Key Highlights
Protection Against Equipment Failure
Covers loss of stock due to breakdowns in refrigeration or climate-control systems, ensuring minimal business disruptions.
Comprehensive Coverage for Perishable Goods
Safeguards various perishable items, including food, pharmaceuticals, and chemicals that require specific storage conditions.
Coverage for Power Failures
Protects against spoilage resulting from unexpected power outages or voltage fluctuations affecting storage units.
Compensation for Financial Losses
Provides reimbursement for the value of damaged goods, preventing revenue loss and financial instability.
Customizable Sum Insured
Policyholders can tailor the sum insured based on the stock value and business requirements to ensure adequate protection.
Extension Options for Additional Risks
Additional coverage options may include contamination risks, temperature deviations due to human error, and transportation-related spoilage.
Exclusions
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Gradual Wear and Tear of Equipment
Losses resulting from normal depreciation or lack of proper maintenance of refrigeration units are not covered.
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Stock Damaged Before Policy Inception
Pre-existing damage to goods before the policy start date is excluded from claims.
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Deliberate Negligence or Mismanagement
If stock deterioration occurs due to intentional neglect or failure to follow proper storage procedures, the claim will be denied.
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Uninsured Events Like War or Terrorism
Damage resulting from war, riots, or terrorist activities is typically excluded unless specifically covered by an add-on.
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Losses Due to Voluntary Shutdown
If a business voluntarily stops operations, leading to stock spoilage, such losses are not covered.
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Non-Compliance with Storage Guidelines
If stock is stored outside the recommended temperature range or conditions defined by industry standards, the claim may be rejected.
Types of Coverage
Basic Deterioration of Stock Policy
Covers deterioration caused by refrigeration or climate control failure, offering standard protection.
Extended Deterioration Coverage
Includes additional risks such as power supply interruptions, mechanical failures, and environmental factors.
Industry-Specific Coverage
Tailored plans for businesses like food processing, pharmaceuticals, or floriculture, ensuring specialized protection.
Transit Coverage for Perishables
Covers stock deterioration occurring during transportation due to unforeseen delays or temperature fluctuations.
Business Interruption Coverage
Includes compensation for revenue loss due to stock deterioration affecting business operations.
Add-on Cover for Contamination Risks
Provides protection against spoilage caused by contamination, microbial growth, or chemical exposure.
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Why is it Essential?
Stock deterioration can lead to substantial financial losses, and this policy ensures compensation, minimizing the impact.
Protecting stock quality prevents disruptions and ensures businesses maintain customer trust and brand value.
Many industries, especially food and healthcare, have strict quality control requirements, making this coverage crucial.
Refrigeration and storage failures can occur without warning; this policy provides a safety net against such risks.
By compensating for losses, businesses can restock without financial strain and continue operations smoothly.
Knowing that perishable stock is protected allows business owners to focus on growth rather than potential losses.
