Sewage back-up, water-pressure interruption, electricity or gas outage… any and all of these can lead to serious problems and often the temporary closure of a restaurant. But, if you have business interruption insurance you’ll be covered, right? As part of an overall restaurant insurance policy water, utilities and sewage insurance could be important.

Partially, yes, you may well be covered for the costs associated with the closure itself—help with the rent, meeting payroll, loss of earnings, etc. But you may not be covered for all the other costs—fixing the problem, cleaning up, legal costs while you fight for compensation, and more.

When it comes to the smooth and safe running of a restaurant, or any food-related business, the efficient provision of utilities is essential. Without power, you are without light, refrigeration, heat, cooling, cooking equipment. Without water, or even with reduced water pressure, you lose your ability to prep, cook, clean, wash hands, wash equipment, flush toilets, and provide a safe environment for staff and customers alike.

Many Business Owners Insurance policies explicitly exclude utility services in their general liability. Thus, you may find that if you incur losses due to a power failure or water interruption you are not covered because the losses were caused by damage to the utility equipment that is not on your property. This is why you need Utility Service Insurance. Not only will it cover you for damage to your property—either the whole property or, if you choose, to certain items such as perishable food but also, Utility Service Insurance will cover you for loss of income or extra expenses caused by interrupted utilities service. As ever, talk to your agent and make sure that you have the right type and amount of insurance.

Similar to Utility Service Insurance but likely not included in such a policy, is Sewage Backup Insurance.

Sewage water contaminants can include foodborne pathogens such as E. coli, as well as parasites, chemicals, and other toxins. Problems can occur if you have standing water in drains, blocked or otherwise faulty toilets, non-draining waste water, or malfunctioning grease traps.

For a restaurant, closure because of sewage issues can be extremely damaging—not only can the risk of health problems be unpleasant for those affected and costly for the business owner, but also anything associated with sewage can be very damaging to your brand. It is important to have insurance that can help with the cost of repair, the expense of fighting for compensation if the problem is not of your making, and the price of paying for marketing expenses should you need to reassure the public and your customer base.

Like Utility Service Insurance, Sewage Backup Insurance will enable you to get back to what you do best as quickly as possible and as inexpensively as possible—don’t let a blocked drain ruin your restaurant.

Contact Vozza Agency for restaurant insurance in New Jersey.