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. The coverage is inexpensive relative to the risk, typically adding less than 5-10% to your premium.
Documentation that supports a claim:
- Photograph inventory before disposal
- Save utility company notices documenting power outages
- Keep maintenance and temperature logs for affected equipment
Strong prevention measures — backup power, regular equipment maintenance, and automated temperature monitoring — can reduce your spoilage insurance premiums and may earn you discounts.
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