Food Spoilage Caused by Equipment Breakdown

When choosing a restaurant insurance plan, there are many factors to keep in mind. Like all business insurance, you need to customize your plan to meet the risks that you are most likely to struggle with as you operate your company. Often, the most expensive component of the business has to do with the food inventory you keep. While your company’s equipment and the building itself are valuable assets, you’ll pay for inventory time and time again to meet demand. When something goes wrong and puts that product at risk, your company could suffer significant loss as a result. With the right type of restaurant insurance, you don’t have to worry.

What’s Food Spoilable Coverage?

A specific type of restaurant insurance is food spoilage coverage. It can help to provide you with reimbursement for the loss of any food or beverage product up to a stated limit on the policy when a covered type of event occurs. There are various types of events that may qualify (though you should check the specifics of your insurance policy to know which is covered). They may include:

• Mechanical breakdowns. If your equipment breaks down, this can lead to expensive repairs. It also puts your product on the line. Mechanical breakdown coverage will reimburse you for the repairs and replacement costs associated with any equipment for food storage. This includes your refrigeration systems as well as electrical systems, mechanical systems and piping.
  
  
• Prolonged power outage. Without power, your refrigeration cannot work to keep your food protected. A power outage can be a very serious situation even if you do have a generator. This type of coverage protects against food lost as a result of such a failure.
  
  
• Equipment breakdown or failure. If your equipment breaks down or fails you in some way and you have to waste food as a result of food spoilage risk, your insurance will help to reimburse you for what was lost.

Restaurant insurance like this is vital because, even in the most well planned and organized location, power failures and unknown equipment failures can happen. When you have the right type of business insurance there, though, you may get the financial support you need to keep your business operational.