Business insurance can be a business-saving investment. When it comes to helping you through a rough patch in which a fire, theft or even vandalism left you financially struggling, this type of insurance product is by far one of the most valuable tools you have. In some situations, it can cover many of the losses you sustain as a result of a covered incident. What about food spoilage? What if your inventory goes bad? How can it help you then?
The good news is that in most cases, business insurance can help you with spoiled inventory when and only when there is a covered incident that causes it. Here are some examples of when it may help you.
- There's a prolonged power outage. Whether it is from a storm or from an accident, when the power goes out for an extended period of time, it can put your food inventory at risk. When this happens and you are left without a backup generator or the ability to keep perishable stock safe for consumption, your policy should provide coverage.
- Mechanical breakdown coverage may apply. If you have business insurance that specifically covers mechanical breakdowns, then food spoilage may be covered as well. The equipment breakdown itself may be covered as well.
- Food contamination coverage may be important. Some businesses will benefit from investing in an additional policy for food contamination risks. This could apply in situations where the local health department closes your location because of a food-borne illness occurs. Keep in mind this is not always covered by traditional policies.
Understanding food and inventory spoilage and your business insurance policy is important. The best way to know what specifically is covered and what is not is to call your insurer to find out. If you handle a good deal of perishable product on a routine basis, it can help to boost your policy enough to cover significant mechanical failures or contamination risks. Additionally, it can help to minimize risks by implementing proper training technicians and protocols to reduce your risks of having to make business insurance claims as a result.
Have more policy questions? Call Exceed Insurance at (855) 539-2333 for more information on the restaurant insurance policies we offer.