Flooded Cafe With Chairs, Tables And Potted Plants Floating On Water

April 18, 2023

What Is Business Interruption Insurance For Your New Hampshire Restaurant?

Who Needs New Hampshire Restaurant Business Interruption Insurance?

The short answer to this question is that any commercial restaurant business is a candidate. If you own a restaurant and can think of a scenario that could lead to a temporary interruption of the running of that business, then you need Business Interruption Insurance.

When is Business Interruption Insurance useful?

Restaurants may be forced to temporarily close their doors if any number of unfortunate events take place. Perhaps there is a failure in the bathrooms and the wastewater gets backed up. Maybe there’s a water leak that damages the furnishings in the restaurant dining room. Perhaps the kitchen is flooded and all the appliances have to be replaced. A car drives into the side of the restaurant. Issues like these would likely prevent a New Hampshire restaurant from opening for business for either a temporary or extended period of time. 

In themselves, all of the issues mentioned above will be covered by their own insurance: equipment breakdown insurance; property damage insurance; water, utilities, sewage insurance. When it comes to replacement or repair, if your New Hampshire restaurant has good, up-to-date insurance, you will be all set. But, your insurance policy will not cover the ongoing costs of operating your restaurant while it is closed. For that, you need Business Interruption Insurance.

What does New Hampshire Business Interruption Insurance cover?

If you are forced to close your Bow, Conord or Hookset, New Hampshire restaurant, the first hope is that the closure will be very temporary or short-lived. Assuming that you will be reopening soon, then part of your financial circumstances will continue, business as usual. All that is, except your income. Despite your restaurant being empty of customers, your overheads will continue. There will still be a mortgage to pay, permits, contractors, insurances, utilities to fund (albeit these last may be reduced if no one is dining in the restaurant), and employee wages to fund.

The insurance policies mentioned above—equipment breakdown insurance, property damage insurance; water, utilities, sewage insurance—will help pay for the cost of repair or replacement, but will not help with all the other costs, no one that is unless you have Business Interruption Insurance, also sometimes known as Business Income Insurance. Our top insurance agency in Bow provides commercial restaurant insurance

What is the waiting period before I can collect on my Business Interruption Insurance?

Depending on your commercial restaurant’s insurance policy, there will most likely be a wait time before the Business Interruption Insurance will pay out. Although there are exceptions, in most cases that period will be between 48 hours and 72 hours.  There will also be a maximum duration for policy coverage so you won’t be able to close your restaurant indefinitely and keep claiming on your Business Interruption Insurance.  Contact us to review your current New Hampshire business interruption or commercial restaurant insurance policy and to talk about options. 

Is the amount of coverage provided by Business Interruption Insurance variable?

You can tailor the coverage from your restaurant Business Interruption Insurance to fit your business. The premiums will be higher for the more coverage you require. Typical questions to ask when calculating how much coverage you need include:

  • Is temporary restaurant relocation an option?
  • what would the costs of this relocation be?
  • what are the employee wages that need to continue to be paid?

Business Interruption Insurance will not cover you for all eventualities leading to a closure of the restaurant—natural disasters, for example, such as hurricanes or earthquakes, will not be covered; nor will closure because of communicable disease, such as Covid. Business Interruption Insurance will not pay for everything when your restaurant is closed temporarily. However, it will go a long way to easing the significant financial burden.

We may be bias but we think Allied Insurance Agency is the best independent agency in Bow also serving Concord, Hookset and all of New Hampshire. Protecting your restaurant is our profession. Call today and let us make sure your restaurant is properly insured.

For more information on the best restaurant insurance coverage in New Hampshire, contact Allied Insurance Agency.

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