What Is New Jersey Business Needs Interruption Insurance?

The short answer: any business. If you own a business 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?

Any number of events could lead to a restaurant having to close its doors temporarily. Perhaps the kitchen is flooded and all the appliances have to be replaced. Maybe there’s a water leak that damages the furnishings in the restaurant dining room. Perhaps there is a failure in the bathrooms and the wastewater gets backed up. All of these issues would lead to a New Jersey restaurant being unable to open for business.

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 Jersey restaurant has good, up-to-date insurance, you will be all set. But, what none of those insurance policies cover are the ongoing costs that occur while your restaurant is closed. For that, you need Business Interruption Insurance.

What does New Jersey Business Interruption Insurance cover?

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

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 no one is going to help with all the other costs, no one that is unless you have Business Interruption Insurance, also sometimes known as Business Income Insurance. Our insurance agency in Park Ridge provides commercial restaurant insurance. 

Is there a wait time before I can claim coverage from my Business Interruption Insurance?

Depending on your restaurant’s insurance policy, there will indeed most likely be a wait time before the Business Interruption Insurance will pay out. In most cases that period will be at least 48 hours but rarely more than 72 hours. Bear in mind there will also be a maximum duration in the policy…in other words you can’t close your restaurant indefinitely and keep claiming on your Business Interruption Insurance.  Contact us to review your current business interruption or commercial restaurant insurance policy and to talk about options. 

Does the amount of coverage provided by Business Interruption Insurance vary?

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

• if you had to, could you relocate temporarily?
• if you were to relocate what would be the costs of that move?
• how many employees do you have who would need paying?

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. And, of course, the Business Interruption Insurance will not pay for everything when your restaurant is closed temporarily, but it will go a long way to taking the bulk out of the financial burden.

Your independent insurance agent at Vozza, the best insurance agency in Park Ridge, New Jersey, is here to help and will navigate your needs with professionalism, knowledge, and empathy. Call today and let us make sure your restaurant or bar is suitably covered.

For more information on the best restaurant insurance coverage in New Jersey contact Vozza Agency.

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