When your business centers around food and drink, along with the opportunity to connect with people and build long-term customer relationships, there comes with it some inherent risks. Your customers might slip and fall, or your freezer might fail.
The more customers and employees you have, the greater the odds that something unexpected will happen. This is why a good Business Owner’s Policy is a vital part of protecting your business property and your reputation.
What Is Business Owner’s Policy Insurance?
A business owners policy insurance plan bundles the coverages most hospitality businesses need most into a single, more manageable policy, so a single incident doesn’t force you to juggle multiple standalone claims. BOP Insurance is considered standard and prudent coverage for owners of restaurants, cafes, or delis, bars or taverns, and catering businesses.
1. General Liability Insurance. This coverage protects you against lawsuits and awarded damages related to your business and will pay for your legal defense. General Liability coverage can allow you to keep your doors open through a legal challenge.
2. Commercial Property Insurance. With coverage for property your business owns or leases, this policy can also protect leased equipment, fixtures, and important paperwork or records such as accounts receivable.
3. Business Interruption Insurance (Business Income Insurance). This offering protects against income loss due to major events that prevent you from operating. Some policies will also cover temporary relocation costs.
What Things Might Not Be Covered by a BOP?
Typically, Business Owner’s Policies do not cover:
- Auto Insurance
- Workers’ Compensation
Professional Liability Insurance
Other policies or add-ons to your BOP will be needed to cover professional services you provide, business vehicles, and your employees’ health, disability, or workers’ compensation claims.
Who Should Have a Business Owner’s Policy?
BOP Insurance is considered standard and prudent coverage for owners of these types of businesses:
- Restaurant, Cafe, or Deli
Bar or Tavern
- Catering and Mobile Food Service
In general, if you rent or own a physical location for your business, including running your business from home, you should have coverage. Customers might be injured there or file a lawsuit claiming injury or other damages related to your service.
If you keep inventory and have assets at your place of business that might be stolen or damaged, these vital business investments need protection. Without coverage, loss of inventory or damage to necessary equipment might have a huge impact to your ability to generate income.
What Other Advantages Does BOP Insurance for Restaurants Provide?
- Peace of Mind
- Reduced Rates
- The Ability to Combat Frivolous or Malicious Lawsuits
- Protection for the Property of Others (in a covered event)
Finding the Right BOP for Your Business
Choosing the best Business Owners Policy Insurance for the best price may seem complex, but our team at Tabak Insurance Agency has the experience and expertise to guide you to the right BOP to meet your unique needs and budget.
Avoid the one-size-fits-all options and work with your own team of experts who have the leading hospitality industry resources at their fingertips. Share your information with our experts using the form below, and we will help you choose a BOP package that is the best fit at the best price and grows with your business.
The right coverage will help ensure that your business is creating genuine connections and satisfied customers long into the future. Contact our expert team, and we will help you choose a BOP package that is the best fit at the best price and grows with your business. Call 800-806-0689 to speak with a hospitality insurance specialist directly or get a fast, no obligation quote online today.
BOP Insurance FAQs
What does a business owners policy cover for a restaurant?
A restaurant business owners policy typically bundles general liability, commercial property, and business interruption insurance into one plan. Together, these cover third-party injury and property damage claims, physical damage to your building and equipment, and lost income if a covered event forces you to temporarily close.
Is a business owners policy the same as general liability insurance?
No. General liability insurance covers third-party injury and property damage claims. A business owners policy bundles general liability with commercial property and business interruption coverage into a single package, which typically costs less than purchasing each policy separately.
What types of businesses qualify for a Business Owners Policy?
Business Owners Policy insurance is considered standard and prudent coverage for restaurants, cafes, delis, bars, taverns, and catering businesses. If you operate a food and beverage business that serves customers on premises or manages inventory and equipment, a BOP is typically an appropriate coverage option.
What advantages does a BOP provide beyond basic coverage?
Beyond core coverage, a Business Owners Policy offers peace of mind, reduced rates compared to purchasing policies separately, the ability to combat frivolous or malicious lawsuits, and protection for the property of others in a covered event. These advantages make a BOP a practical choice for hospitality businesses.
Can a BOP be customized instead of using a one-size-fits-all policy?
Yes. Tabak Insurance Agency avoids one-size-fits-all options and works directly with business owners to guide them to the right BOP for their specific needs and budget. Their team has hospitality industry experience and resources to help build a policy that fits and grows with the business.
Latest Resources
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