Early July and you’re well into your busy restaurant season. So far, it’s been a good year for your New Jersey restaurant, and you’re fully booked for the next few weeks. You have some unique new items on the menu and an exciting schedule of live music coming up. And it looks like being one of your most profitable Fourths of July ever.

And then…disaster. The air conditioning fails. With temperatures forecast to be well into the 80s and perhaps even the 90s, having no air conditioning in the dining room is inconceivable.

You call your HVAC company and explain the emergency. They will be right out but it’s a weekend so there’ll be a hefty call-out fee. When the technician gets to you, he discovers that the fault lies with a part that must be replaced. He doesn’t have it on the truck and nor is there one in the warehouse. It will have to be ordered. Then comes the worst news of all—the part will not be here until after the holiday. You have no option but to close. And then you wonder…will your insurance cover any of this? And if so, what, and how much?

When it comes to New Jersey restaurant insurance there are many extensions offering coverage for all scenarios. In this instance, the policies most likely to offer financial assistance will be:

Business Interruption Insurance—restaurant insurance that will cover ongoing costs while you are temporarily closed: rental or lease payments, employee wages, utility bills, etc. Be sure to read the small print, though: some business interruption insurance is limited to closure caused by “peril” (theft, property damage, fire, etc.) rather than equipment failure.

Boiler and Machinery/Equipment Breakdown Insurance—covers the cost to repair and replace specific equipment as well as some of the losses suffered while the equipment is non-operational. However, you will be required to show evidence that the equipment in question has been well-maintained and properly serviced, and there may be an equipment age limit in the policy details.

Umbrella Policy—the policy that kicks in and provides extra coverage when a claim exceeds a specific liability coverage.

For a restaurant owner or manager, an unexpected closure at a busy time of year can be traumatic, costly, and deeply upsetting. But, with the right restaurant insurance, it need not be fatal.

Don’t wait until the worst happens. Be prepared, read the small print on your policies, talk to your broker, update and upgrade where necessary, and be sure to keep all your equipment well-maintained and serviced at all times.

For more information on top rated restaurant insurance in New Jersey contact Vozza Agency.