The Importance of Equipment Breakdown Coverage for Restaurants

The Importance of Equipment Breakdown Coverage for Restaurants

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Mandatory Equipment Insurance for Food Industry Establishments

When you work in the food industry, fast-paced is the norm – and you’ve got to learn to adapt quickly to changes in the menu, difficult customers, altercations with the employee schedules and any other last minute problems that could arise. Any vetted restaurant owner or manager can usually handle these dilemmas with ease, but there’s one issue that typically brings on panic with no relief: Equipment breakdown. Since so many people who own and operate food restaurants, bars, cafes and catering companies are not experienced enough to fix broken equipment that they need to run their business on a daily basis, it’s necessary to invest in equipment breakdown coverage to keep their eateries afloat.

Potential Equipment Breakdown Problems

There are quite a few reasons why equipment breakdown coverage is a crucial element that every restaurant needs, all identified by possible situations that could occur with the equipment. Since today’s day and age is fueled by technology, the food industry is no different – whether it’s an electronic punch-card system for employees, a computer that allows waiters to print and pay for customers’ meals or a digital seating chart that is accessible by tablet. This technology could breakdown or glitch at any given moment, regardless of how new it is – and since so many of these technological pieces of equipment can be transported from place to place, it’s possible that a breakdown could occur where there is no traditional property or casualty coverage. A power surge that results in a destroyed computer network, an electrical system short circuit and a simple employee error that damages a machine are other possible threats. Additionally, the malfunctioning or broken piece of solid equipment, such as a boiler, refrigerator system or air conditioning unit, are also possible threats to a business, and a large reason why every restaurant should invest in equipment breakdown coverage.

Equipment Breakdown Insurance: What it Covers  

Just because a food industry establishment has commercial property insurance, doesn’t mean that equipment breakdowns are covered. In most cases, equipment breakdown coverage must be asked and paid for at an additional cost. Generally speaking, a fair and beneficial equipment breakdown insurance plan covers the costs to repair or replace broken equipment; the cost for the work it took to repair the damaged equipment; income loss that a business suffered through, if the equipment breakdown partially or completely caused the interruption; the price of any replaced materials, and any other expenses that accrued to speed up the restoration process while the equipment was broken. Because the food industry is so dependent on technology, “new technology” has been added to most equipment breakdown insurance policies across the board. Oftentimes, food industry owners and operators question just how much they need to spend on equipment breakdown insurance – when doing so, it’s important to look at all the potential mishaps that can occur with their equipment, be it electronic or otherwise.

Successful and Insured Food Industry Establishments

Electronic or otherwise, it takes an army of equipment to operate a restaurant or any other type of food establishment from day-to-day. These behind-the-scenes machinery items make the entire process happen, from the time a customer walks in the door until they’re finished eating their meal. Bottom line: When a machine malfunctions or stops working, the entire restaurant has the potential to shut down. Food industry workers who invest in equipment breakdown insurance aren’t just protecting their equipment – they’re protecting their livelihood, and the heart and soul of their daily business operations. Although equipment breakdown insurance used to only cover large manufacturers, policies have become widespread – even to smaller restaurants and other lesser known businesses.

Contact a Professional to Inquire About Equipment Breakdown Insurance

Purchasing equipment breakdown insurance is a serious process. If you want the best coverage, confiding in Restaurant Programs of America – a full-service insurance agency that specializes in restaurants – is a sure way to receive the best policy available. In addition to equipment breakdown insurance, we also offer other services to our food industry clientele that are worth looking into. Please contact us by calling 866-577-7007 to learn more.

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