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.