Many types of businesses need spoilage insurance. Restaurants, supermarkets, drug and convenience stores come to mind immediately, but even laboratories or businesses that ship or handle perishable products have a risk of spoilage.
While spoilage coverage is not included in a standard commercial property policy, it is available as an endorsement, and it is generally inexpensive. Typically, approved causes of loss covered under a spoilage endorsement include prolonged power outage and equipment breakdown or failure, so you also may consider mechanical breakdown coverage, for spoilage that occurs due to an equipment breakdown. This coverage may help reimburse you for repairs or replacement costs for food-storage-related equipment, such as refrigeration systems, piping and mechanical and electrical machines.
Managing risk and being proactive with loss control is always a smart move, and it can save your business time and money, as well as improve the overall quality of its operations. Here are some important policies for your business to follow to prevent spoilage related losses:
- Insist your employees wash their hands, cutting surfaces and utensils before and after handling food of any kind. Never chop lettuce or any vegetable on the same surface you just chopped chicken on without cleaning it first. Cross contamination could lead to salmonella.
- Pay close attention to food temperature standards and protocols.
- Rotate foods so that the first foods into the cooler are the first foods that come out of the cooler.
- Inspect food, especially produce, for freshness before accepting delivery.
- Schedule periodic inspections to ensure foods and perishables are at the appropriate temperature, employees are handling food safely and all the produce is fresh.
We know you want your business to have the best protection possible. If you have any questions or want to know more about certain coverage, call us today. We’re happy to sit down and talk to you.