What Every Food Business Needs To Know When The Fridge Breaks And The Prawns Go Off
RSM Tasmania is the local insurance broker Tasmania trusts when you’ve prepped the seafood platter, stocked the cool room, and the weekend rush is just a few hours away… And disaster strikes.
The fridge dies, the prawns have turned, and your chef is looking a little green around the gills. 😵💫
Whether you run a café, food truck, deli, restaurant, or bakery, refrigeration breakdowns are just one of many risks lurking beneath the surface. So how do you protect yourself when your business is your stock?
🍤 Perishables, power and problems
Let’s talk spoilage. When refrigeration equipment fails — whether from a power outage, mechanical fault, or sheer spite — you can lose thousands in stock before you even open your doors.
If your insurance doesn’t specifically include deterioration of refrigerated goods or equipment breakdown, you might be footing the entire bill yourself. Some policies cover this, but many don’t. And yes, you usually need to list it separately.
⚖️ Who’s liable if a customer gets sick?
Food poisoning claims are no joke — for your customers or your business. If a dodgy batch slips through and someone ends up in hospital, you could be looking at legal fees, compensation payouts, and a nasty reputation hit.
That’s where product liability cover comes in. It helps protect you if a customer gets sick, allergic, or injured because of something you’ve served. (And if you’re also the manufacturer or processor, you’ll need even broader coverage.)
🧯Other things worth insuring (because chaos never calls ahead)
- Glass doors on fridges – surprisingly expensive to replace
- Power surges – fried compressors aren’t a quick fix
- Business interruption – if you have to close your doors after an incident
- Public liability – for slips, trips, and the classic “I burnt my mouth” claim
- Cyber cover – because POS systems and bookings get hacked more than you think
🛡️ Insurance should be as tailored as your menu
Every food business is different. A bakery has different risks to a food truck. A seafood wholesaler faces different exposure to a café. That’s why cookie-cutter insurance policies just don’t cut it (pun very much intended).
At RSM Tasmania, we work with local food businesses to make sure they’re not left out in the cold (…or heat) when things go wrong.
Not sure if your cover includes equipment failure or stock spoilage? Want to make sure you’re ticking all the right boxes for your type of business?
We’re happy to help you review your current cover or set something up that truly fits.
🧠 Useful link:
If you run a food business (or are thinking of starting one), it’s worth checking your local and state requirements — including licensing, council approvals, and food safety regulations. The Australian Business Licence and Information Service (ABLIS) can help.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email .
