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Does Business Insurance Cover Spoiled Food?

Does Business Insurance Cover Spoiled Food?

Dec 14, 2022

Business Insurance

Spoiled food

If you own any type of business that handles perishable foods, you know how expensive it is to replace your inventory. Spoilage and contamination are two of the most common causes of lost inventory for grocery stores, restaurants, and wholesale food companies. You don't plan on spoilage or contamination. If it happens, you need to be prepared. Including coverage for food spoilage and food contamination in your business insurance policy is the best way to prevent financial loss.

Coverage for Spoiled Food

Food spoilage is often the result of some type of extended power outage or an equipment/mechanical breakdown. If the temperature of your food rises too high, it can begin to spoil rather quickly. Having coverage specifically for food spoilage is essential. Most policies that include this type of coverage also have requirements that must be met. Maintenance and service agreements are often required to ensure that your equipment is always in good working order. Just like other types of insurance, you will have to cover a deductible before you are reimbursed for any losses.

Coverage for Food Contamination

Spoilage is not the only way food can be damaged. If it isn't stored properly or is mishandled during the prep or serving period, food can quickly become contaminated. Sometimes, it is contaminated before it reaches your establishment. If a foodborne illness does break out, your local health board may require that you close your doors until everything has been cleaned and sanitized. This will result in a loss of income and any expenses that may be required to sufficiently clean and restock your business. Know your policy's limits when it comes to contamination coverage.

Storage Tips to Protect Your Food

There are a few things you can do to keep your food from spoiling and becoming contaminated. Have a generator on hand if your freezer or other appliances malfunction. When it comes to contamination, it's essential that you follow your state health board's food handling guidelines. Monitor your food storage practices to ensure that you are storing each type of food in an appropriate manner.

Above all, keep your kitchen area as clean and sanitary as possible. Although the health department inspects your business once a year, you need to make sure that your kitchen meets those strict standards every day. This is essential if you are trying to avoid contamination.

Cover Your Business for Spoiled Food with Little & Sons Insurance

Owning a food-related business means having the right type of insurance. The agents at Little & Sons Insurance Services offer insurance coverage for spoilage and contamination. Our agents can evaluate the needs of your business and come up with a business owner's policy that meets all of your needs, including food spoilage and contamination. We will put together a policy that protects you and keeps your business financially secure. Contact us today to get all the answers to your questions and get started with the right business insurance policy.

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After 23 Years of serving our clients at our location in Beaumont, CA it is with a heavy heart that we are consolidating our operations to our Banning Office. We will be available all the same hours and will work to make this transition as smooth as possible. Thank you for your continued business and we look forward continuing to serve your insurance needs. Our contact information will stay the same so feel free to contact us.