Deterioration of Stock Insurance

Covers you for damage to goods in refrigerated cabinets or chambers caused by the malfunction of refrigeration machinery.

Why would I need Deterioration of Stock Insurance?

If your company stocks chilled or frozen products, especially those that require careful monitoring, temperature controls or handling, the potential for loss is high. Insuring your stock means you won't be set back for long. Deterioration of Stock Insurance includes reasonable expenses for avoiding or minimizing damage. It's worth knowing that your existing contents and stock policies do not cover this type of claim. 

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What does this mean for your industry?

What's covered?

Damage or destruction to chilled or frozen stock caused by:

  • Accidental stoppage of equipment
  • Damage to equipment
  • Malfunctioning equipment
  • Reasonable costs of avoiding or minimising damage to stock

What's not covered?

  • Notified disconnection of the power
  • More than $2,000 per cabinet
  • More than $5,000 per year
  • Cost of repairing the refrigeration machinery
  • Damage to the stock from anything other than change in temperature

These lists highlight some of the inclusions and exclusions in this policy. For full details of all inclusions and exclusions, see the policy document.

Deterioration of Stock Insurance in action

A butcher putting meat in a freezer



A walk-in freezer broke down over the weekend, spoiling hundreds of dollars worth of meat. Scott's Deterioration of Stock cover compensated him for the value of the ruined goods. If your business relies on refrigeration to preserve your stock, it's worth also considering cover for the refrigerators under Equipment Breakdown insurance.

A worker kneeling down next to a mini fridge


Food Truck Owner

When Aroha discovered that her chiller had stopped working, she was forced to dispose of all her cold stock for the safety of her customers. Her Deterioration of Stock Insurance made up for the cost of replacing the food and drinks, while her Equipment Breakdown cover helped repair the chiller.

A person holding a cup, standing next to a fridge full of milk


Juice Bar Owner

The power went off unexpectedly at Matthew's juice bar overnight, causing his stock of pre-made drinks and some temperature sensitive ingredients to spoil before he arrived in the morning. Because Matthew hadn't been notified about any power outage, he was able to claim back the loss of the drinks on his Deterioration of Stock cover.

These fictional scenarios were created to illustrate the benefits of Deterioration of Stock Insurance. All claims are subject to the terms and conditions in the policy document.

Let's get things sorted

Speak to a Small Business Insurance Consultant

Call us on 0800 500 231