A standard commercial property policy covers fire, theft, and storm damage. It doesn't cover the $8,000 of food your client lost when the walk-in cooler failed on a Saturday night.
A standard commercial property policy covers the building and its contents against fire, theft, storm, and similar perils. It does not cover spoilage — the loss of perishable inventory when a refrigeration unit breaks down, a power outage runs long, or a compressor fails at the worst possible time.
For a restaurant, caterer, grocery, brewery, or any business that keeps food or temperature-sensitive inventory on hand, that gap is real and specific.
Why Standard Property Doesn't Cover It
Commercial property policies are built around named or broad perils — events like fire, water, wind, or theft. Mechanical breakdown of a refrigeration unit doesn't qualify as a covered peril under most standard forms. Neither does a utility outage that wasn't caused by a covered event on the insured premises.
Spoilage coverage addresses this directly. It's typically added as an endorsement or written as a separate inland marine form, and it covers the value of perishable stock when it's lost due to breakdown of refrigeration equipment or a covered utility interruption.
Who Carries This Risk
Restaurants and bars are the obvious cases, but the exposure extends further than most agents check: caterers, food trucks, specialty grocers, meat markets, florists, pharmacies storing temperature-sensitive medications, breweries and wineries, and any food manufacturer or distributor with refrigerated storage.
For these clients, the value of perishable inventory can represent a significant portion of their working capital. A single equipment failure — especially over a weekend when it isn't discovered until Monday — can result in a total loss of that inventory with no coverage under the standard policy.
The Conversation to Have
The question is simple: does your client keep perishable inventory, and what would it cost to replace it after a weekend equipment failure?
If the answer is yes and the number is meaningful, spoilage coverage is worth pricing. It's typically inexpensive relative to the exposure, and it's the kind of coverage clients remember when they need it — and remember you for having.