Glossary

Spoilage coverage

Canonical definition

Spoilage coverage is policy or endorsement coverage for loss to perishable stock after a qualifying change in temperature, humidity, contamination, or power event. The covered cause, location of the interruption, exclusions, and limit are all form-specific.

Spoilage coverage is not a universal “food went bad” promise. Northern Spy Food involved a restaurant’s food-spoilage claim after an off-premises power failure, and the court analyzed the endorsements and exclusions actually in the record. Use the policy schedule to identify the covered causes, whether off-premises utility interruption is included, and the limit that applies to perishable stock.

Sources

  1. Primary source: Northern Spy Food Co., LLC v. Tower National Insurance Co. — Published New York record deciding a restaurant’s food-spoilage and business-income claim by applying the particular power-failure, spoilage, and flood terms at issue.