Deterioration of Stock

Deterioration of Stock

Deterioration of stock policy provides cover against loss due to deterioration, putrefaction or contamination of goods placed in cold storage which might arise due to rise in temperature in the cold store chambers as a result of breakdown of refrigerating machinery. The event resulting in deterioration of stock in cold storage must always be identifiable, i.e. loss of or damage to the refrigerating equipment which is covered under a Machinery Breakdown policy. Therefore, a deterioration of stock policy can only be taken out in connection with a Machinery Breakdown cover.