Restaurant Insurance: Insuring Your Restaurant from Off-Premises Power Failure

The Off-Premises Power Failure Endorsement provides coverage for financial loss due to lack of incoming electricity from a loss occurring away from the insured’s business. While power failure may act as a mere inconvenience in many cases, it can quickly turn into a devastating circumstance for a restaurateur. For instance, what if a loss occurred on your busiest week of the year? Or, in the wake of the recent super storms, what if your power was out for two to three weeks? What type of financial loss would your business suffer? In considering off-premises power failure coverage you will want to ensure that all of the risks your business cannot afford to retain are insured.

Restaurant Insurance - Power Failure

In most cases, the basic restaurant insurance policies exclude coverage for a loss due to a power outage or failure of other utility service at the restaurant’s location if the actual failure occurs at a location other than the premises.  If, for example, lightning were to strike utility equipment or power lines not on the insured premises, there would not be coverage for the loss of business income due to the power outage. However, if the failure of the power lines or utility service results in a covered cause of loss (such as fire), there would be coverage for loss or damage from the covered cause of loss.

An off-premises power endorsement must be endorsed to the majority of restaurant insurance policies. In addition, there are distinct differences in whether the policy provides coverage for power lines, utility services or both. At SwingleCollins we will help restaurant owners and operators understand their current policies and make recommendations where gaps in coverage may exist.

Don’t be left in the dark. Let your SwingleCollins agent help you find the right coverage for your business.

Swingle, Collins & Associates specializes in restaurant insurance coverage The descriptions of coverages listed on this website are brief and subject to the provisions, limitations, and exclusions that can only be expressed in your policy and related endorsements. For additional information of how Swingle, Collins & Associates can assist in meeting your coverage needs for: restaurant insurance, off premise power failure insurance, and food spoilage insurance please contact your dedicated risk manager to discuss the benefits and services of restaurant insurance coverage.

The information contained on this page is provided for informational and educational purposes only. It contains general information on insurance issues and may not reflect the most current developments in insurance coverage and is unlikely to apply in all factual scenarios. The information does not include all the terms, coverages, exclusions, limitations or conditions that may be contained in the actual insurance contract language. The policies themselves must be read for those details. Sample policy forms will be made available upon reasonable request.