Food Spoilage Coverage
Food Spoilage Coverage for Restaurants and Food Businesses
Running a food business comes with a unique set of risks—especially when it comes to perishable inventory. Whether you’re managing a bustling restaurant, a franchise kitchen, a bar, or a catering company, unexpected power outages or equipment malfunctions can result in significant food losses. That’s where Food Spoilage Coverage becomes essential.
This coverage helps businesses recover the cost of spoiled food due to covered events, minimizing financial loss and ensuring operational continuity.
What Is Food Spoilage Coverage?
Food Spoilage Coverage is a specialized type of business insurance that reimburses foodservice establishments for the value of perishable goods lost due to:
Power outages
Equipment breakdowns (e.g., refrigerator or freezer failure)
Mechanical or electrical failure
Utility service interruptions
Natural disasters (when covered under your policy)
This protection is often included in broader bars and restaurants insurance or available as an add-on to your restaurant property insurance
Who Needs Food Spoilage Insurance?
Any business that relies on refrigeration or freezers for inventory should consider Food Spoilage Coverage, including:
Restaurants
Bars and pubs
Cafés and bakeries
Food trucks
Franchise food establishments
Grocery stores
Catering businesses
Specialty food shops
Whether you’re managing a franchise restaurant or an independent eatery, protecting your inventory is a key part of a smart restaurant insurance strategy.
Enhance Your Business Owner’s Policy with These Additional Coverages
Workers’ Compensation Insurance
In most states, you're legally required to carry workers' compensation insurance to cover employee expenses related to work-related injuries or illnesses, including medical bills, lost wages, and rehabilitation.
Professional Liability Insurance
Professional liability insurance protects you and your business if you're accused of negligence in the services you provided—even if no actual mistake was made. It offers peace of mind by covering legal costs and potential damages, helping you maintain your reputation and financial stability.
Commercial Auto Insurance
Commercial auto insurance covers expenses resulting from an accident when you or your employees are at fault. If vehicles are used for business purposes, carrying appropriate commercial vehicle insurance is essential.
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