Does business insurance for restaurants cover food spoilage?

Spoilage can wreak havoc on your business if you have a restaurant. Thankfully, you can get restaurant insurance coverage for food spoilage.

Marcel Deer - Writer for NEXT Insurance
By Marcel Deer
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 29, 2023.

Restaurant insurance can include commercial property insurance, which has coverage for food spoilage.

Food spoilage can typically happen to any food or beverage that needs cooling or heating. It can disrupt restaurants plus impact their bottom lines. So, let's look at some coverage specifics.

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How Restaurant insurance can help

If commercial property insurance is included in your restaurant business insurance, inventory spoilage can be covered. This specific coverage is often called business personal property (BPP) insurance.

Some examples of when food spoilage can be covered include:

  • If there's a power outage and the food inventory in the restaurant refrigerator and freezer spoils.
  • If a refrigerator or freezer at your restaurant breaks and causes food spoilage, this coverage can cover the equipment and inventory loss.
  • Customer illness due to accidentally serving spoiled food can be covered through general liability, which is often part of restaurant insurance.

Coverage limits and deductible amounts may vary depending on the type of coverage you purchase.

What is not covered?

Some spoiled food may not be covered, depending on what caused the spoilage. Some examples include:

  • Food that naturally went bad after its expiration date.
  • If an employee intentionally turns off or destroys cooling or heating equipment, causing food spoilage.

How NEXT Insurance protects restaurants

Food is a fundamental part of the inventory for any restaurant. So, ensuring you protect your business from financial losses or business interruptions because of spoiled food is a great idea.



With NEXT, you can get affordable and fast business insurance for restaurants tailored to cover food spoilage. To view your options, simply apply online and get an instant quote in under 10 minutes. Once you've purchased the insurance you need, you can instantly share your certificate of insurance anytime, anywhere and for free.

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