Spoilage is a major concern to any business that deals with perishable foods. Spoilage Coverage protects the insurer from the cost of replacing spoiled inventory or even worse, the cost of a lawsuit from a customer getting sick by contaminated food.
Spoilage Coverage is in addition to Commercial Property Insurance or business owner’s policy. It reimburses a business when equipment fails or if a power failure causes the loss of perishable food or other perishable items. It also covers equipment cleaning, employee medical testing and reimburses you for loss revenue or the cost of reestablishing your businesses reputation.