Norwest NSW
Food Spoilage Insurance
If you sell, make or serve food, you're one failed compressor or one long blackout away from throwing out thousands of dollars of stock.
Food spoilage insurance covers the cost of stock that spoils because of an insured event, like a refrigeration breakdown or a power outage.
Who it suits
- Restaurants, cafes and caterers
- Supermarkets, grocers and butchers
- Bakeries, delis and takeaways
- Anyone with a cool room or a lot of refrigerated stock
What it can cover
- Spoilage after mechanical or electrical breakdown of refrigeration
- Spoilage after a power cut, in many policies
- Contamination from leaking refrigerant, in some policies
What to watch
- Some policies need the power to be off for a minimum number of hours.
- Some need the outage to come from the supplier's network, not your own wiring.
- Many require a monitoring or alarm system on larger cool rooms.
- Stock limits matter. Check yours against a busy period.
Case study
An example
A grocer's cool room compressor fails on a Friday night. By Monday morning, $11,000 of dairy, meat and produce has to be thrown out. If the policy includes spoilage cover from breakdown, the stock can be claimed, less the excess.
Illustrative example only. Cover depends on your policy wording.
Contact us
Tell us:
We're based at Suite 2.02, 2-8 Brookhollow Ave, Norwest NSW. Call 02 8660 2305 or email admin@idealbrokers.com.au.
Ideal Insurance Brokers, Norwest NSW 2153. Ideal Brokers Pty Ltd (CAR No. 001262504 | ABN 65 623 205 952) is a Corporate Authorised Representative of Metrix Connect Pty Ltd ACN 635 286 136 as the trustee for the Metrix Connect Hybrid Trust ABN 55 742 327 931 | AFSL No. 525491. This page contains general information only and does not take into account your objectives, financial situation or needs. Read the Product Disclosure Statement before buying.
Food spoilage insurance FAQs
Often not. It's normally an extension that has to be added.
Sometimes, if the outage runs past the policy's time limit. We'll check yours.
Yes. Stock lists, temperature logs and invoices all help.