A machinery breakdown can cause more than damage to the machine itself.

For businesses relying on refrigeration or temperature-controlled equipment, a breakdown can also result in substantial stock losses.

What is deterioration of stock cover? #

Deterioration of Stock Insurance can cover certain loss or damage to stock following an insured event affecting refrigeration or other specified machinery.

Depending on the policy, this can include stock that:

• Spoils.
• Deteriorates.
• Becomes unsafe.
• Can no longer be sold.

What businesses can have this exposure? #

Examples include:

• Restaurants.
• Cafés.
• Butchers.
• Bakeries.
• Supermarkets.
• Food manufacturers.
• Cold-storage facilities.
• Medical businesses.
• Pharmacies.
• Businesses storing temperature-sensitive products.

Is Deterioration of Stock automatically included? #

No.

It can be an optional extension or separate section with its own limit.

The schedule should be checked.

What can trigger the cover? #

Depending on the wording, the stock loss may need to result from an insured machinery breakdown.

Some policies may also address specified failures affecting refrigeration equipment.

How much stock should be insured? #

Consider the maximum value that could be exposed at one time rather than simply the average stock level.

Seasonal peaks and major deliveries can materially increase the potential loss.