| Independent restaurants operate in an extremely | | | | If I do have a loss that closes my business or |
| competitive environment. You work hard to | | | | damages my reputation will my insurance cover |
| attract customers to your establishment and | | | | any loss of income I sustain after I reopen and |
| even harder to entice them to return. It takes | | | | how long will the insurance company continue to |
| time and effort to train and develop the right | | | | pay |
| staff that will represent your brand the way you | | | | How long will the insurance company continue to |
| intend. | | | | cover my ordinary payroll expenses during the |
| Aside from serving good food, your most | | | | period of restoration and after I reopen |
| valuable assets are your employees, your | | | | Does my policy include coverage for my |
| reputation, and the character and ambience your | | | | employees tips during the period of restoration |
| restaurant provides. | | | | and after reopening and for what period of time |
| Purchasing property insurance to cover your | | | | Will my policy pay for advertising cost to attract |
| assets such as your building and business personal | | | | customers back to my business after I reopen |
| property are a fairly straightforward process. | | | | Does my policy offer any protection for my loss |
| The same is not true when it comes to business | | | | of income if my reputation is damaged due to a |
| income coverage. As a restaurant owner you | | | | crisis event such as food contamination |
| need to give some serious consideration to | | | | Will my policy pay for the services of a public |
| protecting perhaps your most important asset: | | | | relations firm to assist me in dealing with the |
| the revenue stream that comes from your daily | | | | media to preserve and restore my reputation |
| operations. | | | | Is there a waiting period before my business |
| Some insurable exposures that can cause a | | | | interruption coverage begins to pay |
| business income loss: | | | | What if my key supplier has a property loss and |
| - Equipment Breakdown | | | | cannot deliver the goods I need to operate my |
| - Property Loss | | | | business |
| - Power Service Interruption | | | | What if a neighboring business who drives clients |
| - Income Support Property | | | | to my doors is shut down or a civil authority |
| - Special Event Cancellation | | | | prevents access to my premises due to direct |
| - Food Contamination | | | | physical loss or damage to a neighboring property |
| - Civil Authority | | | | Will my policy pay for direct damage from |
| - Violent Acts | | | | electrical disturbances and other perils typically |
| You purchase insurance to transfer the risks that | | | | excluded by my property policy to the equipment |
| you cannot afford to take yourself. You trade a | | | | I rely on to operate my business and the resulting |
| liquid asset today for the insurance companies | | | | loss of income |
| promise to pay in the future. You expect that if | | | | Look for business income insurance provisions: |
| you have a serious loss the insurance company | | | | That do not contain a co-insurance clause |
| will be there to restore your business and provide | | | | That do not have a waiting period of greater than |
| the funds you need to get back on your feet. | | | | 24 hours, if any |
| There are some potentially devastating | | | | That will pay for your continued loss of income |
| inadequacies in what many restaurant owners | | | | after reopening for at least 60 days |
| have in terms of coverage when it comes to | | | | That will pay your advertising cost including the |
| insuring their business income. | | | | cost of a crisis management firm to help restore |
| Restaurants rely upon many elements to maintain | | | | your reputation |
| their business operations and many policies do not | | | | That covers power interruption and equipment |
| cover or provide very limited coverage for direct | | | | breakdown with no limitation on the distance to |
| damage and loss of business income when it | | | | the source and which includes damage to |
| comes to equipment breakdown or utility service | | | | overhead transmission lines |
| interruption to: | | | | That covers food borne illness during and after |
| Computer systems including POS | | | | the event with adequate limits |
| Refrigeration | | | | That covers income support properties and action |
| HVAC and cooking equipment | | | | by civil authority |
| Lighting and sound systems | | | | That covers off premises special event |
| Water and communication lines | | | | cancellation |
| Fire Detection Systems | | | | That will pay for your server's tips during a |
| Electrical Distribution Systems | | | | closure and after reopening |
| Security Systems | | | | A thorough review of your business income |
| Restaurants operate on a very thin margin. Any | | | | coverage provisions and how your policy will |
| interruption of business, damage to your | | | | respond to 1st party claims is essential to |
| reputation or loss of business once you have | | | | protecting your property and the revenue stream |
| reopened can have a devastating impact on your | | | | your restaurant produces. Don't wait until after |
| bottom line. | | | | you have had a loss to find out what is actually |
| Some questions to ask yourself when reviewing | | | | covered by your policy. |
| your policy: | | | | |