What is All Covered Under Restaurant Package Insurance?

You have been actively involved in the booming Indian hospitability sector. With your sheer hard work, you have built this restaurant business which is reaping numerous benefits for you. While you may love what you have created, it is essential to ask yourself— “Have I insured my restaurant against the threats that may arise and hamper my earning?”

If the answer is no, it is the high time to purchase restaurant package insurance which has been specifically designed keeping in mind different needs of your restaurant business.

Here is all that covered under restaurant package insurance:

Section I Building/Contents

Though it doesn’t cover money and valuables; it offers the coverage against various perils like:

  • Fire
  • Lightning
  • Explosion/Implosion
  • Riot, strike and malicious act
  • Bushfire
  • Earthquake, fire
  • Impact damage
  • Landslide, including rockslide and demolition

Section II Alternate Accommodation

In case your hotel or restaurant gets damaged or destroyed due to any of the insured peril and becomes unfit for the occupation, the restaurant package insurance would offer reimbursement of additional rent which you would have to incur by shifting to alternative accommodation.

Section III Business Interruption

The restaurant package insurance covers for losses of profits which may arise due to interruption of the business due to insured perils.

Section IV Electronic Equipment

It covers losses or damages to electronic equipment, including gadgets, apparatus and computers against accidental damages and breakdown.

Section V Reinstatement of Data

In case the data related to restaurant gets damaged due to insured perils, the policy would cover the cost of reinstating data on data-carrying materials.

Section VI Portable and Mobile Equipments

In case any loss or damage occurs to portable equipment like laptops, mobile phones, etc.; of the policyholder and which are kept in the custody of the policyholder, director or employees within India for the purpose of business, the restaurant package insurance would cover that as well.

Section VII Machinery Breakdown

The expenses incurred in repairing electrical and mechanical appliances, gadgets, apparatus, etc.; which are damaged due to break down, would also be covered by restaurant package insurance.

Section VIII Burglary & Housebreaking

In case of any loss or damage to contents in the hotel like furniture, electrical accessories, stocks, etc.; due to burglary or housebreaking, the restaurant package insurance company would cover it as well.

Section IX Money Insurance

It covers loss of money which may happen during transit or when it is kept at the safe business premise.

Section X Fixed Plate Glass

It covers those losses or damages to fixed glass, sanitary fittings which are kept in the premise of the policyholder.

Section XI Neon Sign/Glow Sign/Hoarding

It offers coverage to glow sign, neon sign, etc.; against perils like fire, lightning, external explosion, riot, strike, etc.

Section XII Accompanied Baggage

It covers loss or damage to goods due to misfortune or accident. The coverage comprises of goods as well as personal belongings of the business owner, employee, partner and principal officers.

Section XIII Personal Accident

In case the owner or employee dies in an accident or becomes disabled, the restaurant package insurance would pay compensation to the policyholder or his/her family. The coverage available under the section can be extended by including reimbursement of medical expenses on the payment of additional premium.

Section XIV Fidelity of Employees

Though, you trust your employees, what if any of one they deceive you? The restaurant package insurance offers you compensation for any loss or damage which you have to incur due to dishonesty or infidelity of permanent employees of the hotel or restaurant.

Section XV Liability

What if any of your guests slip on the wet floor of your restaurant and breaks his/her leg? As the owner of the restaurant, you would have to pay compensation to the injured party. Here, restaurant package insurance can come to your rescue as the insurer would offer you coverage against third-party liability and also cover legal fees and expenses incurred as per Indian law.

Section XVI Employee Compensation

Similarly, like your guests, your employees may also hurt themselves while working at the workplace. And, as the owner, you would be responsible for compensating them. Here, your restaurant package insurance can come for your help. The insurer would pay compensation to the injured worker or his/her family in accordance with the Workman Compensation Act, 1923.

Remember, your restaurant is the result of your dedication and efficiency, so protect it with a restaurant package insurance which would give you 360-degree cover against a myriad of risks.

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