What it does

CP 04 40 turns the coverage form into a spoilage coverage for "perishable stock" at the described premises, owned by the insured or held for others. "Perishable stock" is personal property kept under controlled conditions and susceptible to loss if those conditions change. The Schedule activates one or both causes of loss:

• Breakdown or Contamination: a temperature or humidity change from mechanical breakdown or failure of refrigerating, cooling or humidity-control equipment at the premises, and contamination by refrigerant.
• Power Outage: a temperature or humidity change from complete or partial interruption of electrical power on or off premises due to conditions beyond the insured's control.

Key provisions (12 20 edition)

• The endorsement has its own limit and its own deductible. No other deductible in the policy applies to it.
• The Selling Price option values finished perishable stock at selling price less discounts and expenses.
• Only selected Causes of Loss exclusions carry over: earth movement, governmental action, nuclear hazard, war, water, and the applicable cyber incident exclusion.
• Added exclusions cover disconnection of equipment from power, switching off power, utility inability to supply power from lack of fuel or governmental order, insufficient on-site generating capacity, and breakage of glass in refrigeration units.
• Property on buildings, in the open or in vehicles is not covered, and the CP 00 10 coverage extensions do not apply.
• If a refrigeration maintenance agreement is shown, the insured must keep it in force. Voluntarily ending it without notice affects breakdown coverage.

Quoting and selling notes

• Ask what stock is refrigerated, its peak value, whether there are alarms or backup generators, and whether a service contract exists.
• Equipment breakdown coverage may also cover spoilage from mechanical breakdown. Coordinate the two to avoid gaps or overlaps.
• For income lost during a utility outage, add CP 15 45.