When a retail business cannot find suitable insurance coverage through a standard Business Owner’s Policy (BOP) program, Non-Standard Retail Special Multi-Peril Insurance provides store owners with a solution, that offers both comprehensive property and liability protection.
This policy will safeguard your assets and business interests from sudden loss or accidental damage caused by any incident, natural or man-made, except for causes of loss, that are specifically excluded in the policy.
What is Non-Standard Retail Special Multi-Peril?
Non-Standard Retail Special Multi-Peril (SMP) is a packaged insurance policy designed for retail operations that cannot be placed under a standard BOP. It is typically written on a special form that provides broader “all risk” property coverage along with tailored liability protections. The policy can combine property coverage, commercial liability, crime and cyber protections to address multiple exposures in a single contract.
Who needs it
This coverage is often sought by small to mid-size retailers, specialty shops, convenience stores, and other storefront operators with higher-than-average exposures—such as cash-heavy operations, high customer traffic, or unique inventory risks. Risk managers and owners who need alternatives to a standard BOP may compare options like Non-Standard Service Special Multi-Peril (SMP) or explore tailored SMP packages for specialized risk profiles via SMP Packages (Specialty and Nonstandard).
What it typically covers
Typical coverages include building and business personal property protection, commercial general liability for third-party bodily injury and property damage, commercial auto exposure, business income and extra expense, property in transit, and additional property coverages like outdoor signs. Policies may also include cyber liability and employee dishonesty/crime protections, addressing modern operational hazards and theft exposures.
For retailers that only need structure and contents protection, a mono-line option such as Non-Standard Retail Mono-line Property Insurance can sometimes be an alternate solution.
Common exclusions or limitations
Exclusions typically found in SMP forms include wear and tear, gradual deterioration, certain types of water damage unless specified, intentional acts, and losses that are specifically excluded by endorsement. Flood and earthquake are commonly excluded and may require separate policies. Underwriting factors, policy limits, and sub-limits can further limit recovery for specific types of property or perils.
Factors that influence cost
Premiums are influenced by location, building construction, fire protection and sprinkler systems, inventory values, claims history, security measures, employee practices, and exposure to transportation or transit losses. Underwriting will also consider business income needs, limits chosen for cyber and crime coverages, and the presence of high-value or high-theft items.
Proof of insurance & compliance
Retailers may need certificates of insurance to satisfy landlords, vendors, or lenders. SMP policies can be customized with additional insured endorsements and waiver of subrogation where required. Proofs of insurance demonstrate compliance with lease requirements and vendor contracts but do not replace reviewing policy language for limits and exclusions.
How to get a quote
To get an accurate quote, prepare information on your location(s), building details, annual sales, payroll, inventory values, any commercial auto exposure, and a recent loss history. Discuss your operations with a broker or agent so underwriting can match coverages to exposures; you can also request options directly through the site quote process.
Frequently Asked Questions
Do SMP policies cover both property and liability?
Yes. Special Multi-Peril policies are designed to include property and liability coverages in a single package, though limits, sub-limits, and endorsements vary by insurer.
Is cyber liability commonly included?
Cyber liability is often available as an add-on or built-in element for retailers, but limits and coverage terms differ—review the cyber section specifically to confirm data breach and cyber crime protections.
Can I add coverage for employee theft?
Yes. Employee theft, crime, and dishonesty protections are commonly offered as part of SMP programs or as separate crime endorsements.
Still have questions? Talk to a local insurance expert.