Why Your Small Business Needs a Business Owner's Policy (BOP)?
If your bar, restaurant, or small business hasn’t heard of a business owner’s policy (BOP), you may want to reconsider your insurance strategy.
Who Qualifies for a BOP?
Small, low-risk businesses usually qualify for a BOP, including:
A restaurant that operates out of a small space
A food truck with minimal risks
A catering business with only a few employees
What is a BOP?
A business owner’s policy (BOP) bundles general liability insurance with commercial property insurance. It typically costs less than if the policies were bought separately. It provides the best defense against common accidents. The policy bundles general liability insurance with commercial property insurance at a lower rate than purchasing both policies separately.
General Liability Insurance covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.
Commercial Property Insurance pays to repair or replace stolen, lost, or damaged business property. It covers your business’s physical location and other assets like equipment.
Why You Need a BYOB?
A BOP can also include coverage for food spoilage, typically anywhere from a $10,000 to $100,000 policy limit. The policy typically covers:
Damage to your business property.
Customer injuries and property damage.
Advertising injuries, such as slander.
Business income which can help you pay bills and employees if your business has to temporarily close.
Crime insurance which helps protect your business from fraud, theft and forgery.
Owners can typically tailor a BOP to meet their specific needs. In the food service industry, useful add-ons might include:
Accounts receivable - Protection against losses from unpaid invoices.
Cyber liability - Attacks and damages to computer systems or electronic data.
Employment Practices Liability - Wrongful acts arising from the employment process.
BOPs do not cover auto insurance, professional liability, worker’s compensation or health and disability insurance.
Free Quotes and Policy Comparisons
Ready to start saving money and safeguarding your food service business with a BOP or other type of insurance? Get a free quote or compare policies by speaking with a Sanders Insurance consultant.
