What Is Advertising Injury in Restaurant Insurance?
What Is Equipment Breakdown Insurance?
Equipment breakdown with extra expense coverage protects your restaurant from financial losses caused by the unexpected failure of vital equipment—plus the additional costs needed to keep your business running during repairs or replacements.
In restaurants, daily operations rely heavily on:
Commercial refrigerators and freezers
Ovens, fryers, and grills
HVAC systems and water heaters
Point-of-sale (POS) terminals and payment systems
If any of these systems fail due to power surges, mechanical issues, or operator error, your business can suffer from lost income, spoiled inventory, and emergency expenses.
Why California Restaurants Need This Coverage
California’s restaurants—from family-run spots in Sacramento to fine dining in Los Angeles—depend on equipment for smooth, uninterrupted service. When equipment fails, the costs go beyond repairs. Restaurants often face:
Emergency rentals or temporary equipment purchases
Higher utility bills from inefficient temporary setups
Delivery fees for outsourced food prep
Lost business from kitchen shutdowns
Rush service for parts or technician availability
Example scenarios where equipment breakdown with extra expense coverage pays off:
Your walk-in freezer fails overnight, and you must replace $8,000 in perishable goods
A power surge fries your POS system during dinner rush, requiring emergency replacement
Your HVAC system breaks down during a summer heatwave, forcing you to close temporarily and rent portable cooling units
What’s Covered Under Equipment Breakdown + Extra Expense Insurance?
This combined coverage includes:
Repair or replacement costs for mechanical, electrical, or pressure system failures
Lost income from equipment-related shutdowns
Extra operating expenses, such as rental equipment or expedited shipping
Spoilage of food inventory due to refrigeration failure
Utility system damage, including HVAC, water heaters, and cooking systems
Most restaurant insurance policies in California allow you to add this coverage as an endorsement to your Business Owner’s Policy (BOP), or as a standalone line item.
Enhance Your Business Owner’s Policy with These Additional Coverages
Workers’ Compensation Insurance
In most states, you're legally required to carry workers' compensation insurance to cover employee expenses related to work-related injuries or illnesses, including medical bills, lost wages, and rehabilitation.
Professional Liability Insurance
Professional liability insurance protects you and your business if you're accused of negligence in the services you provided—even if no actual mistake was made. It offers peace of mind by covering legal costs and potential damages, helping you maintain your reputation and financial stability.
Commercial Auto Insurance
Commercial auto insurance covers expenses resulting from an accident when you or your employees are at fault. If vehicles are used for business purposes, carrying appropriate commercial vehicle insurance is essential.
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