Order up! Brokers, your next course will be featuring our Business Owner’s Policy (BOP), prepared by our Restaurant experts. If you missed our recent webinar, “Business Owner’s Policy (BOP) for Restaurants: Protection from Prep to Plate,” don’t worry. You have the opportunity to gain key insights into our BOP offering and how Distinguished can help you better support restaurant owners. Access the full recording now!
Get the Business Owner’s Policy (BOP) for Restaurants session handouts here:
+ Slides
Below are some of the insightful questions from attendees during our session.
Eligibility & Appetite
Q: What types of restaurants are eligible?
A: Our Restaurant BOP program is available for the following restaurant segments:
- Limited-service restaurants (also known as “fast casual”): Customers order and pay at the counter. The food quality and ambiance are a step up from traditional fast food. Some locations may be takeout only.
- Casual/family restaurants: These offer full table service, typically close by 10:00 PM, have liquor sales of 25% or less, and are locally owned.
- Small to midsize upscale dining establishments: Less formal than traditional fine dining, these restaurants generally close by 11:00 PM and have limited liquor sales.
Note: Restaurants with a full bar may be a better fit for our Restaurant Package program.
Q: What are the ineligible risk characteristics?
A: Some common reasons for Restaurant BOP declination include, but are not limited to, the following:
- Liquor receipts over 25% (may be eligible for our Restaurant Package program)
- Ineligible entertainment including karaoke or trivia nights
- Non-sprinklered and TIV over $1M (may be eligible for Restaurant Package program)
Q: Are new ventures eligible for the Restaurant BOP program?
A: New ventures are not eligible for the Restaurant BOP program. Submissions must include at least one location that has been open for a year or more. Our Restaurant Package program accepts new ventures, and submissions may be sent to [email protected].
Q: Do you accept restaurants with multiple locations or small chains?
A: Yes, we do accept multi-location and small chain restaurants. Eligibility will depend on certain factors such as the business type and revenue.
Q: Will you consider restaurants with ancillary operations like catering or delivery?
A: When catering is performed for off-site events and staffed by restaurant employees, it is out of appetite. If catering involves only dropping food off and is incidental to the restaurant operation, we will consider it in the Restaurant BOP program. More robust catering exposures are considered in our Restaurant Package program.
Q: Will you consider a risk where food is cooked at one location and sold at another?
A: Possibly. More details would be required to underwrite.
Q: Will you write restaurants in resort areas where liquor receipts exceed 35–40%?
A: This would be ineligible for the Restaurant BOP but would be considered in the Restaurant Package program.
Q: Will you write BYOB establishments?
A: Yes, we will write BYOB establishments.
Q: Will you consider wine bars or establishments with high liquor-to-food sales ratios due to premium pricing?
A: The Restaurant BOP is not designed for establishments with high liquor-to-food ratios. A wine bar could be considered in our Restaurant Package program, but we still require that there be more food revenue than liquor.
Q: Will you consider restaurants that include wine manufacturing (done off-site)?
A: This exposure is ineligible for the Restaurant BOP and Package program.
Q: Are restaurants with wood-fired ovens, rotisseries, solid fuel cooking, tandoors, or shawarma machines eligible?
A: Yes, subject to individual risk underwriting. An inspection of the location may be required and the restaurant must comply fully with NFPA 96.
Q: In which states is the program available? Do restaurants need to be located in major cities?
A: We write the Restaurant BOP nationwide, except AK, HI, FL, NY. Our Restaurant Package program is available in all states except AK.
Restaurants can be located anywhere in the state keeping in mind that the protection class must be from 1-5.
Q: Is outdoor cooking or BBQ eligible?
A: No, outdoor cooking or BBQ is not eligible for our Restaurant BOP program.
Q: Are tabletop cooking restaurants eligible?
A: Tabletop cooking restaurants are not eligible for BOP. Hibachi restaurants specifically will be considered in our Restaurant Package program. Restaurants where customers are cooking their own food (e.g. hot pot or Korean BBQ) are not eligible for our Restaurant programs.
Q: Are restaurants with smokers or grills eligible?
A: Smokers are not eligible. Grills may be eligible depending on the type.
Q: What are your crime score requirements?
A: There are no specific crime score criteria, but we may utilize crime scores in our underwriting process.
Q: Will you write restaurants with mixed-use buildings or residential units above?
A: Yes, restaurants located in mixed-use buildings or with residential units above are eligible.
Q: Are properties in Tier 1 coastal areas eligible?
A: If a restaurant is located within 50 miles of the coastline in AL, GA, MS, NC, SC, and TX, it is ineligible for the Restaurant BOP but could be eligible for our Restaurant Package program. In other states, a wind deductible may apply to Tier 1 coastal locations.
Q: Are restaurants with food trucks eligible?
A: Food trucks are not eligible for our Restaurant BOP program. We are just starting to entertain food trucks in our Restaurant Package program.
Q: Will you write restaurants located within professional sports facilities?
A: No, we will not write restaurants located within professional sports facilities.
Q: What roof types are acceptable (e.g., are asphalt roofs a concern)?
A: Since our Restaurant BOP is designed for tenants and building coverage is not offered, roof type is not a specific concern. Risks that require building coverage should be submitted to our Restaurant Package program.
Q: Will you consider restaurants without sprinkler systems?
A: Yes, we will consider restaurants without sprinkler systems for all construction types except frame.
