It takes a lot of finely tuned cogs to run a restaurant. Should one of those cogs break, the business could face problems. Think of the machinery you use in your restaurants every day. Stoves, refrigerators, ovens, grills, the list goes on. And this doesn’t include common building utilities like the HVAC and water systems. If one of these items breaks and is out of commission, it may create operational problems.
Following equipment damage, breakdown insurance might come in handy. It can usually help you repair or replace vital pieces of machinery. Doing so can help the restaurant recover from the problem.
Equipment Breakdown Insurance
Some restaurant owners assume that standard property insurance will protect them in case of equipment damage. Some policies do indeed provide this coverage. Yet, other property insurance might exclude certain equipment breakdowns, especially specialty equipment. To protect your restaurant’s most valuable equipment, consider investing in a reliable equipment breakdown policy.
Let’s say that a sudden power surge damages your refrigeration system. If the refrigerator doesn’t function, food could spoil. You therefore will likely have to throw out certain items and won’t be able to serve it to customers. You might even have to close because you can’t operate. This damage can lead to lost business costs. No business owners wants to lose money from an unavoidable accident.
In such situations, equipment breakdown insurance can often help. This coverage can help restaurant owners afford repairs or replacement to the equipment. Generally, it extends protection to multiple items like:
- Stoves, Ovens, Grills and other ranges
- Water heaters and boilers
- Refrigeration systems
- Electronic cash register systems
- Air conditioning
And various other common equipment found in your store. Your coverage might also help you make up for lost costs due to spoilage or a temporary closure. However, every policy varies. Make sure your equipment breakdown coverage extends to specific risks in your business.
In Case of Equipment Breakdown
It’s always a good idea to do everything you can to prevent equipment breakdowns in your restaurant. Use all of your equipment with care and according to manufacturer guidelines. If your equipment requires service and maintenance, don’t neglect these important tasks. Caring for your machinery can reduce the risks of breakdowns.
When a problem arises, shut down the system. Then, contact your business insurance company. Your insurer can then likely walk you through documenting the damage and making a claim. They can also advise you on how your policy specifically covers such damage. For more resources on restaurant insurance, our agency can provide advice.
If you have further questions about what business insurance you need, call Buschbach Insurance at 708.423.2350 or via email.
Check out some of our online resources that can help you better understand the risks and hazards you may face.
What to do When Burns Occur in Your Restaurant
Why Proper Food Handling is Important in an Illinois Restaurant