What is commercial kitchen equipment insurance?

Commercial kitchen equipment insurance is specialized insurance coverage protecting the high-value commercial-grade equipment essential to your kitchen operations, including ranges, ovens, fryers, grills, refrigerators, freezers, dishwashers, ventilation systems, and other fixed or movable kitchen apparatus.

What you need to know

Commercial kitchen equipment insurance can be structured several ways: as part of your overall property insurance covering business contents, as a scheduled equipment policy listing specific high-value items with individual coverage limits, or as part of equipment breakdown coverage that specifically protects against mechanical and electrical failures.

The coverage protects your equipment investment from various perils including fire, theft, vandalism, and (with proper endorsements) mechanical breakdown. Most policies cover equipment at replacement cost rather than depreciated actual cash value, meaning you receive enough money to purchase equivalent new equipment when covered items are damaged or destroyed.

Why it matters for restaurant owners

Your kitchen equipment represents your single largest capital investment after your buildout—typically $100,000 to $500,000+ for a fully equipped commercial kitchen. Without this equipment, you cannot operate, making adequate insurance coverage absolutely essential.

A kitchen fire, equipment theft, or major breakdown can put you out of business if you can’t afford immediate replacement.

Essential coverage elements:

Ensure your coverage includes:

• Replacement cost valuation (not ACV which pays depreciated value)
• Adequate total limits to replace all equipment simultaneously (total loss scenarios)
• Coverage for mechanical/electrical breakdown (not just physical damage)
• Business interruption to cover lost income while waiting for replacement equipment
• Expedited replacement provisions to minimize downtime

Critical practices:

Create and maintain a detailed equipment inventory with purchase dates, values, serial numbers, and photos—this documentation is essential for claims and for ensuring adequate coverage limits. Update your coverage annually as you add equipment—many restaurants are underinsured because they forget to increase limits when buying new equipment. Consider higher limits for specialty equipment that requires extended lead times for replacement.