Business owners in the restaurant and hospitality industry often need to juggle many areas of their businesses in order to keep their customers satisfied and loyal. Like any intricate machine, the mechanics of a restaurant’s daily operations can quickly be derailed by a small problem, leading to a massive income drop in a surprisingly short time.

Equipment Breakdown Insurance, once only of concern to industrialists and other manufacturers, is fast becoming a staple of good restaurant and hospitality insurance coverage plans. For many restaurants and related businesses, equipment breakdown insurance can be an absolutely crucial.

With the degree of automation found in modern commercial kitchens, even minor problems have the potential to seriously disrupt business. Something as simple as kitchen exhaust fans becoming unbalanced can quickly spiral into a massive problem. If an unbalanced fan shakes and causes the bearings to burn out, the fans may shut down. In a busy commercial kitchen, exhaust fans are often of major importance, and its breakdown can allow the kitchen’s temperature to rise to levels that create unsafe working conditions. Until repairs can be made, a kitchen with no fans may need to close down temporarily. With no kitchen, the restaurant would obviously have to temporarily close down as well, hemorrhaging profits.

Fortunately, if a restaurant insurance policy includes equipment breakdown insurance, the entire closed kitchen debacle can be easily salvaged. Equipment breakdown insurance covers the cost of repairing the defective equipment and loss of income caused by the breakdown.

Restaurant insurance shoppers should be wary of the fact that the majority of commercial property insurance plans do not automatically pay for accidental equipment breakdowns or other technical difficulties, including electrical troubles. More importantly, they don’t automatically cover any loss of income brought on by these events.

In order to cover these situations, a restaurant insurance quote should include equipment breakdown insurance.

Equipment breakdown insurance quotes are now tailored to meet the needs of the restaurant and hospitality industries by focusing on:

• Mechanical equipment malfunctions
• Power surges
• Short circuits
• Repairs
• Lost income due to equipment breakdown
• Costs racked up by renting substitute equipment while repairs are underway
• Loss of food products due to spoilage in cases of refrigerator and freezer malfunctions.

The problems listed above are typically not covered by normal business insurance, which is why it’s useful to have your business insurance and equipment breakdown insurance quoted with each other by a restaurant insurance professional. This will ensure any gaps in your restaurant insurance coverage are filled.

In addition to covering the mechanical aspects of the kitchen in case of an emergency, equipment breakdown insurance can also be extended to any device deemed important to the successful day-to-day operations of a restaurant, such as:

• Grills
• Stoves
• Fans
• Dishwashers
• Refrigeration units
• Air conditioners
• Heaters
• Computer networks
• Electronic point-of-sale systems
• Inventory scanners
• Cash registers
• Employee time

Equipment breakdown insurance allows restaurateurs to not only replace any of this equipment at no cost if it malfunctions, but also to recoup any lost profits that occurred as a result.

As an example of equipment breakdown insurance’s importance, consider this situation:

A mid-sized restaurant that is forced to shut down for a period of two days due to a electrical malfunction in the kitchen can easily lose in the neighborhood of $25,000 income during that time. With an equipment breakdown insurance policy, that $25,000 is assessed as a business interruption cost, and is repaid to the owner.

In light of that information, a business owner really can’t afford not to opt for equipment breakdown insurance.

Getting Started

If you own a restaurant or related business and you’re not sure about your level of protection, your first step should be to review your property insurance and determine if it already includes equipment breakdown insurance.

Double check to make sure that any and all equipment necessary to carry out daily business is covered. Depending on your insurance agent, equipment breakdown insurance can either be added to your existing plan or purchased as a separate policy.

Remember, your restaurant’s kitchen equipment and other operating devices play a critical role in maintaining your customers’ satisfaction. By protecting your business investment with equipment breakdown insurance, you can be sure that you’re investing in your own future.

Call us today for a free analysis and restaurant insurance quote or equipment breakdown insurance quote.