If your music store is classified as low-risk, you may be eligible for bundled Property Insurance and General Liability Insurance coverage in a specialized, affordable policy known as a Business Owner’s Policy, or BOP.
In some cases, a BOP also offers business interruption coverage, which provides you with income and helps cover the expenses you incur as a small-business owner should your business suffer a covered property loss and is forced to close down temporarily.
The general liability coverage included in a Business Owner’s Policy offers protection in the case of lawsuits that claim your business is responsible for property damage or bodily injury. Such lawsuits tend to be costly, even if your business is not ultimately found liable.
In the process of defending yourself, you may be responsible for paying lawyer’s fees, court costs, witness fees; police report costs, fines, judgments and more. These expenses can easily top tens of thousands of dollars. The General Liability Insurance included in a BOP protects your financial reserves by covering those expenses, and in some cases even covers any interest that accrues during the course of the lawsuit.
The BOP’s property coverage protects your business property against loss or damage. It also protects property in your care, control, or custody, even if it belongs to your clients, associates, or others. In the event that covered property is harmed or lost, the BOP provides funds for the property’s replacement value, rather than its depreciated value.
This means that, with a BOP in place, you have the means to replace property quickly so you can get back to serving your clients ASAP.