Do Restaurants Have Insurance for Lost Revenue From Fire?
When disaster strikes, such as a fire in the kitchen or dining area, it can shut down operations for days, weeks, or even months. For many restaurant owners, the biggest concern isn’t just the physical damage—it’s the loss of revenue during the closure. This raises an important question: Do restaurants have insurance for lost revenue due to fire?
The answer is yes—bars and restaurants insurance can include a specific policy known as business interruption insurance, which helps cover lost income when your restaurant is forced to close due to a covered peril like fire.
Let’s break down how this coverage works, who needs it, and how it fits into your overall restaurant insurance program.
What Is Business Interruption Insurance?
Business interruption insurance is a component of many franchise restaurant insurance programs and standard restaurant policies. It reimburses you for lost profits and helps cover fixed expenses—such as rent, payroll, and utilities—during the time your restaurant is closed for repairs after a fire.
It may also cover:
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Temporary relocation costs
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Loan payments
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Taxes
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Employee benefits (including health insurance for restaurant owners and staff)
This coverage is a lifesaver for restaurants recovering from serious property damage.
Is It Included in Standard Restaurant Insurance Policies?
Most franchise restaurant insurance policies and bars and restaurants insurance packages include business interruption coverage as part of a commercial property or business owner’s policy (BOP). However, it’s important to check the details with your provider.
For example, GEICO restaurant insurance and other national carriers may offer this coverage as an optional add-on rather than automatically including it.
If you’re operating in a high-risk area, such as in parts of the South, having Georgia restaurant insurance with fire and business interruption coverage is essential for long-term stability.
How Much Insurance Does a Restaurant Need to Cover Fire Losses?
If you’re wondering how much insurance does a restaurant need, especially in the event of fire-related losses, the answer depends on several factors:
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Size of your restaurant
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Monthly operating expenses
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Average monthly income
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Location and fire risk level
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Whether you’re part of a franchise restaurant insurance program or own an independent location
Working with a broker experienced in bars and restaurants insurance will help you determine the right coverage limit for your business.
How Much Is Insurance for Restaurants With Fire and Interruption Coverage?
The cost of restaurant insurance that includes fire and income loss protection varies by provider, but here’s a general range:
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How much does insurance cost for a restaurant?
Typically between $2,000 and $6,000 per year -
How much is insurance for restaurants per month?
Expect to pay between $150 and $500 per month, depending on location, size, risk level, and additional coverage options
Adding business interruption insurance may raise your premium slightly, but it provides crucial financial protection during unplanned closures.
Benefits of Business Interruption Coverage After a Fire
Having the right insurance means:
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Faster recovery after a disaster
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Financial support to pay employees and bills
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Peace of mind that your income is protected
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Stronger reputation with landlords, lenders, and partners
This is particularly important if you’re part of a national or regional franchise restaurant insurance program, where brand continuity and operational consistency are vital.
Final Thoughts
So, do restaurants have insurance for lost revenue due to fire? Absolutely—business interruption insurance is the key. Whether you’re an independent owner or part of a franchise, it’s essential to include this coverage in your bars and restaurants insurance plan.
Protect your livelihood, staff, and brand reputation by ensuring your policy is equipped to handle the financial challenges of a fire-related shutdown.
If you haven’t reviewed your coverage in a while, now’s the time to ask your provider—or a specialized broker—if you have the protection you need to bounce back strong.