Does equipment breakdown cover spoilage of refrigerated goods?

Spoilage coverage under equipment breakdown responds when a covered breakdown event causes perishable inventory to spoil. The typical scenario: a walk-in cooler or freezer compressor fails, the temperature rises, and the inventory inside spoils. Standard commercial property excludes this entirely because it's a mechanical breakdown, not a covered peril. Equipment breakdown coverage typically includes a spoilage sublimit, often $10K to $100K depending on policy structure. For larger food-service operations (grocery stores, restaurants with substantial frozen inventory, butchers, ice cream shops), the spoilage sublimit should be set thoughtfully against actual inventory values. Pharmaceutical and biotech businesses with temperature-controlled storage have similar exposure and may need higher sublimits.