If you lease a space for your restaurant and make improvements—such as remodeling the interior—it’s a good idea to review your restaurant insurance coverage.
Generally, if you’ve made any after-the-fact alterations, it’s up to you, not the property owner or landlord, to insure them.
For example, let’s say you’ve recently signed a lease for your restaurant and then added cooking equipment, coolers, light fixtures, carpeting or wall partitions. You would need to insure those items.
In the insurance industry, we call these changes improvements and betterments. Essentially, it means that you’re responsible in a leased space for insuring any alterations you have made, such as flooring, wall coverings, wiring, plumbing, cabinets, shelving or anything else that is attached to the ceiling, walls or floors.
Because these improvements might be essential to your business operations, it’s important to understand who is responsible for replacing them if they become damaged. If you do not update your business insurance to cover these improvements, you could be underinsured and without the means to fully repair or replace the improvements, if a covered loss occurs.
With an Erie Insurance policy, the improvements and betterments are part of business personal property coverage.
For more information, get in touch with your local ERIE agent. If you don’t have your own ERIE agent, you can find one close by. Our agents are knowledgeable professionals and local small business owners just like you who can make sure you have the right restaurant insurance coverage in place.