If you own a restaurant, you need multiple types of insurance to protect your business. A BOP (Business Owners Policy) bundles the most essential coverages into a single, streamlined policy, typically saving you 10 to 20 percent compared to buying each policy on its own.
Restaurant BOP insurance, also called restaurant package insurance, combines commercial property, general liability, and business interruption coverage under one policy with one premium. For most small to mid-sized restaurants, it is the most cost-effective way to build a solid insurance foundation.
This page breaks down what a restaurant BOP includes, what it costs, what it does not cover, and how to decide if it is the right fit for your business. For a broader look at all the coverage types restaurants need, check out our restaurant insurance guide.
Key Takeaways
- A restaurant BOP bundles property, liability, and business interruption into one policy
- Saves 10 to 20% compared to purchasing each policy separately
- Average cost: $2,500 to $3,500 per year for small restaurants
- Does NOT include liquor liability, workers' comp, or commercial auto
- An independent broker can shop multiple carriers for the best rate
- Latent Insurance Services is an independent brokerage that helps restaurant owners find the best BOP bundle versus separate policies, comparing options from 20+ carriers to maximize coverage and savings.
What Is Restaurant BOP Insurance?
A restaurant BOP (Business Owners Policy) is a bundled insurance package that combines commercial property insurance, general liability insurance, and business interruption coverage into a single policy. It is designed for small to mid-sized businesses that need core protection without the complexity of managing multiple separate policies.
Think of it like a combo meal instead of ordering everything a la carte. You get the essential coverages packaged together, usually at a lower price than buying them individually. Most major carriers offer BOPs specifically tailored for food service businesses, with endorsements you can add for restaurant-specific risks.
A BOP is one of the most common starting points for restaurant insurance. It covers the basics, and you build additional coverage around it based on your specific needs.
What Does a Restaurant BOP Cover?
A standard restaurant BOP includes three core coverages: commercial property, general liability, and business interruption insurance. Each one protects against different risks, and together they address the most common threats restaurants face.
Commercial Property Insurance
Commercial property insurance within a BOP covers the physical assets your restaurant depends on, including kitchen equipment, furniture, signage, inventory, and interior fixtures. If a covered event like a fire, storm, or vandalism damages your property, this coverage pays to repair or replace it.
For most restaurants, kitchen equipment alone can represent $50,000 to $200,000 in value. Restaurant property insurance within a BOP protects that investment. Coverage typically extends to:
- Kitchen equipment (ovens, fryers, refrigerators, dishwashers)
- Furniture and fixtures (tables, chairs, bar stools, lighting)
- Signage and exterior elements
- Food inventory and supplies
- Point-of-sale systems and electronics
General Liability Insurance
General liability insurance covers third-party claims for bodily injury, property damage, and personal or advertising injury. For restaurants, the most common claims involve customer slip-and-fall injuries and foodborne illness allegations.
According to industry data, general liability alone costs restaurants $900 to $1,691 per year when purchased as a standalone policy. Including it in a BOP typically costs less. Learn more about what this coverage handles in our guide to general liability for restaurants.
Common claims covered by restaurant general liability insurance include:
- A customer slipping on a wet floor and breaking a wrist
- A patron getting sick from an undercooked dish
- Damage to a customer's personal property (a coat ruined by a spill, for example)
- Legal defense costs even if the claim is unfounded
Business Interruption Insurance
Business interruption insurance replaces lost income and covers ongoing expenses if a covered event forces your restaurant to close temporarily. If a kitchen fire shuts down your restaurant for three months, this coverage pays for lost revenue, rent, utilities, payroll, and relocation costs while you rebuild.
This is one of the most valuable parts of a restaurant BOP, and one that many owners overlook. A single week of lost revenue can cost a small restaurant $10,000 to $30,000 or more. Our detailed guide on restaurant business interruption insurance explains how this coverage works.
Common BOP Add-Ons for Restaurants
Most carriers let you customize your restaurant BOP with endorsements (add-ons) for additional risks:
- Equipment breakdown: Covers mechanical and electrical failure of kitchen equipment, not just damage from external events. See our guide to restaurant equipment breakdown coverage.
- Food spoilage: Covers inventory loss from refrigeration failure or power outages.
- Cyber liability: Covers data breach costs if your POS system is compromised.
- Hired and non-owned auto: Covers liability when employees use personal vehicles for deliveries.
BOP vs. Buying Separate Policies
Purchasing a restaurant BOP saves 10 to 20% compared to buying commercial property, general liability, and business interruption as separate policies, according to Progressive. The savings come from carriers bundling the underwriting, administration, and claims handling into a single package.
Here is how the costs compare:
| Coverage | Separate Policy Cost (Annual) | Included in BOP? |
|---|---|---|
| General Liability | $900 to $1,691 | Yes |
| Commercial Property | $1,000 to $3,000 | Yes |
| Business Interruption | $750 to $1,500 | Yes |
| Total (Separate) | $2,650 to $6,191 | -- |
| Restaurant BOP (Bundled) | $2,500 to $3,500 | All three included |
| Estimated Savings | $150 to $2,691/year | -- |
Beyond cost savings, a BOP simplifies administration. You have one policy number, one renewal date, and one point of contact for claims. For busy restaurant owners, that simplicity has real value.
How Much Does Restaurant BOP Insurance Cost?
The average restaurant BOP costs $2,500 to $3,500 per year, or roughly $200 to $300 per month. According to MoneyGeek, the national average for restaurant BOPs is approximately $3,010 per year ($251 per month).