Note: TIV must be under $1M if not fully sprinklered, regardless of construction.
Q: Are there restrictions on building age or construction type?
A: Yes, buildings over 30 years old must have more recent updates.
Q: Are PC 9 frame buildings eligible?
A: No, eligible restaurants must be located in PC 1-5.
Coverage & Program Structure
Q: What is the difference between the Restaurant BOP and Package policy?
A: In addition to the differences in eligibility criteria as discussed throughout this document, our Restaurant BOP and Package policies differ with respect to some coverages. A couple of examples are:
- The BOP is designed for smaller risks and offers lower sub-limits on certain restaurant enhancements than the coverage limits available in our Restaurant Package program.
- The BOP offers business income coverage on an actual loss sustained basis, which is not available in our Restaurant Package program.
Q: What are your property and general liability deductible options?
A: Our Restaurant BOP deductible options are $1,000, $2,500 and $5,000 for property. We do not offer GL deductibles.
Q: Does Arch write both the Restaurant BOP and Package products?
A: Yes, Arch Insurance Company is the carrier for both products. All underwriting for both is performed by our experienced restaurant underwriters at Distinguished.
Q: What is your maximum Total Insurable Value (TIV)?
A:
- Non-sprinklered locations: $1M is the max TIV.
- Sprinklered locations: $5M is max TIV.
- $10M is the max TIV for all locations combined.
Q: What are the minimum and maximum annual revenue limits?
A: Minimum is $250K and maximum is $5M in total.
Q: What is the maximum limit you offer for contents coverage?
A: The maximum TIV per location is $5M. There is no separate maximum for contents (BPP).
Q: Do you provide coverage for building owners or only tenant-occupied risks?
A: Restaurants that require building coverage will be considered in our Restaurant Package program and are not eligible for the BOP at this time.
Q: Is there a threshold or maximum percentage allowed for liquor sales? Is 25% a hard limit, or is there flexibility?
A: Typically, restaurants with liquor sales over 25% are going to be a better fit for our Restaurant Package program. If sales are only slightly over 25%, we may consider an exception subject to additional underwriting information.
Q: Will you offer an umbrella product?
A: We offer a $1M excess policy over our Restaurant BOP. We also offer $2M/$4M GL limits as part of the primary Restaurant BOP. If a risk requires higher limits, we have a monoline umbrella product that will sit over our BOP with limits from $5M to $125M.
Q: Do you offer liquor liability coverage, including host liquor liability?
A: Our Restaurant BOP policy is designed for restaurants that have liquor sales of 25% or less. We do not write host liquor.
Q: Do you cover tenants, betterments, and improvements?
A: Yes, tenants, betterments, and improvements should be included in the Business Personal Property (BPP) limit when entering information in the portal.
Q: What are the liquor liability coverage limits, and are there sub-limits?
A: Liquor liability limits are $1M/$2M. There are no sub-limits.
Q: Can you provide excess liquor liability or umbrella coverage over liquor liability?
A: Yes. We offer a $1M excess policy over our Restaurant BOP, including liquor liability coverage. We also have a monoline umbrella program that will go over our Restaurant BOP that starts at a limit of $5M and goes up from there.
Q: Do you offer cyber liability coverage on the Restaurant BOP?
A: Data Breach is available as optional coverage. We also have a robust Monoline Cyber program that can be quoted alongside our Restaurant BOP.
Q: Are assault & battery exclusions present in the policy?
A: Our Restaurant BOP policy does not exclude assault and battery.
Q: Do you offer Hired and Non-Owned Auto coverage? If so, when is it offered and can it be added for delivery operations?
A: Yes, hired non-owned auto coverage is included in our Restaurant BOP policy, provided that any delivery is performed exclusively by a third-party vendor such as Grubhub or UberEats. If delivery is performed by restaurant employees, hired and non-owned coverage will not be available through the Restaurant BOP or Package programs.
Supplementals & Submission Process
Q: How do I submit business?
A: Submit a Restaurant BOP application directly on the Broker Connect portal. We’ll review and respond within 24-48 hours.
Q: Is there a specific supplemental application for the restaurant BOP, or can brokers use standard ACORD forms?
A: Distinguished’s Restaurant BOP policy is available exclusively on the Broker Connect portal. There are no supplemental applications or ACORD forms.
Q: How many years of loss runs are required?
A: This varies with the size and type of risk. We may require up to 4 years of currently valued loss runs for certain accounts while others may not require any loss runs.
Q: What is the commission rate for new and renewal business?
A: 12% for BOP and 10% for excess (applies to both new and renewal business).
Q: Are audits conducted? What is the rating basis?
A: We do not audit our Restaurant BOP policies.
Q: Who should I contact if I have additional questions?
A: If you have additional questions, please contact:
Heidi Strommen
President, Primary Hospitality
[email protected]
Telephone: (952) 924-6973.
For submission or underwriting questions, feel free to email [email protected].
Expert Panel
Christine Lind, Restaurant BOP Program Underwriter, Distinguished Primary Hospitality
Christine brings more than 30 years of expertise in the insurance industry, starting her career as an Account Manager and progressing to underwriting commercial package policies. In 2025, she joined Distinguished as an Underwriter for our newly launched Restaurant BOP program. Christine lives in North Idaho with her husband and two Jack Russel Terriers. In her free time, she enjoys gardening, camping, and crocheting.
