What BOP Does and Doesn’t Cover

What a BOP Does and Doesn’t Cover

Restaurant customers often order a combo meal, since it has everything most people need – entrée, side and drink. Packaging a burger, fries and a soda into a combo meal makes a lot of sense, and it’s like how a Business Owners Policy (BOP) works in insurance.

What Is Included With a BOP?

A BOP insurance package offers several types of insurance rolled into one. Most BOPs include policy coverage for: • Property Insurance: This is coverage for your business’s buildings and contents against damage and theft. This coverage applies whether you lease, rent or own your building.

BOP property coverage also takes care of the contents of your buildings, such as physical inventory, furniture, equipment, vehicles, cash or digital assets such as customer data. A standard BOP will cover named perils, such as fire, wind, hail, vandalism and theft. • Business Interruption Insurance: This coverage can help protect your business in the event of a fire or other serious catastrophe that interrupts the operations of your business.

Business Interruption Insurance can cover the loss of income resulting from a business interruption and help with other related expenses, such as operating out of a temporary location. • General Liability Insurance: This covers your business’s legal responsibility for damages it may cause to others, for things you or your employees do or fail to do as part of business operations.

General Liability includes coverage for medical bills for a customer’s accident or injury as well as damage that happens to a customer’s property. Coverage also extends to cover certain legal fees, court costs and judgments or settlements resulting from damages your business is claimed to have caused others.

BOPs can offer other additional insurance as an easy add-on. In sum, this combo of policies can protect your business from a wide range of risks typical of your industry.

What Is Not Covered by a BOP?

A BOP is a package of the most common and useful policy coverages in your industry, but it’s not everything on the menu. For some businesses, a BOP may be all you need. But many restaurant businesses will need additional protection, as most BOPs do not include the following policies: • Workers’ Compensation • Employment Practices Liability • Commercial Auto • Cyber Liability

Who Needs a BOP?

While not all businesses need the kind of packaged coverage a BOP offers, many do. In general, your business needs a BOP if your business: • Is small to medium sized. • Maintains a physical address. • Has assets at risk of damage or theft. • Faces the risk of being sued.

What Is the Advantage of a BOP?

A BOP insurance package offers several advantages for restaurant businesses like yours.

Convenience: A BOP is a convenient way of buying insurance. Getting coverage for your business can be confusing and stressful enough without having to pick out all the right coverage à la carte.

Cost savings: A BOP can save most people money on their coverage. That’s because the package is designed so that coverage doesn’t overlap, eliminating the likelihood that you will pay for the same thing twice.

Broad protection: A BOP can help ensure you have all the standard coverage you need. You won’t be risking coverage gaps and exposures that are possible when you combine generalized stand-alone policies.

Industry specific: A BOP is often a better choice for small- and medium-sized businesses in a particular industry. Every industry has unique risks that a BOP policy is specifically designed to protect against.

A BOP is consistently one of the most popular insurance policies available for restaurant businesses. It’s a quick and easy way to get the standard industry coverage and limits your business needs in one convenient package. For businesses with property and liability risks, it’s the smart choice. While a BOP combo doesn’t include all the insurance products you may need, it’s a great starting point for key property, liability and business interruption coverage.

If you have questions about a BOP for your business or other insurance needs, co-brokers Lockton Affinity and Elevanta have you covered. Visit Elevanta.LocktonAffinity.com to learn more.

The Elevanta Insurance Program is administered by Lockton Affinity, LLC d/b/a Lockton Affinity Insurance Brokers LLC in California #0795478. Coverage is subject to actual policy terms and conditions. Policy benefits are the sole responsibility of the issuing insurance company. Coverage may be provided by an excess/surplus lines insurer which is not licensed by or subject to the supervision of the insurance department of your state of residence. Policy coverage forms and rates are not subject to regulation by the insurance department of your state of residence. Excess/Surplus lines insurers do not generally participate in state guaranty funds and therefore insureds are not protected by such funds in the event of the insurer’s insolvency. Elevanta will receive a royalty fee for the licensing of its name and trademarks as part of the insurance program offered to the extent permitted by applicable law.

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The Elevanta Insurance Program is administered by Lockton Affinity, LLC d/b/a Lockton Affinity Insurance Brokers LLC in California #0795478. Coverage is subject to actual policy terms and conditions. Policy benefits are the sole responsibility of the issuing insurance company. Coverage may be provided by an excess/surplus lines insurer which is not licensed by or subject to the supervision of the insurance department of your state of residence. Policy coverage forms and rates are not subject to regulation by the insurance department of your state of residence. Excess/Surplus lines insurers do not generally participate in state guaranty funds and therefore insureds are not protected by such funds in the event of the insurer’s insolvency. Elevanta will receive a royalty fee for the licensing of its name and trademarks as part of the insurance program offered to the extent permitted by applicable law.