Desmond Insurance Blog
Losing your perishables supply can be costly if you own a restaurant, a grocery shop, or a wholesale food business. Your company's income and image may suffer due to a government agency shutting down your firm due to improper food distribution.
Food deterioration and contamination coverage in your company’s insurance policy may be beneficial in specific cases. And today, you’re going to learn more about that. This article will cover topics related to food spoilage coverage to help you with your food marketing needs.
What Is Food Spoilage Coverage?
Food spoilage insurance can assist you in reimbursing you for the cost of lost food and drinks. But it also depends on the limitations of your policy. This type of insurance may help you safeguard your company against a variety of threats, such as:
Prolonged power outage
If you do not have a backup generator, a power outage beyond your control may cause your refrigerator or freezer to shut down. As a result, perishable goods may be subjected to undesirable temperature and humidity levels.
Equipment breakdown or failure
Food spoilage coverage, for example, may help pay for the replacement of spoiled or tainted food if your walk-in freezer breaks. Maintaining equipment service contracts with regular maintenance and repair plans may be required by your insurance, so keep that in mind.
Mechanical breakdown coverage
According to the Insurance Information Institute, food spoilage coverage may also be useful in the event of an equipment failure. Refrigeration systems, pipes, and mechanical and electrical devices, as well as other food-storage-related equipment, may be covered under this coverage.
Food Contamination Coverage
Power outages and equipment failures aren't the sole reasons for food-related losses. It is conceivable that the food was not properly kept or handled.
Bacteria such as Escherichia coli (E. coli) may be found in food delivered to your facility and infect your customers. During meals, employees may unwittingly transfer a virus or bacterium.
Food contamination coverage can aid if a health board shuts down your firm due to a food-borne illness outbreak. This coverage may be able to assist you in reimbursing you for things like:
You may be required to pay a deductible before receiving reimbursement for a food spoilage claim; examine your policy or consult with an insurance agent to be sure.
The maximum amount your coverage will cover for contamination-related loss may be limited. Read your policy thoroughly to discover the coverage restrictions that apply.
Food spoilage and food-contamination insurance are good backup plans in case the unexpected occurs. Contact your insurance provider to add additional coverage to your company owner's policy.
At Desmond Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (859) 491-5100 or Click Here to request a free quote. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.