BUNDLED INSURANCE: BUSINESS OWNER'S POLICY (BOP)
for Restaurants, Bars, Catering & Other Food Services Businesses

Owning your own food service business, such as a restaurant, deli, cafe, or bakery, is a unique opportunity to build a community. From your regular customers who make your business part of their daily routine to the new patrons who are trying your food for the first time, there's nothing better than knowing that other people enjoy something you and your employees have created.

Though connecting with people through food is one of the perks of your business, it's also one of the major risks in the food service industry—especially if you lack the appropriate food business insurance. Every time a customer walks through your doors, there's the possibility for slips and spills, which could result in costly lawsuits. Should your refrigeration unit fail, you could lose your inventory—and the replacement costs for both the machine and the food it stored could mean thousands of dollars for your business.

With a Business Owner's Policy, your food service business will be protected from the risk of lawsuits and the unexpected damage or loss of your commercial property. That's because this broad coverage bundles Property Insurance and General Liability Insurance under one plan, giving your food business the protection it needs to operate every day.

Keep reading to learn more about Business Owner's Policies, and be sure to contact one of our food service insurance experts to see if your business meets the eligibility requirements to qualify for a BOP.

 

Business Owner's Policy: Protecting Food Service Professionals

Business Owner's Policy: Protecting Food Service Professionals

For food service professionals, a Business Owner's Policy is a vital component of your overall business protection strategy. By combining General Liability Insurance and Property Insurance, your BOP safeguards your food business from the most common risks in your industry, including property damage, interrupted operations, or lawsuits resulting from bodily injury or property damage to others.

And as a small-business owner, you'll also be happy to know that Business Owner's Policies are usually offered at a discounted rate. Plus, you can tailor your BOP to fit the specific needs and demands of your food business, such as adding on Liquor Liability Insurance, Business Interruption Insurance, or food contamination coverage.

Should a third party file a lawsuit against your food business due to injury, bodily harm, or property damage, the General Liability portion of your Business Owner's Policy will cover the expenses of attorney fees, court-ordered settlements, and more, depending on the limits of your policy.

With your BOP in place, you can rest assured knowing your food business can survive the financial avalanche that these lawsuits can become. Even if your business is not found liable in the lawsuit brought against it, your BOP will still kick in to cover the costs of defending your company in court.

Without this coverage, your business could be responsible for paying all legal fees associated with the lawsuit (including attorney fees, fines, and court costs), which is enough to create a financial burden for any small business owner.

Through the Property Insurance portion of your BOP, your business property, such as the building, signs, computer systems, credit card machines, furnishings, and equipment would be covered in the event of a fire, tornado, or theft. Your BOP also provides coverage for other people's property in your care. You may also want to consider adding coverage for cars in your valet lot or property in your coat check through specialized endorsements.

Talk to one of our food-business insurance experts today to find adequate coverage and protection for your business needs.

 

Business Owner's Policy Coverage

Business Owner's Policy Coverage

The prevalence of lawsuits in food service means a BOP is a natural solution for food business owners who want to protect their business from burdensome court fees, but it also saves your business from equipment loss or damage and business interruption. When considering coverage for your small business, keep in mind these key details of a BOP and how it benefits your company.

 

Food Business Property Claims

Your BOP protects your business by covering the commercial property, equipment, and furnishings that your restaurant, cafe, or bakery requires. Depending on your policy, your refrigeration units, stoves, ovens, computer systems, and culinary supplies can be covered and replaced should a fire, tornado, or burglary strike your business.

Your BOP can even protect the property of others damaged in a covered event. For example, if you rent your commercial kitchen or business space and a fire destroys your restaurant, your BOP would kick in to cover the property damage even though you do not own the building.

 

Food Service General Liability Claims

General Liability Insurance offers coverage to pay for legal defense, court costs, and settlements. Considering the high number of lawsuits involving food service businesses, this coverage is an invaluable component of your BOP. To protect food business owners from lawsuits alleging property or bodily harm, the BOP provides coverage for liability claims. For instance, if a client spills their piping hot espresso on their lap at your cafe, General Liability shields your business from paying for related medical assistance out of pocket, as well as court costs and legal fees should the customer file a lawsuit.

Your BOP can even protect other people's property if it is damaged in a covered event—even if it's not on your premises. Say, for example, your catering business's propane heaters malfunction during a wedding reception and set the venue ablaze. When you have a Business Owner's Policy, your coverage may protect you from the lawsuits associated with the accident.

You can also add on coverages to your Business Owner's Policy to protect your food business from the lawsuits associated with liquor liability, food contamination, completed operations liability, contract liability, and advertising liability. Talk to your insureon agent to see which of these coverages your food business needs to thrive.

 

Liquor Liability Claims

Usually, a Liquor Liability policy must be added on to your BOP if your food service business sells or serves alcohol to patrons. This coverage is a recommended addition to your business protection plan even if your restaurant only allows customers to bring their own beer or wine. Liquor Liability protection will shield your business should a patron get drunk and start a fight on your premises or drive while intoxicated, and then try to hold your business accountable by way of a costly lawsuit. For more information about this policy, visit our Liquor Liability Insurance page.

 

Business Interruption Insurance for Food Service Professionals

Your Business Owner's Policy for your restaurant, cafe, or deli may also include coverage for business interruption. This kind of coverage would shield your business from expenses and lost revenue while your business was closed due to a lawsuit, equipment failure, or food contamination.

Depending on your policy, you could have coverage for the replacement of contaminated food, the procurement of clean equipment, and the funds for public health official expenses associated with the situation. Typically this kind of endorsement is specific to the food business so it must be added on to your policy. The coverage only protects your business for covered claims, and the amount of compensation depends on your policy limits.

 

Policies Tailored for Food Service Professionals

Policies Tailored for Food Service Professionals

At insureon, we understand the work you put in to growing your food business, and we're here to help protect it. As you shop around for food business insurance, feel free to contact one of our insurance agents for any questions you encounter along the way. We can help you to determine if a Business Owner's Policy is appropriate for your coverage needs and whether your business is eligible for the policy.

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