What is Food Spoilage Insurance?

Food Spoilage Insurance is coverage that reimburses the cost of food inventory that spoils due to power outages or equipment failures.

What You Need to Know

When your refrigeration fails, the power goes out, or covered equipment breaks down, this insurance replaces the value of food that spoils as a result. It’s often added as an endorsement to property or equipment breakdown coverage.

Why It Matters for Restaurant Owners

Restaurants can lose $5,000-$50,000+ in inventory from a single extended power outage or refrigeration failure. Without spoilage coverage, you absorb this total loss.

Coverage is Affordable:

The coverage is inexpensive relative to the risk, typically adding less than 5-10% to your premium.

Claims Documentation:

Document your inventory with photos before disposal and save utility company notices documenting power outages to support claims.