Understanding Restaurant Coverage: Equipment Breakdown.
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
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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