The situation
A food distributor held chilled and frozen goods in a leased cold store in one of the industrial areas. The fire policy covered contents but excluded deterioration of goods in cold chambers unless a deterioration of stock extension was in force, and no such extension had ever been bought. The declared stock figure had not moved for years while the business grew, so the chambers were carrying more than the sum insured. A compressor failed over the weekend and was not found until the store reopened, by which point the stock had to be condemned.
What we did
We read the policies the client already held and found the compressor itself insured under a machinery breakdown section, so the plant repair was presented there while the stock loss was pursued against the refrigeration maintenance company under its own liability cover. For the following term we placed a deterioration of stock extension covering both breakdown of the refrigeration plant and failure of the public supply, moved the stock sum insured to a declaration basis that tracks the season, and set out in writing the maintenance contract and temperature alarm conditions the extension carries.
- Sector
- Cold Storage
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