If you run a retail store, you already know that every day brings new risks. A customer could trip over a display and sue you. A pipe could burst overnight and ruin your inventory. A fire could shut you down for weeks. Here's the good news: you don't need to buy five different insurance policies to protect yourself from all of that. That's exactly what a Business Owners Policy, or BOP, is designed to do.
Think of a BOP as the combo meal of business insurance. Instead of ordering general liability and property coverage separately, you get both bundled together—usually for 10-15% less than you'd pay buying them individually. For most retail store owners, it's the smartest starting point for insurance coverage.
What's Actually Included in a BOP?
A standard BOP combines three essential coverages into one policy. First, there's general liability insurance, which protects you when customers or visitors get hurt on your property. If someone slips on your freshly mopped floor and breaks their wrist, your BOP covers their medical bills and any legal costs if they decide to sue. It also handles property damage claims—like if a customer's car gets scratched in your parking lot.
Second, commercial property insurance covers your physical stuff. We're talking about your building (if you own it), your inventory, your fixtures and equipment, your computers, your cash registers—basically everything you need to run your store. If there's a fire, theft, or vandalism, your property coverage kicks in to replace or repair what was damaged.
Third—and this is the coverage most retail owners forget about until they need it—business interruption insurance. Let's say that fire forces you to close for two months while you rebuild. You're still paying rent, utilities, and employees, but there's no money coming in. Business interruption coverage reimburses you for that lost income and helps cover ongoing expenses while you're closed.
Does Your Retail Store Qualify for a BOP?
Most retail stores qualify for BOP coverage, but there are some limits. The typical eligibility requirements in 2025 are pretty straightforward: you need fewer than 100 employees and less than $5 million in annual revenue. Your store also needs to be under 35,000 square feet (though basements that aren't open to the public don't count toward that total).
Retail stores are actually one of the most affordable business types to insure with a BOP. While the average BOP costs about $147 per month across all industries, retail businesses typically pay less than $120 monthly. That's because retail operations are generally considered lower risk compared to, say, construction or manufacturing.
Here's something worth noting: if you're buying general liability insurance alone, you'd pay around $104 monthly. Adding property and business interruption coverage through a BOP only costs about $43 more per month. That's a pretty good deal for significantly more protection.
What a BOP Doesn't Cover (And Why That Matters)
This is where retail owners sometimes get caught off guard. A BOP doesn't cover everything, and assuming it does can leave you vulnerable. The most important exclusion? Workers' compensation. If you have employees, you absolutely need a separate workers' comp policy. A BOP won't pay if your cashier throws out their back lifting inventory or your stock clerk falls off a ladder.
BOPs also don't include commercial auto insurance. If you use a vehicle for business—making deliveries, running to the bank, picking up supplies—you need separate coverage for that. Your personal auto policy won't cover business use, and a BOP won't either.
Natural disasters are another big gap. Standard BOPs typically cover wind, hail, lightning, and sometimes hurricanes and tornadoes. But they exclude floods and earthquakes. If your retail store is in a flood zone or earthquake-prone area, you'll need separate policies for those perils. In 2026, this has become even more critical as insurers have started offering actual cash value coverage instead of full replacement cost for some property damage, meaning you might get less money than you need to fully rebuild.
Professional liability and cyber liability aren't included either. If you provide advice or professional services as part of your retail business, you might need professional liability coverage. And with cyber attacks becoming more common, data breach insurance is worth considering if you store customer credit card information or personal data.
When Does a BOP Make Sense for Your Retail Store?
If you have a physical storefront, inventory, and customers coming through your door, a BOP is probably your best foundation for insurance coverage. It's particularly valuable for retail stores because you face both liability risks (customers on your premises) and property risks (merchandise that could be stolen or damaged).
The business interruption component is especially important for retail. Unlike a service business that might be able to work from home temporarily, retail stores depend on their physical location. If you can't open your doors, you can't make money. Business interruption coverage fills that gap and can literally save your business during a temporary closure.
The bundled savings matter too. Buying general liability and commercial property separately might give you slightly more customization, but you'll pay more for it. For most small to mid-sized retail operations, the 10-15% savings you get by bundling into a BOP makes better financial sense.
How to Get Started With BOP Coverage
Start by getting quotes from at least three insurers. Prices and coverage can vary significantly between carriers, and you want to make sure you're comparing apples to apples. When you're getting quotes, have this information ready: your annual revenue, number of employees, square footage of your space, value of your inventory and equipment, and details about your building (whether you own or lease, construction type, age, security features).
Pay close attention to coverage limits. The cheapest policy isn't always the best policy if it leaves you underinsured. Make sure your property coverage limits actually reflect what it would cost to replace your inventory and equipment. And don't lowball your business interruption coverage—calculate what you'd actually need to cover several months of expenses with no income.
Finally, work with an agent or broker who understands retail businesses. They can help identify coverage gaps specific to your type of store and recommend appropriate endorsements or additional policies to round out your coverage. A BOP is a great start, but it's rarely the only insurance a retail store needs. The right insurance professional can help you build a complete coverage package that actually protects your business without paying for coverage you don't need.
