Does Food and Beverage insurance cover damage caused by water leaks?

Discover if food and beverage insurance covers water leak damage and learn the importance of understanding your policy's specifics.

Aditya Raghunath - Writer for NEXT Insurance
By Aditya Raghunath
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated June 2, 2023.

Ever wondered if food and beverage insurance has your back when water leaks wreak havoc on your business? You're in luck — this coverage plan can include a commercial property policy, which can help if the damage is accidental. Let's look at the specifics.

Which damages can be covered?

  • Equipment malfunctions or sudden pipe bursts that lead to accidental leaks
  • Leaks caused by extreme weather conditions, such as windstorms
  • Inventory loss or equipment damage caused by accidental leaks

You can breathe a sigh of relief knowing you're protected if your food and beverage business experiences water leak damages like this.

» New to the restaurant business? Check out these restaurant startup costs

Which damages aren't covered?

When it comes to water damage, there can be exceptions under food and beverage insurance.

  • Leaks caused by negligence
  • Lack of regular maintenance leading to leaks
  • Damage from floods, which may require separate flood insurance

Don't let water damage dampen your business

Food and beverage insurance can cover various types of water damage, including damage caused by accidental leaks. But, since there can be exclusions, it's recommended you check out policy limits and add-ons to help you get the coverage you need. NEXT can help with this.



For affordable, tailored business insurance, view your options by simply applying online and getting an instant quote in less than 10 minutes. You can also get your certificate of insurance and share it 24/7 with the NEXT app. Then, wash away your worries and focus on running your food and beverage business.

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