A kitchen fire that closes you for eight weeks costs more than repairs — it costs eight weeks of revenue while rent, loan payments, and key payroll keep running. Business interruption (business income) coverage is the piece of a restaurant policy built for that gap, and it’s the coverage owners most often discover they underbought. Get multiple quotes within minutes.
What business interruption pays for
- Lost net income — what you would have earned during the closure
- Continuing expenses — rent, utilities, loan payments, and the payroll that keeps your team from scattering
- Extra expense — the cost of operating from a temporary location or expediting reopening
What triggers it — and what doesn’t
Coverage follows a covered property loss: the fire, the burst pipe, the covered equipment failure. The period of restoration — how long benefits last — and any waiting period deductible are the policy terms that decide whether the coverage matches reality. Restaurants with long buildout timelines should pay particular attention to restoration periods, because rebuilding a commercial kitchen rarely happens fast.
Sizing it honestly
The number that matters is how long a serious loss would actually close you — permitting, equipment lead times, hood system replacement — not an optimistic guess. Pair it with equipment breakdown coverage inside a restaurant BOP, and the package covers both the loss and the downtime it causes.
Frequently asked questions
Does business interruption cover payroll during a closure?
Yes — ordinary payroll can be included so your core team stays paid and stays yours through the closure, though how much and how long depends on the policy terms you choose.
How long does business interruption coverage last?
Through the “period of restoration” — the time reasonably required to repair and reopen — subject to policy limits. Restaurants should stress-test that period against realistic rebuild timelines for commercial kitchens.
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