Businesses that deal in perishable products have unique risks that other businesses don’t. While restaurants may be the best example of businesses subject to spoilage exposure risks, there are many other businesses that need to be protected from risks of spoilage with spoilage coverage insurance such as:
- Florists
- Mobile food cart owners
- Pharmacies
- Cigar Stores
- Bakeries
- Coffee Shops
- Ice Cream Shops
- Tropical Fish Stores
- Convenience Stores
- Deli Shops
- And many more
In any of these businesses, 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. The power outage could be on your business premises or off premises.
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.
In a restaurant, deli, or other business that serves food, food contamination and spoilage can occur, which can lead to serious illness for both customers and employees. And food contamination occurs quite often; just watch the news and you’ll hear about food contamination outbreaks practically every month.
Spoiled coverage is designed for practically any business that stores, processes, or sells perishable items — including, but not only food — that must be maintained under proper conditions in order to avoid damage. 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.
If you are in the type of business that is vulnerable to spoilage risks or deals with perishable products, it’s important to protect yourself and your business from potentially devastating losses should a power outage or equipment breakdown occur. So, don’t cry over spoiled milk, get spoilage coverage insurance today.
