When the Oven Breaks: Is Your F&B Business Covered for Equipment Breakdown?

For any F&B establishment in Singapore, the kitchen is the heart of the operation. From the mighty oven baking your signature pastries to the critical refrigeration units preserving your fresh ingredients and the indispensable coffee machine serving your morning rush – these pieces of equipment are the lifeblood of your business. But what happens when one of them suddenly gives up?

A broken oven, a malfunctioning chiller, or a defunct coffee machine isn't just an inconvenience; it's a direct hit to your operations and your bottom line. Repairs can be costly, and the resulting downtime can mean significant lost revenue. The crucial question is: Is your F&B business covered for equipment breakdown?

Beyond Standard Property Insurance

Many F&B owners assume their standard commercial property insurance will cover equipment failures. While a basic property policy typically covers damage caused by external perils like fire or flood, it often excludes breakdowns due to internal issues like mechanical or electrical failure, power surges, or even operator error.

This is where SME insurance steps in. SME insurance is a specialized coverage designed to protect your F&B business from the financial fallout of sudden and accidental breakdowns of essential machinery and equipment.

What SME Insurance Covers for F&B:

• Repair or Replacement Costs: The most direct benefit, covering the expenses to fix or replace your broken equipment. This can include everything from your walk-in freezer to your espresso machine.
• Spoilage of Perishables: A critical feature for F&B. If your refrigeration unit breaks down, leading to thousands of dollars worth of spoiled ingredients, SME insurance can cover the cost of the lost stock.
• Business Interruption: While SME insurance primarily covers the equipment itself, it can often be extended to cover the loss of income you suffer while your essential equipment is out of commission and your business operations are disrupted.
• Expediting Expenses: Costs incurred to quickly get your business back online, such as expedited shipping for replacement parts or overtime pay for technicians.

Common F&B Equipment Covered:

• Ovens, stoves, fryers, grills
• Refrigerators, freezers, chillers, ice machines
• Coffee machines, dishwashers
• Air conditioning and ventilation systems
• Electrical systems
• POS (Point of Sale) systems

Why It Matters for Your Singapore F&B Business:

Singapore's F&B scene is competitive, and customers expect consistent quality and service. A sudden equipment failure can lead to:

• Significant financial losses: From costly repairs to wasted inventory.
• Operational disruption: Reduced menu items, slower service, or even temporary closure.
• Reputational damage: Frustrated customers and negative reviews.

Don't let a broken oven or fridge jeopardize your F&B business. Review your current insurance policies and consider if Equipment Breakdown Insurance is the missing piece in your protection strategy.

Let SMEsure handle the risk management for your business. This frees you up to fully focus on your business and dedicate more time to the people who matter most.

For more information on how SMEsure can support your business, visit us here.