Why Retailers and Wholesalers Need BOP Coverage

Topics: Business Owner's Policy

As the holiday shopping season winds down, small retailers and wholesalers know now more than ever the importance of BOP coverage for small businesses. A BOP ensures that your business is covered in the event of an accident or injury on your property, damage due to illegal activity, or business closure due to natural events.

Keep reading to find out how retailers and wholesalers benefit from coverage.

What is covered under a BOP?

Earlier this month, we published an article called, “How a BOP Caters to Small Businesses.” In that blog we talked about what a BOP is and what it covers. But here’s a quick refresher. A business owner’s policy, or BOP, usually includes the following:

General Liability, which covers third party injuries that occur on your property as well as associated legal fees. It can also cover “advertising injury,” which includes offenses like libel and copyright infringement.

Property Insurance, which covers repairs to your place of business in the event of damage from a bad storm or even from illegal activity.

Business Interruption Coverage, which will reimburse the business for profit loss due to closings from covered events like a major storm, hacking event, or illegal activity.

Why retailers need a BOP

Why retailers need a BOP
Small retailers make their money by keeping the doors open and the lights on for as long as possible each and every day. Providing excellent customer service and high quality products are totally within your control. Keeping heavy storms or power outages at bay are just not in the wheelhouse of the average store owner. That’s where BOP can really make a difference.

If the power goes out and you’re unable to open your store on one of the busiest shopping days of the year, business interruption coverage in your BOP can reimburse you for the lost income. If the store is damaged by a snowstorm while closed during the same storm, property insurance in your BOP can cover the costs of the expensive repairs. And if a customer slips and falls on your property after you reopen, general liability can make sure those costs are covered as well.

Why wholesalers need a BOP

Wholesalers are successful when they buy low and sell high. But when it comes to counting costs, small business wholesalers rely on keeping the cost of doing business low. With BOP from AmTrust, you’ll keep costs low by bundling together all of the insurance policies you need to protect your business. General liability, property and business interruption coverage can come together at a discounted rate under a BOP.

If a potential client comes into your warehouse and falls near a rack of equipment, general liability can cover the associated costs of the potential lawsuit. If your inventory software is hacked and you have to shut down your business to protect your financial information, business interruption can reimburse you for lost income. And if your loading bay is damaged from illegal activity, property insurance under your BOP can help you get the repair financially covered. 

Learn more about small business insurance

How much coverage does your business need? With a Business Owner’s Policy from AmTrust, you can save money by bundling commercial lines coverages together. Contact an AmTrust appointed agent to find out how much coverage you need to protect your company.

Mitigate the risks of running your small business with AmTrust small business insurance today.


Time Zones