THURSDAY, MAY 20, 2021
If you own a food delivery service or transport temperature-sensitive goods from one location to the next, your commercial auto insurance needs to reflect the risks you face in case your truck’s cooling system fails. All operators face this potential risk regularly and your inventory can be irreparably damaged. The right commercial auto insurance can help minimize financial losses in these situations. 
What Does Spoilage Coverage Offer?
When considering commercial auto insurance policies, pay close attention to the details of the plan. Your policy should offer spoilage coverage, which is essential for those who carry any type of goods that need to be in a temperature-controlled delivery system at all times. Spoilage insurance can help you recoup the losses associated with accidental or unexpected breakdowns of your mechanical systems. Spoilage coverage doesn’t provide help in situations where the normal wear and tear causes the breakdown or from incidents resulting from poor maintenance.
This type of business insurance can help with the costs associated with replacing lost inventory. You should provide information about the cost of what you’re transporting as well as how the breakdown occurred. For many businesses that maintain a high level of inventory for delivery or transport from one area to the next, this type of spoilage coverage can be valuable —as it is otherwise impossible to minimize the financial impact of a breakdown.
If you don’t have sufficient commercial auto insurance, it’s time to update your existing policy to better reflect your needs. Keep in mind that all types of businesses operating refrigeration trucks — or any other trucks used to keep inventory at a proper temperature — should consider this investment. This protection can’t always be found on average policies, though. Check to see if it’s listed on your business insurance policy and be sure the coverage amount represents at least the amount of value you transport on any given day.
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