Why Restaurant Business Interruption Insurance Matters

Restaurants can be exciting and rewarding business ventures, but they also often entail fast-paced environments with many potential risks and perils inherently present. Hot surfaces, sharp utensils, wet floors and food spoilage can lead to significant issues, with diners and guests potentially creating distractions and obstacles. Given these conditions, you should be fully aware of various loss control measures your restaurant may need, such as business interruption insurance.

What Is Business Interruption Insurance?

This type of coverage, also known as business income insurance, is among the most common and essential types of insurance for many companies across various sectors. It may be especially important for restaurants, as it can make all the difference in allowing your business to manage the aftermath of incidents from which its normal operations are disrupted, such as if you’re forced to close temporarily.

Business interruption insurance functions similarly to many other insurance products. In exchange for your regular (e.g., monthly) premiums, you retain the right to file a claim for financial assistance following covered incidents. If approved, your policy may pay out funds and assist with ongoing expenses and financial losses.

What Does My Policy Cover?

A business interruption insurance policy may vary in its exact capabilities and limitations. Generally, you may be able to receive aid following many common incidents, such as fires, certain natural disasters, vandalism and explosions. In the wake of these situations, the right coverage may help with the following:

• Ongoing bills, such as rent, loan payments and taxes
• Income you would have earned had you been able to operate normally
• Relocation costs, such as if you need to move to a new or temporary location
• Employees’ wages
• Training costs, such as if your staff needs to learn to use new machinery or equipment

How Can I Get Coverage?

Business interruption insurance may be available as a standalone policy or as an endorsement added to your commercial property insurance policy. You should strongly consider enlisting the assistance of a qualified insurance professional to assess your circumstances and identify ideal coverage options.

We’re Here to Help

Contact Liberty Choice Insurance today to learn more about business interruption coverage or get a personalized quote for your restaurant.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.