Restaurant insurance guide
Food spoilage and equipment breakdown
When a walk-in fails on a Friday night, you lose inventory and sales. Two endorsements address that.
Equipment breakdown
Covers sudden mechanical or electrical breakdown of refrigeration, cooking equipment, HVAC, and electrical panels, including repair costs and, often, resulting spoilage and lost income.
Spoilage
Covers food that spoils because of a power outage, refrigeration breakdown, or contamination, up to a set limit. Check whether off-premises utility failure is included.
Prevention
- Temperature alarms that alert your phone
- Regular maintenance on compressors and condensers
- Surge protection for electronics
- A plan to move inventory if a unit fails
Frequently asked questions
Does standard property insurance cover a broken walk-in compressor?
Mechanical and electrical breakdown is usually excluded from basic property coverage; equipment breakdown coverage fills the gap.
Is spoilage from a utility outage covered?
Only if the policy includes utility service interruption or spoilage coverage that applies to off-premises power failure.
How much spoilage coverage do I need?
Enough to replace your peak inventory of perishable food and beverages.
More coverage and guides
- General liability for restaurants
- Liquor liability insurance
- Commercial property for restaurants
- Workers' compensation for restaurants
- Business owners policy for restaurants
- Commercial auto and delivery coverage
- Catering insurance
- Food truck insurance
- Liquor liability laws by state
- What affects restaurant insurance cost
- Restaurant risk management checklist
- Food spoilage and equipment breakdown
- Restaurant insurance application checklist
Last updated October 15, 2026 · How we research