What happens if a tornado rolls through town and demolishes your restaurant? What happens if a vandal runs his car through your front window? Or what if a pipe bursts and floods your kitchen, destroying floors, walls, and valuable equipment? Unfortunately, most business owners are one storm, accident, or theft away from bankruptcy and ruin. Fortunately, commercial property coverage can protect you from property damage in case disaster strikes.
Commercial Property Insurance Protection: The Basics
If you want to protect your business against interruptions and losses, you need a robust insurance policy. From hurricanes to kitchen fires, from Mother Nature to local vandals, the risks are many and diverse. That’s why business owners and entrepreneurs rely on insurance policies to cover their property in the event of a catastrophe.
Any large or small business, whether it consists of a few computers or a dozen buildings, should arm itself and its assets with commercial property insurance. Food and hospitality establishments, in particular, should never be without property coverage since these are the areas most prone to unfortunate, complicated incidents.
What Is a Covered Event?
Commercial property insurance for restaurants and bars typically comes in two varieties. You can either purchase named perils coverage, which insures you solely against a list of perils specifically laid out beforehand, or open perils coverage, which insures you against all events that aren’t specifically excluded.
In either case, you should know what types of events your policy covers. Most property insurance covers losses related to the following:
| Cause of Loss | Description | Example |
|---|---|---|
| Natural Disasters | Natural disasters can devastate a business, destroying property and causing long-term business interruption. | May cover the cost of property damage and business interruption resulting from a flood, tornado, hurricane, wildfire, etc. |
| Equipment Breakdown | Restaurants, bars, nightclubs and other hospitality establishments rely on equipment like refrigerators, freezers, ovens, and dishwashers that can sometimes malfunction or break down. | May cover repairs if a broken dishwasher floods the kitchen and destroys the floors |
| Accident | Accidents happen. As long as they’re not attributable to employee error, your insurance policy will cover the costs of repairs related to the accident. | May cover repairs resulting from a kitchen fire that destroys business property. |
| Spoilage | Some types of policies also cover perishable stock that’s kept on the premises of the business. | May cover lost revenue that results from a refrigerator breakdown or a power outage that leads to food spoilage. May also cover food contamination in some cases. |
| Criminal Activity | Criminal activity can be as destructive as any natural disaster. Property insurance also covers you in the event of human-caused devastation. | May cover the cost of windows and signs destroyed by a vandal, or the cost of computers stolen by a thief. |
What Does Your Policy Cover?
In addition to knowing what type of events your policy covers, it’s important to know what types of losses can be compensated. Most commercial property insurance for bars and restaurants covers the following:
- Building: Property insurance covers the cost of repairing or reconstructing the physical building itself if damage has occurred.
- Business Property: Property coverage not only insures buildings but everything in them, as long as the items are bought by the business for the purposes of the business (e.g., tables, chairs, kitchen equipment, dishes, silverware, computers, cash registers, etc.).
Inventory: Many commercial property policies will also cover the costs of perishable or non-perishable inventory.
Business Interruption: Property damage can also lead to business interruption and lost income. Many policies will reimburse your business for operating and payroll expenses while repairs are ongoing.
How Much Will Insurance Set You Back?
The cost of insurance depends mainly on the location and type of business. Since there are so many variables involved, it’s difficult to give a general figure. That being said, policies can range anywhere from $500 per year for a small business to $500,000 per year for a large corporation. If you want a more accurate quote, fill out our simple questionnaire to receive a FAST online quote.
Is It Time to Insure Your Property Against Damage?
Are you ready to get serious about protecting your property? Tabak Insurance Agency is here to help. Our insurance company specializes in providing coverage to restaurants, bars, nightclubs, and other hospitality businesses. We know the unique risks you face, and the specific policies you need to stay up and running. Contact our experienced agents to learn more about how you can [protect your business, minimize your exposure to risks, and keep things running smoothly.
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