What it does
BP 04 31 adds a Food Contamination additional coverage. If the business at the described premises is ordered closed by the Board of Health or another governmental authority because of the discovery or suspicion of "food contamination", the insurer pays the cost to clean equipment as required, the cost to replace food that is or may be contaminated, the cost of necessary medical tests or vaccinations for infected employees (not amounts covered by workers compensation) and the resulting loss of business income.
Key provisions
- Default limits in the 01 06 edition Schedule were $10,000 for food contamination and $3,000 for additional advertising expense unless other amounts are shown.
- Additional advertising expense helps restore the business's reputation after a closure.
Who needs it
Any food service or food retail account where a health-department closure is a real risk. It does not respond to customer illness claims, which are liability exposures.
Quoting and selling notes
- Ask about inspection history and prior closures; size the limit to a few days of revenue plus restocking.
- Sell with spoilage (BP 04 15) and, for restaurants, the Restaurants endorsement BP 07 78.
