Hood and suppression systems
Commercial kitchens that produce grease-laden vapors generally need a hood, duct system and fire suppression system meeting local fire code, which commonly references NFPA 96. Insurers often ask whether the suppression system is inspected on a regular schedule and whether hoods and ducts are cleaned professionally.
What property coverage includes
- Building improvements and fixtures you installed
- Cooking refrigeration and dishwashing equipment
- Furniture and point-of-sale systems
- Food beverage and supply inventory
- Signs outside the restaurant
Equipment breakdown and spoilage
Standard property policies usually exclude mechanical or electrical breakdown. Equipment breakdown coverage can pay to repair a failed walk-in compressor or oven. Spoilage coverage can pay for food lost when refrigeration fails or power goes out, subject to the terms and any limits.
Business income
After a covered fire, a restaurant may be closed for weeks or months. Business income coverage can replace lost profit and pay continuing expenses such as rent and payroll, subject to a waiting period and limits. Check how long the coverage lasts.
Valuing the kitchen
Insure equipment at what it would cost to replace today, not what you paid. Keep an inventory with photos and receipts, and update it when you add equipment.
After a fire
Shut down the cooking line, call the fire department even for a small fire that the suppression system put out, and notify your insurer promptly. The suppression system will need to be recharged and inspected before cooking resumes, and the health department may need to clear the kitchen.
Frequently asked questions
Does property insurance cover a grease fire?
Fire is generally a covered cause of loss, but policies may have conditions about maintaining suppression systems. Read them.