Restaurant Insurance: Are Grease Fires Covered

In a restaurant, fires are a large risk. Fires, especially grease fires can be costly and dangerous. In 2002 there were more than 7,000 fires resulting in structural damage to restaurants. This amounted to more than $116 million worth of damages. 

Of these fires, about 65 percent of them came from cooking accidents. There is little doubt this is one of the largest dangers and biggest risks for even small restaurants. 

If a cooking fire occurs, will your restaurant insurance provide you with financial protection?

When a Fire Occurs

Whenever a fire occurs, your first step should be to get emergency help. After things settle down and everyone is safe, call your restaurant insurance agent. He or she will work with you to determine what your business needs at that moment. 

If you have the right business insurance in place, you may have comprehensive coverage for the structural damage, any general liability concerns, business interruption coverage, and equipment coverage. Insurance may cover the contents of your restaurant, such as computers, inventory, and furnishings.

The Cause Can Matter, Though

You may not have purposefully started a fire. But, some grease fires occur as a result of neglect or lack of maintenance. For example, you may not have had your hoods cleaned in some time. You may not have proper exhaust systems in place. You may not have removed excess grease from the equipment before using it. 

Most of the time, any type of excessive grease creates an incredible risk of fire. If the insurer determines that the cause was a result of significant negligence, you may not get the payout.

What should you do? Start by buying a comprehensive restaurant insurance policy. This can provide complete financial protection should a fire occur at your establishment. 

Second, make sure you maintain your equipment and clean grease away on a regular basis. Keep proper documentation of any cleaning you do as well as all service appointments. This can establish that you provided proper and complete care for your building.

This means that you tried to minimize these types of grease-related fire risks. Without that type of documentation, you may have trouble filing a claim for this type of instance.