Business Interruption Insurance for Restaurants

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Unexpected events like fires, storms, or equipment breakdowns can disrupt your restaurant’s operations and lead to significant financial losses. Business interruption insurance is critical protection, providing coverage for lost income and expenses when your restaurant faces temporary closures.

What Is Business Interruption Insurance?

Business interruption insurance provides financial support when your restaurant is forced to close temporarily due to a covered event, such as a fire or natural disaster. This coverage compensates for lost income and helps pay for ongoing expenses, ensuring your restaurant can recover and reopen without financial strain.

What Does Business Interruption Insurance Cover?

Business interruption insurance offers a range of protections to help restaurants manage the financial impact of temporary closures. Here’s what it typically covers:

Category	Description
Lost Revenue	Compensates for the income your restaurant would have earned during closure, based on historical data.
Ongoing Expenses	Covers fixed costs like rent, utilities, and payroll to retain key employees and maintain vendor relationships.
Relocation Expenses	Covers costs of temporarily relocating, including moving equipment and setting up a new operational site.
Loan Payments	Assists with repayments for equipment leases or business loans during periods of disrupted income.
Taxes and Licensing Fees	Covers essential obligations like property taxes and licensing fees that remain due during closures.

What’s Typically Not Covered?

While business interruption insurance provides extensive protection, there are limitations to what it covers. Common exclusions include:

Exclusion	Description
Pandemics	Many policies exclude coverage for losses caused by viruses or government-mandated closures.
Undocumented Income	Losses must be verifiable through financial records to qualify for coverage.
Utilities and Repairs	Direct repair costs for property or equipment are covered by property insurance, not business interruption.
Intentional Acts	Losses resulting from intentional damage or fraud are excluded from coverage.

Business Interruption Insurance Costs for Restaurants

The cost of business interruption insurance for restaurants depends on factors like your revenue, location, and the value of your assets. Here’s a general breakdown:

Average Costs

Small Restaurants: $500–$1,500 annually.

Mid-Sized Restaurants: $1,500–$5,000 annually.
Large Restaurants: $5,000+ annually.

If you want to get an exact quote, feel free to get in touch with our sales agents.

Other Insurance Policies to Consider

Business interruption insurance works best when paired with other key restaurant insurance policies, such as:

Commercial Property Insurance: Covers damage to your building, equipment, and inventory that may cause business interruptions.
General Liability Insurance: Protects against third-party claims of bodily injury or property damage.

Liquor Liability Insurance: Protects against alcohol-related claims for restaurants serving liquor.
Workers’ Compensation Insurance: Covers employee injuries and lost wages.

Get Business Interruption Insurance Quotes

If you want policy advice or an exact cost for your family restaurant, we encourage you to get in touch with our agents today.

We understand restaurant insurance and the immense risks they take when they provide their necessary services. Our agents can reduce policy prices through additional discounts of 10% to 15% from the instant quotes you receive, so please take the time to call us to review your quotes.

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