Business Interruption Insurance
What Is Business Interruption Insurance?
Business interruption insurance, also known as restaurant recovery insurance, provides financial support when your restaurant can’t operate due to a covered peril. Unlike property insurance—which only covers physical damage—this policy helps cover lost profits, rent, utility bills, employee wages, and other fixed operating expenses during your downtime.
If you’re wondering what insurance do restaurants need, this is one of the most critical types.
What Does It Cover?
When disaster strikes, business interruption insurance ensures your restaurant continues to function financially. Coverage typically includes:
Lost business income
Payroll (including health insurance for restaurant employees)
Rent or lease payments
Taxes and loan payments
Relocation costs if you need a temporary space
Costs to train staff on new equipment after repairs
It’s a powerful supplement to general restaurant & bar insurance, keeping your business stable even when your doors are temporarily closed.
Why Restaurants Need Business Interruption Insurance
Restaurants are vulnerable to unexpected events—fires, storms, equipment failures, and more. Without the right coverage, even a short closure could result in major financial loss.
Whether you’re running a small café or a multi-location chain, business interruption insurance protects your revenue and gives you the time to recover without rushing back into operation.
It pairs well with other essential policies like:
Restaurant equipment insurance
General liability
Workers’ compensation
Health insurance restaurant employees
Restaurant property insurance
How Much Is Insurance for a Restaurant?
Who Should Consider Business Interruption Insurance?
Business interruption insurance is ideal for:
Independent restaurants
Fast food chains
Coffee shops
Pubs and bars
Catering businesses
Professional Liability Insurance
Your total restaurant business insurance cost depends on various factors: location, size, revenue, and risk exposure.
How much is restaurant insurance per month? Most restaurants pay between $150 to $500/month.
Adding business interruption coverage may increase your premium slightly, but the value far outweighs the cost in the event of a disaster.
