Common supermarket insurance claims: Machinery breakdown and food spoilage

In this series, Matt Ritson, Co-founder of IndiHub, explores the top three supermarket insurance claims that grocery stores are most susceptible to.

When a cool room or refrigerator is broken down or out of service, there is a great chance for food spoilage at your supermarket. Repairs for these systems are costly and time consuming, especially if a breakdown happens during a busy holiday period.

If you implement a thorough maintenance program on such equipment, it can help to reduce the frequency of claims filed under this insurance cover section. In some cases, if a maintenance contract like this isn’t in place, insurers won’t even provide coverage.

You need food contamination and spoilage coverage on top of your commercial property insurance to cover what applies to ‘perishable stock.’ Perishable stock includes:

  • Items that must be maintained under controlled conditions for preservation
  • Items that are susceptible to loss or damage if the controlled conditions change

If you have food contamination and spoilage insurance, you will be reimbursed if a power outage or equipment failure should occur and destroy or damage perishable items. This type of insurance also covers testing and the cost of equipment cleaning if your business should close due to food poisoning or other such illnesses. It can also reimburse you for any lost revenue.

Insurance policies can be hard to understand and difficult to decipher. If you’re not sure about your coverage for this type of risk the team at IndiHub are here to help.

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