Restaurant Claims

Restaurant Business Income Loss

With a restaurant property insurance claim, there is also typically a business income loss. Getting your restaurant back up and running may take years. Check your insurance policy to ensure you’re collecting what is rightfully owed to you.

In one instance, a restaurant was shut down due to civil authority ordering an evacuation. The claim was denied due to the lack of physical damage to the building. Because the business had the proper endorsement of the policy, they received coverage for the income loss because the storm had caused physical damage elsewhere and civil authority ordered the evacuation. The business did not have to suffer “direct physical loss” because they required that the policyholder be prohibited from access to the premises due to direct physical loss of or damage to property, other than at the “covered premises.”

Restaurants, food stores, and food brokers should also purchase Spoilage Coverage. This provides for losses caused by power outages on or off premises with the following language: “power outage,” meaning change in temperature or humidity resulting from complete or partial interruption of electrical power, either on or off the described premises, due to conditions beyond your control. Power outages are a common and significant threat to businesses.