Water damage is often one of the most potent instances of property loss that any business owner can face.
If your restaurant sustains water damages, you could lose time and money because you have to make repairs. There are many different instances where water damages could affect a restaurant.
When water damage occurs, you often have to use insurance to repair the business. These may include commercial and personal property coverage, appliance coverage, flood insurance, and business interruption insurance.
Property Coverage: If you need to repair your restaurant’s structure, this coverage will protect you in certain cases. Property damage usually only covers water damages from unpreventable accidents like burst pipes.
Flood Insurance: Usually, floods do not have coverage under traditional property insurance. Weather-related flood damage is in an insurance category all on its own. If you live in a high-risk flood area, you may need to purchase flood insurance.
Personal Property Coverage: Personal property coverage can help protect the restaurant's items. These may include utensils, some food items and certain appliances. Most restaurants purchase commercial insurance that includes personal property coverage.
Appliance Coverage: At times, your standard commercial insurance may not have enough coverage to fully replace the most expensive appliances in your kitchen. Certain industrial appliances may come with separate insurance policies. If you buy appliances and include these policies, you may be able to fully replace them.
Business Interruption Insurance: Water damages may inhibit your ability to operate the business. If that is the case, you will likely have to shut down temporarily while you make repairs. Shutting down could lead to lost inventory and drain your finances. Business interruption coverage can help you pay the bills and your employees until you reopen.
Preventing Water Damage in Your Restaurant
Because water damages are such a risk, do everything you can to protect the restaurant from ever experiencing this problem.
- Have your water pipes inspected by a professional regularly. Professional inspections can detect small corrosion and other problems that may lead to leaks, breaks and other problems that could cause spills.
- Ensure that you don’t dump food or other items down your water pipes. Clogs could easily lead to leaks and breaks. Regularly flush your water pipes to ensure they stay clear.
- Check appliances that may spring leaks. Refrigeration systems, drink carousels, sinks, and dishwashers could easily cause water damage. Operate these systems appropriately. Take them out of order if they cause problems.
If any unforeseen water damages occur, clean them up immediately and isolate the problem. Call a professional to diagnose and repair the damages. If there is significant damage, call your restaurant insurance agency to find a course of action.
Buschbach Insurance can help you get a fast, free restaurant insurance quote. Call us at (708) 423-2350 for more information.