What it does
Ordinary property and business income coverage requires direct physical loss from a covered peril, and CP 01 40 excludes virus and bacteria losses. CP 15 05 adds a separate Additional Coverage to CP 00 30 for food businesses. If the scheduled business is ordered closed by the Board of Health or another governmental authority because of the discovery or suspicion of "food contamination", it pays:
- The expense to clean equipment as the authority requires.
- The cost to replace food that is, or is suspected to be, contaminated.
- Necessary medical tests or vaccinations for potentially infected employees, if not covered by workers compensation.
- Business income loss during the suspension, starting 24 hours after notice of closing.
- Additional advertising expenses to restore the business's reputation.
Key provisions
- A Food Contamination Limit (annual aggregate) applies to the first four items. A separate Additional Advertising Expense Limit (annual aggregate) applies to the advertising.
- The coverage is triggered by a government closure order. Contamination without a closure order is not covered.
Quoting and selling notes
- A health department closure after a foodborne illness report is a real exposure for any restaurant. This is an inexpensive way to address it.
- Liability to customers who become ill is covered by the CGL, not this endorsement.
- Spoilage from refrigeration failure is a separate coverage (CP 04 40).