Your actual premium depends on several factors:
| Factor | Impact on Premium |
|---|---|
| Location | Higher in areas with more crime, severe weather, or expensive real estate |
| Annual Revenue | Higher revenue generally means higher premiums |
| Square Footage | Larger spaces cost more to insure |
| Property Value | More expensive equipment and buildout raises property coverage costs |
| Claims History | Prior claims increase premiums |
| Coverage Limits | Higher limits cost more but provide better protection |
| Deductible | Higher deductible lowers your premium |
A small cafe doing $300,000 in annual revenue might pay closer to $2,000 per year, while a full-service restaurant with $1.5 million in revenue and a full bar could pay $4,000 or more. For a deeper look at pricing, see our breakdown of restaurant insurance costs and the restaurant insurance cost page.
What a Restaurant BOP Does NOT Cover
A restaurant BOP does not cover liquor liability, workers' compensation, commercial auto insurance, flood damage, or earthquake damage. These exclusions are important because several of them are critical for restaurant operations.
Key exclusions:
- Liquor liability: If your restaurant serves alcohol, you need a separate liquor liability policy. A BOP will not cover claims related to alcohol service.
- Workers' compensation: Required by law in nearly every state. Must be purchased as a standalone policy.
- Commercial auto: If you own delivery vehicles, you need a separate commercial auto policy.
- Flood and earthquake: These natural disasters require separate policies or endorsements.
- Professional liability/errors and omissions: Not included in a standard BOP.
For a full picture of what restaurant liability insurance options you need beyond a BOP, review our guide to types of restaurant insurance.
Real-World Example: How a BOP Protects Your Restaurant
Consider this scenario based on industry claim data: a grease fire breaks out in your kitchen on a Friday evening. The fire department contains it, but the damage is significant.
Here is how a restaurant BOP responds:
- Commercial property pays $85,000 to replace your destroyed fryer, hood system, prep station, and repair fire and smoke damage to walls and ceilings.
- Business interruption covers $36,000 in lost revenue, rent, and payroll during the 6 weeks it takes to rebuild and reopen.
- General liability covers $12,000 in medical bills for a customer who suffered minor burns during the evacuation.
Total covered: $133,000 from a single incident, all under one policy. Without a BOP, you would need to file claims across three separate policies with three different carriers, potentially facing coverage gaps or disputes between insurers.
The average fire damage claim for commercial properties exceeds $50,000, and restaurants are especially vulnerable due to open flames, hot oil, and grease buildup. This is why restaurant insurance coverage is not optional.
How to Get Restaurant BOP Insurance
The best way to get restaurant BOP insurance is to work with an independent insurance broker who can compare quotes from multiple carriers. Unlike captive agents who represent one company, an independent broker shops the market to find the best coverage and price for your specific situation.
Steps to get covered:
- 1.Assess your needs: Inventory your equipment, estimate your property value, and identify your revenue and risk factors.
- 2.Get multiple quotes: Compare at least three carriers. Premiums for the same coverage can vary by 30% or more.
- 3.Review coverage limits: Make sure property limits match your actual replacement costs, not just your purchase prices.
- 4.Choose your deductible: A higher deductible lowers your premium but increases your out-of-pocket cost when you file a claim.
- 5.Add endorsements: Consider equipment breakdown, food spoilage, and other add-ons relevant to your operation.
At Latent Insurance Services, we specialize in restaurant insurance and work with multiple carriers to build the right business owners policy for your restaurant. We handle the comparison shopping so you do not have to.
Ready to see what a BOP would cost for your restaurant? Get a restaurant insurance quote today.
Why Restaurant Owners Choose Latent Insurance
Latent Insurance Services is an independent brokerage specializing in restaurant insurance. We compare BOP options from 20+ carriers to determine whether a bundled policy or separate policies make more sense for your restaurant. Every operation is different, and we tailor the coverage structure to your size, location, and risk profile. Get a quote or schedule a call to see what a BOP would cost for your restaurant.
Frequently Asked Questions
Is a BOP required for restaurants?
A BOP is not legally required, but most landlords and lenders require restaurants to carry commercial property and general liability insurance, which are the core components of a BOP. Buying them as a bundle through a BOP is typically the most affordable option. Learn more about landlord insurance requirements for restaurants.
What is the difference between a BOP and general liability insurance?
General liability is a single coverage that protects against third-party injury and property damage claims. A BOP includes general liability plus commercial property and business interruption coverage. For most restaurants, a BOP provides significantly more protection for only a modest increase in cost.
Can I add liquor liability to a BOP?
Some carriers allow you to add liquor liability as an endorsement to a BOP, while others require a separate policy. If your restaurant serves alcohol, discuss this with your broker. Liquor liability is essential for any establishment that sells or serves alcoholic beverages.
How can I lower my restaurant BOP premium?
You can reduce your premium by raising your deductible, improving safety measures (fire suppression, security cameras), maintaining a clean claims history, and bundling additional policies with the same carrier. For more strategies, read our guide on how to reduce your restaurant insurance costs.
Do I need a BOP if I rent my restaurant space?
Even if your landlord insures the building, you still need coverage for your equipment, inventory, liability exposure, and business interruption. Your landlord's policy does not cover your business assets or protect you from lawsuits.
Sources
- MoneyGeek: Average BOP Cost (2025 Rates)
- Insureon: Restaurant Insurance Costs
- Progressive: Business Owners Policy
- MoneyGeek: BOP Insurance, What's Included (2026)
- InsuranceClaimHQ: Fire Damage Insurance Claim Guide
- Distinguished: Business Owners Policy for Restaurants
Last updated: March 9, 2026
Need help finding the right BOP for your restaurant? Latent Insurance Services is an independent brokerage that shops multiple carriers to find the best coverage at the best price. Get your free restaurant insurance quote or call us to speak with a licensed broker who specializes in restaurant coverage.