What is Spoilage Coverage?

Spoilage coverage is a type of insurance that provides protection for perishable goods, such as food and beverages, in the event of damage or loss due to specified causes. It is commonly included in commercial property insurance policies or can be purchased as a standalone policy, depending on the needs of the insured business.

Here are the key features of spoilage coverage:

1. Coverage for perishable inventory: Spoilage coverage reimburses the insured for the cost of perishable inventory that becomes unsellable due to covered causes of loss. This can include events such as power outages, equipment failures, mechanical breakdowns, or contamination that spoil food and beverages.

2. Reimbursement for replacement costs: If perishable items are lost or damaged due to a covered event, spoilage coverage typically reimburses the policyholder for the cost of replacing the spoiled inventory up to the policy limits. This can include the cost of purchasing new inventory and any associated expenses, such as disposal fees.

3. Business interruption coverage: Pathpoint offers coverage for the income lost due to a covered loss. This can help compensate insureds for the revenue lost while the business cannot operate due to the spoilage event.

4. Policy limitations and exclusions: Like any insurance coverage, spoilage insurance may have limitations and exclusions. Insureds should review their policy carefully to understand what events are covered, any deductible amounts, and any specific exclusions that may apply.

Food Trucks

Restaurants, Bars and Taverns (General Liability, Property and Package)

Why are there multiple options under Retail & Services?

What are the different Cause of Loss/Coverage forms?

Do you offer Equipment Breakdown for food trucks?