What does Spoilage Coverage protect against?

Spoilage Coverage specifically addresses the financial losses associated with the deterioration of perishable goods due to a specific situation, such as a breakdown in the refrigeration system that may be caused by a power outage. This type of coverage is particularly relevant for businesses that deal with perishable items, like food suppliers and grocery stores, as it protects their investment in goods that can spoil or become unsellable due to temperature or environmental changes.

While physical damage to stored goods, fire damage to personal property, and theft of perishables are all important considerations for a business, they fall outside the scope of spoilage coverage. Physical damage and fire damage generally relate to property insurance claims linked to tangible loss, while theft deals with loss prevention and property recovery, none of which directly affects the condition of perishables primarily due to a power outage or refrigeration failure. Thus, spoilage coverage is specifically tailored to address the unique risks associated with the potential loss of perishable goods.