March/April 2010 The Insurance Professional Four Facts about Perishable Goods Coverage It's Not Just for Food and Beverages, Many Businesses are at Risk Perishable Goods coverage is not just for restaurants and supermarkets. Although businesses that focus on food products and services are likely to include Perishable Goods coverage in their equipment breakdown program, many other classes of businesses are exposed to significant losses from spoilage. DRUGS, COMPUTER CHIPS Manufacturers work with many types of vulnerable products and raw materials. High-tech operations often can't tolerate any contamination by dust or dirt, or temperature changes of even tenths of a degree. Hospitals, clinics and other health care facilities must store blood supplies, medicines and specimens with care. ICE CREAM AND FOOD OPERATIONS In addition to restaurants and supermarkets, locations such as schools, nursing homes and convenience stores keep food which can spoil as a result of a breakdown. Food processing and cold storage facilities are especially vulnerable. Two examples: HSB paid almost $300,000 for ice cream which melted as a result of a refrigeration breakdown; and $100,000 for frozen squid that thawed when a compressor broke down. COVER SPOILAGE DUE TO EQUIPMENT BREAKDOWN Perishable Goods coverage from HSB pays for spoilage of food, manufactured goods or other perishables following an electrical or mechanical breakdown covered under the equipment breakdown policy. It also can cover the loss of perishables due to ammonia contamination and goods damaged by a utility service interruption. FACTS ABOUT PERISHABLE GOODS COVERAGE Perishable Goods coverage protects more than food. Manufacturing products and raw materials such as plastics, medicines and test samples are other examples. Perishable Goods is not just refrigeration coverage. Anything that can be spoiled by a change in conditions is considered "perishable goods." Perishable Goods is not just temperature coverage. HSB's Perishable Goods coverage includes loss from the breakdown of utility equipment. CONTACT YOUR HSB REPRESENTATIVE HSB's Freestyle® equipment breakdown policies provide your customers with broad coverage. Or you can choose to package equipment breakdown with the small business policies of more than 200 property-casualty companies that partner with HSB. We'll work with you to do what's best for your clients. For more information, contact your HSB representative, or call us toll-free at 1-800-HSB-1866. Hartford Steam Boiler - One State Street - P.O. Box 5024 - Hartford, CT 06102-5024 Phone: 860-722-1866 - Fax: 860-722-5106 ©1996-2010 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.