What Is Spoilage Insurance?
If there is an extended period of loss of power, ingredients and stock may end up being unusable, either through spoilage or death (i.e. flowers, plants, fish). That is spoilage coverage extends beyond food-based risks to other types of perishable stock that could be rendered useless as a result of a mechanical breakdown or power outage.
Why Do I need Spoilage insurance?
An extremely important insurance coverage for these types of businesses is spoilage coverage. As you can see the need for this type of coverage goes beyond restaurants. Spoilage insurance coverage helps the business owner compensate for lost revenue should food contamination, food spoilage, or loss of product resulting from power outages or breakdown of coolers or refrigerators.
Attached as an endorsement to a commercial property insurance policy, spoilage coverage includes covered perishable stock located at your business premises. It includes perishable property damage caused by a change in humidity or temperature due to an equipment failure, power failure, or contamination. The cost of replacing your food, produce, or product — and even your lost income — can be covered by a spoilage coverage and food contamination insurance policy.