Restaurant Insurance – Equipment Breakdown Insurance
Restaurant Insurance is one of our areas of specialty at County Insurance Group. We provide access to a number of Insurance carriers that enables us tailor a policy that is most applicable to our restauranteurs needs. Affordable Commercial Insurance Coverage that meets our policyholder’s needs is what we do best. The policy is broad and one particular area that we would like to shed some light on is the Equipment Breakdown Coverage of the Restaurant policy.
When equipment is working, we take it for granted. But when something breaks down, things can quickly grind to a stop. For example
- A power surge could damage your computer network
- Your electrical system could short circuit, causing your business to shut down temporarily
- An employee error might damage your only production machine
Well, Let us discuss what Breakdown Insurance Covers
It is also known as “boiler and machinery” insurance. Equipment breakdown coverage protects against breakdowns caused by power surges, motor burnout, boiler malfunction and operator error. It covers all sorts of equipment, including new technology.
Mechanical breakdown coverage covers mechanical and electrical equipment, computers and communication equipment, air conditioning and refrigeration systems, boilers and pressure equipment.
Equipment breakdown coverage can pay for:
- The cost to repair or replace the damaged equipment
- Costs associated with the time and labor to repair or replace the equipment
- Business income losses when a covered breakdown causes a partial or total business interruption
- Other expenses incurred to limit loss or speed restoration
- The cost to replace spoiled stock or materials
Equipment Insurance for Restaurants
Many of our policyholders ask, What if you don’t own your building?
Well, even if you lease your building or use equipment that belongs to others, you still need equipment breakdown insurance.
Let’s say you run a restaurant in a leased space, and the electrical panel shorts out, killing power to the heat, air conditioning, lights and refrigerators for a couple of days. Although the owner of the building is responsible for making the repairs to the panel, you’ve lost customers and income. Equipment breakdown insurance helps pay for that lost business income.
What if an equipment problem off site impacts your business?
Sometimes, equipment breakdowns at other locations can cause significant losses to your business. Most standard property insurance policies do not provide insurance for equipment breakdown, and warranties cover only so much.
Warranties are restrictive, and typically cover new equipment for a determined length of time, and for specific types of product failures. Also, warranties don’t pay for lost business income or equipment damage due to operator error, the cause of many equipment breakdowns.
It is time to dust off your current policy and give us a call or visit us to discuss your coverages. Restaurant Insurance is important to the success of your business.
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