A Guide to Delaware BOP Insurance for Business Owners
Whether you run a tech startup in Wilmington or a bakery in Rehoboth Beach, Delaware BOP insurance is a smart way to protect your business from everyday risks. A Business Owner’s Policy (BOP) combines several types of coverage into one streamlined plan, making it both practical and affordable for small and midsize businesses across the state.
This guide explains what a BOP includes, how it complements Delaware’s legal requirements, and real-life claims examples.
Who Needs a Business Owners Policy in Delaware?
While Delaware does not mandate BOP coverage by law, it does require other specific insurance policies. A BOP provides essential liability and property protection but must be paired with these required coverages.
Legally Required Insurance (Sold Separately from a BOP):
- Delaware Workers’ Compensation Insurance: Required for any business with at least one employee—full-time, part-time, or family member. Sole proprietors and partners without employees are generally exempt unless they elect to provide coverage voluntarily.
- Requirement: Delaware Commercial Auto Insurance is mandatory for any business that owns or operates vehicles.
- Minimum Liability Limits (25/50/10):
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $10,000 for property damage
- Mandatory Personal Injury Protection (PIP) Coverage:
- $15,000 per person
- $30,000 per accident
- Governing Statute: These requirements are stipulated by Delaware Code Title 21, Section 2118.
What a Delaware BOP Covers
A standard Business Owner’s Policy that Delaware companies rely on typically includes:
- General Liability Insurance: Covers claims of third-party injury or property damage. Example: A customer slips at your Dover boutique and sues for $10,000.
- Commercial Property Insurance: Protects your building, equipment, and inventory against fire, theft, or storm damage.
- Business Interruption Insurance: Replaces income lost because of a covered shutdown. Example: A fire forces a 4-week closure of your Wilmington salon.
Important Note: Standard BOPs exclude flood damage. Businesses in coastal or flood-prone areas need a separate flood insurance policy. You can also explore ways small businesses can lower insurance costs without sacrificing protection.
Common Claims & Risks for Delaware Businesses
The most common claims under BOP insurance include:
- Slip-and-Fall Injuries: Particularly common in icy seasons and high-traffic retail zones.
- Theft and Vandalism: Targeting small retailers or food businesses, causing property loss and business interruption.
- Storm Damage: Nor’easters can damage inventory, roofs, and signage, triggering property claims.
- Cyber Attacks: While covered by a separate policy, the financial fallout from a data breach is a major risk for clinics and law firms across the state.
BOP Costs and Pricing Factors in Delaware
Costs vary, but most small businesses can expect to pay $500–$2,500 per year for a BOP.
Key factors influencing your cost:
- Location: Lewes and other coastal towns often carry higher property insurance premiums.
- Industry: Riskier sectors like food service or construction cost more than a professional office.
- Building Age & Safety: Modern structures with safety features like sprinklers may see lower rates.
- Bundling: Pairing your BOP with other policies can often reduce your total premium.
Claims Process & Regulatory Compliance in Delaware
If you experience a loss, follow these steps:
- Notify your insurer immediately.
- For Workplace Injuries: You must file a First Report of Injury with the state and your insurer within 10 days.
- Document all losses with photos, receipts, and official reports.
- Cooperate fully with the claims adjuster’s investigation.
The Delaware Department of Insurance oversees claim disputes.
Penalties for non-compliance with Delaware insurance laws can be severe:
- Failure to maintain Workers’ Compensation insurance may result in misdemeanor charges, fines, stop-work orders, and personal liability for injury costs.
- Commercial auto insurance violations can lead to fines starting at $1,500, with higher penalties possible for repeat offenses, as well as a mandatory suspension of vehicle registration for up to six months or longer, subject to administrative discretion
Bottom Line for Delaware Business Owners
A Business Owner’s Policy is a practical shield against lawsuits and disasters. However, it must be part of a complete insurance plan that includes legally required coverages like workers’ compensation and commercial auto.
Need help finding the right coverage? Call us at 855-718-7552
