy can help you to do just that. It replaces the following types of insurance policies:
Commercial Property Insurance - This portion of the policy covers losses due to theft or damage to your building, inventory, or other property.
Business Interruption Insurance - In the event of a fire or natural disaster, this portion covers the resulting loss of income to your business.
Liability Insurance - If you face legal responsibility due to the damage to others, it will be covered by this portion of the policy.
Please note that these types of policies do not cover professional liability, auto insurance, worker’s compensation, or health and disability insurance. If you need these types of insurance, you’ll have to purchase additional policies.
What Does a Business Owner’s Policy Cover?
A business owner's policy typically covers a range of losses including fire, theft, property damage, natural disasters, liability claims, and bodily injury. The specific coverage depends on the policy you choose.
No matter the type of loss, it’s important to choose the right kind of business owner’s policy based on your level of risk. For example, a retailer with many customers who come into the store every day needs the protection from both bodily injury and property loss that these policies provide. The insurance experts at Pepper, Johnstone & Company can help you determine the type of coverage you need.
Who Can Get a Business Owner’s Policy?
Designed with the needs of small businesses in mind, BOP insurance can be beneficial to most industries. However, it’s particularly important for those who face a higher risk of losses due to theft, damage, and liability, including:
Retail
Food & Beverage
Hospitality
Recreation
Travel & Tourism
Regardless of industry, business owner’s policies are ideal for businesses that operate out of a physical location and frequently have customers on-site.
Why Do I Need a Business Owner’s Policy?
Certain businesses, like retail stores, face a variety of risks. Whether it’s the loss of inventory from shoplifters or property damage after a severe storm, you need to be able to mitigate these threats to your bottom line. Inexpensive and convenient insurance coverage, like a business owner’s policy, can help you do just that.
This coverage can also be tailored to the needs of your business. For example, it includes coverage for spoilage if you run a restaurant or other food service establishment. Not only will you be protected from theft, fire, and other potential losses, you will save time and money by having just one policy to manage and pay for.
How Policy Costs Are Determined
Several factors influence the cost of your business owner's policy, including:
The size and location of your business
The value of your inventory and equipment
Your industry and associated risk levels
Your claims history
Coverage limits and deductible amounts you select
Understanding these factors can help you make informed decisions about your coverage needs and budget accordingly.
Get a Business Owner’s Policy for Your Store in Alabama
As a retailer in Alabama, you sell the products we rely on every day. Whether you’re selling food, clothing, or other material goods, a business owner’s policy can protect your livelihood. The Pepper, Johnstone & Company team can help you explore your options to find the right coverage with appropriate limits and deductibles in the state of Alabama.
Protect Your Store in Alabama With a Business Owner’s Policy
If you’re not sure what your insurance needs are, reach out to our independent insurance experts. We understand the needs of retailers in our region and can help you navigate all of your options from a variety of providers. Contact us online or call us at 866-872-0431 to get started!