What a restaurant BOP actually covers, and the four gaps it leaves
Most restaurant owners are sold "a BOP" and assume they're covered. A BOP is the right starting point, but a generic one leaves four predictable gaps that show up in exactly the claims restaurants actually file.
What is a BOP?
A Business Owner's Policy bundles three coverages: general liability (someone gets hurt or you damage their property), commercial property (your building, equipment, and contents), and business income (lost revenue when a covered event shuts you down). Bundling them is cheaper than buying each separately.
What's not in a standard BOP?
- Liquor liability, if you serve alcohol, this is usually separate and essential.
- Workers' compensation, state mandated and never part of a BOP.
- Commercial auto, delivery and catering vehicles need their own policy.
- Food spoilage, the walk in fails overnight; confirm this is endorsed, not assumed.
The exposures specific to food service
Kitchen fire is the obvious one, grease and high heat make it the signature restaurant claim, and the rebuild has to meet current code. Slip-and-fall is the most frequent liability claim in any space with wet floors and foot traffic. And if you serve liquor, a single over-service incident can dwarf every other exposure on the policy.
What to confirm before you sign
- Liquor liability limits that match your alcohol sales, not a token amount.
- Business income with enough months of coverage to actually rebuild and reopen.
- Spoilage and equipment-breakdown endorsements for refrigeration.
- Whether your BOP's property limit is replacement cost or depreciated value.