What Does Spoilage Coverage Mean?
Spoilage coverage is an endorsement to a commercial property policy. It provides coverage for loss of perishable stock that are stored at the premises of the insured property.
Spoilage coverage is an endorsement to a commercial property policy. It provides coverage for loss of perishable stock that are stored at the premises of the insured property.
Food is the obvious perishable stock that is covered by spoilage coverage. It can anything from ice cream to meat, fish to fancy cakes. The insured property can be a restaurant, a bakery, a grocery store, a food truck, or virtually any other commercial operation that stocks food at a particular range of temperature or humidity.
Other perishable stock include:
Most spoilage endorsements cover losses from two perils:
The payout for a loss is often equivalent to the selling price of the goods.
Some insurers offer discounts on spoilage endorsements if the insured has a refrigerator maintenance agreement with a company that provides such services.
Equipment breakdown insurance might provide some compensation for the breakdown of refrigeration equipment, but it's unlikely to be broad enough to cover the events insured under spoilage endorsements.