Is Your Stock Covered If the Fridges Fail? A Checklist for Grocery Stores

Business Insurance

You walk in at 6am and the cool room is warm. Or the power went out overnight and nobody noticed until the milk was already off. For a grocery store, it's one of the most expensive mornings you can have, and it isn't always clear whether your insurance will help.

Here's what to check before it happens.

1. Is spoilage covered at all?

Some policies include stock loss from refrigeration breakdown or power failure. Some offer it as an optional extra, and some leave it out. Look for words like spoilage, deterioration or refrigeration in your policy, or send it to us and we'll find it.

2. What's the limit?

Even where it's covered, the limit can be well below the value of what's in your cool rooms. Add up what you hold in your fridges and freezers on a normal Friday and compare it to the number on the policy.

3. Are there conditions?

Some policies only respond if the outage lasts a minimum time, or if the breakdown was sudden rather than the result of poor maintenance. Read the conditions, not just the heading.

4. What's the excess?

A high excess on a spoilage claim can take a big bite out of the payout. Know the number before you need it.

5. Are your records in order?

A temperature log and regular service records for your refrigeration won't change your policy, but they make a claim much easier to support.

6. What about lost income?

While you restock and get the shelves right, you're not trading normally. Check whether business interruption cover applies and for how long.

Need a second pair of eyes?

If you'd like a second pair of eyes, send us your policy and we'll check these points for you. We're a local broker in Norwest, and we work with grocery stores and supermarkets across Sydney and Australia.

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Disclaimer: The information provided on this page is general advice only and does not take into account your personal circumstances, objectives or needs. Before making any decision about insurance, consider the relevant Product Disclosure Statement and Target Market Determination and whether the product is suitable for you. Insurance cover is subject to the terms, conditions, limits and exclusions of the policy.