Business Owner’s Policy (BOP)

What Is A Business Owner’s Policy?

A Business Owner’s Policy (BOP) is a comprehensive, flexible, and cost-effective insurance package designed specifically for small businesses. It combines various insurance into one policy, protecting your business against various risks such as property damage, business interruption, and legal liabilities.

Business Owner’s Policy Coverage

Running a restaurant comes with its fair share of risks, but a Business Owner’s Policy (BOP) can help manage this risk. Think of it as an all-in-one safety net that covers everything from property damage to customer injuries. Below are the key coverage areas of a Business Owner’s Policy.

Restaurant Property Damage

A Business Owner’s Policy covers damages to the physical assets of your restaurant. These assets include your building, kitchen equipment, furniture, and fixtures. Whether it’s a fire in the kitchen, a bursted pipe, or vandalism, this policy ensures you can repair or replace damaged property quickly.

Customer Injuries & Property Damage

A BOP protects against legal and medical expenses arising from customer injuries or property damage occurring on your premises. This coverage is crucial in a restaurant setting where slips, trips, and falls can happen, ensuring you can address these incidents without jeopardizing your financial stability.

Advertising Injuries

This policy also includes coverage for advertising injuries, protecting you from lawsuits related to claims of libel, slander, or copyright infringement in your advertising efforts. This is particularly important for restaurants that rely on extensive marketing to attract customers and build their brand.

Alcohol Related Risks

If your restaurant serves alcohol, a BOP may be able to include liquor liability coverage, which protects against claims related to alcohol-induced incidents. This coverage is essential to cover your business from lawsuits stemming from intoxicated patrons causing harm to themselves or others.

Unexpected Restaurant Closures

Included in the policy is Business interruption insurance, which covers lost income and operating expenses if your restaurant has to close temporarily due to an unfortunate event like a fire.

Food Spoilage & Contamination

A BOP also provides coverage for food spoilage and contamination, safeguarding your inventory against losses caused by power outages, equipment failures, or other unforeseen events.

What Is Not Covered?

While a Business Owner’s Policy offers extensive protection, there are certain areas it doesn’t cover. As a restaurant owner, you should be aware of these exclusions to ensure that your business is adequately protected.

Commercial Auto Insurance

This policy does not include coverage for vehicles used in your business operations. If you use a car for catering, delivery, or other restaurant related tasks, you’ll need separate commercial auto insurance. This policy covers accidents, damage, and liability related to your business vehicles.

Workers’ Compensation Insurance

Workers’ compensation insurance is also not part of this policy. This coverage provides medical benefits and wage replacement for employees who get injured or fall ill due to their job. As a restaurant owner, it’s a legal requirement to have workers’ compensation in order to protect your employees.

Data Breach Insurance

In the digital age, data breaches are a significant risk, especially for restaurants that handle credit card transactions and customer information. A BOP does not cover data breaches or cyber-attacks. To safeguard your business from these threats, consider obtaining separate data breach insurance to cover the costs associated with data recovery, legal fees, and notifying affected customers.

Business Owner’s Policy Costs

The cost of a Business Owner’s Policy (BOP) for a restaurant typically ranges between $900 and $2,000 annually, with an average monthly cost of around $150.

Prices depend on various factors like the size of your establishment, the value of your property, and the specific risks involved. Generally, BOPs are cost-effective because they bundle multiple coverages into one policy.

The prices above are just estimates, so we recommend you get in touch with our agents to get an exact personalized quote.

Get A Quote Today

If you want policy advice or an insurance quote for your restaurant, we encourage you to get in touch with our agents today.

We understand restaurant insurance and the immense risks they take when they provide their necessary services. Our agents can reduce policy prices through additional discounts of 10% to 15% from the instant quotes you receive, so please take the time to call us to review your quotes.

We provide the finest comprehensive plans for your restaurant business by providing:

• Licensed insurance agents that are knowledgeable
• Same day coverage in most instances
• Coverage from A-rated insurance companies
• Ability to offer policies nationwide
• The lowest price for the best restaurant Insurance coverage in the industry