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Understanding Restaurant Coverage: Equipment Breakdown.

Posted 10/4/2019


Restaurants have a significant investment in kitchen and cooking equipment – from walk-in fridges and freezers to ovens and stoves, grills, kettles, steamers and microwaves – to general equipment such as hot water heaters and boilers, air conditioning, a heating system, dishwashing equipment, and electronic cash register/POS systems for orders and payments. When a major piece of equipment fails, this can lead to significant losses for a restaurant owner if the proper insurance isn’t in place. 

For example, arcing can cause damage to an electrical panel, as well as completely shut down a restaurant’s operation. In addition, fragile technologies today make computer-generated machinery susceptible to electronic damage due to electrical surges, sags, etc. The cost to replace these machines can be expensive…and even if the equipment may not cost a lot to repair, the cost in terms of lost revenue adds up quickly.

  • Short circuit
  • Electrical arcing
  • Power surges
  • Mechanical breakdown
  • Motor burnout
  • Operator error
  • Boiler damage
It can also cover lost business income or spoilage due to an equipment breakdown and your extra expenses incurred to limit the equipment damage and facilitate repairs. In addition, our program includes inspection services of boilers and pressure vessels required by many states and local governments; this enables you to avoid local fees in many jurisdictions and pay only the certificate fee.


Refrigeration, air conditioning, and electrical equipment (breakers, wires, panels) are the most common equipment breakdowns and causes. For example, a restaurant seating 160 people had to shut down for two days after a utility brown out caused electrical arcing and damaged the main breaker switch, air conditioning and refrigeration compressors. The total loss was $31,682, including $25,000 in business interruption. Equipment Breakdown coverage covered the loss.

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