This policy protects against the cost of unforeseen damage for owned goods and goods under the care, custody, and control of other parties as a result of the rise or fall in temperature due to a breakdown in the refrigeration unit.

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If you are one of the owners of stores that contain goods, especially those at risk of damage or corruption, then Deterioration of stock insurance policy is an indispensable necessity.

Deterioration of stock insurance is one of the insurance services that covers accidental physical loss and damage to goods stored inside refrigerators, cold stores and freezing, resulting from temperature imbalance due to a sudden unexpected accidental accident to refrigeration or freezing machines, or sudden and unexpected leakage of refrigerant gas (freon) inside the cold rooms, provided that this malfunction or damage is covered under the machinery malfunction policy.

Due to the previous circumstances, owners of stores of this type may suffer a heavy material loss in their inventory if it is damaged or they may be subject to legal accountability by the owners of the goods.

Deterioration of stock insurance therefore provides coverage for loss or damage to goods stored in any specific refrigerated storage space, due to deterioration or rotting.

What is stock corruption and what are its causes?

Stock corruption is an expression that refers to the deterioration of products that are stored in a large area of space, where stock corruption can occur due to failure of refrigeration and other cold storage equipment.

Many utility companies, hotels, restaurants and other large companies use cold storage of goods, which can be in the form of food, flowers, medical or cosmetic products.

The slightest change in the temperature of these places - as a result of any failure in the electricity or the machinery itself - is the cause of the goods and inventory to deteriorate very quickly, especially if these goods need a certain temperature to remain in their serviceability.

Deterioration of stock insurance is a policy that covers damage to goods stored in designated refrigerated storage areas, which occur as a result of temperature change caused by failure or accidental damage to refrigeration equipment.

Thus, the Deterioration of stock insurance policy provides insurance coverage for any damage or waste resulting from a significant rise or drop in stock temperature due to any of the following:

  • Accidental breakdown or damage to refrigeration equipment.

  • Do not operate the devices used to control this equipment.

  • General power outages and losses.

  • Damage caused by leakage of refrigerant vapors.

A regular commercial Deterioration of stock insurance policy may not cover the value of lost inventory in some scenarios where this damage occurs as a result of negligence or any kind of intentional sabotage, so obtaining a Deterioration of stock insurance policy with clear details of what it covers is the best way to protect your inventory from damage or any accidental event.

Who needs a Deterioration of stock insurance policy?

This cover is designed for institutions with greater exposures. A customer who keeps a few hundred pounds of inventory in a refrigeration facility is usually able to arrange sufficient cover under a standard uniform trade policy. Potential customers can include wholesale food merchants, retailers, hoteliers, catering companies, as well as pharmaceutical companies.

Among the most important people who need an Deterioration of stock insurance policy are the owners of companies that store refrigerated or frozen products, especially those that require careful follow-up, temperature control or inciting handling, the possibility of damage to goods and exposure to financial loss is great, including:

  • Owners of cold rooms.

  • Users or tenants of cold rooms.

  • Farms where agricultural products are manufactured or processed and stored.

  • Manufacture of processed meat and fish.

  • Food preservation industry.

  • Sellers of fruits and vegetables.

  • Fisheries industries.

  • Dairy producers.

  • Food preservation industries.

  • Chemical and pharmaceutical industry companies (finished and semi-finished products).

  • Food truck owners.

  • Butcher.

What is the coverage area of Deterioration of stock insurance?

Deterioration of stock insurance covers damage to products and goods stored in designated refrigerated locations, mainly due to the change in temperature resulting from failure or accidental damage to refrigeration equipment.

Insurance companies provide wide coverage to owners of this type of trade where the customer is covered in the event of a malfunction in the public electricity generators located in the store or as a result of leakage of refrigerants and other reasons.

Compensation in this type depends on the size and type of inventory, the main reason behind its corruption, the type of policy and the conditions and rules stipulated in this event; the insurance company begins to compensate the stakeholders for such financial loss in full and bear the expenses of compensating the traders.

Clarify Deterioration of stock insurance against risks facing customers

The Deterioration of stock insurance policy covers only the financial value of goods and products lost or damaged after the failure of the cold store, but most likely the financial loss is not the only loss that business owners may face, while other costs can include the following:

  • Repair or replacement of damaged machinery.

  • Arrange early disposal or transfer of inventory.

  • Increased labor costs.

  • Compensate for stock damage.

At Brokerage Insurance, we offer you Deterioration of stock insurance as one of our basic services, where you can contact our customer service team to learn all the details, get offers and prices, and clarify the services you need in full, in addition to that, you can choose the document, fill out the registration form, and get all the benefits through the Brokerage Insurance application.