How Insurance Companies Underpay Grocery Store Claims
Insurers use predictable tactics to minimize food retail claims. Recognizing these tactics shows why specialized representation matters.
Wholesale Cost Valuation Fraud
Your refrigeration system failed, spoiling $80,000 of inventory at retail value. The insurer offers $30,000 based on wholesale cost.
They argue you only paid wholesale prices, so you only lost wholesale value. This ignores that you lost the retail profit margin on every spoiled item.
You purchased products to sell at retail prices. Your loss is the retail value you could not recover. We document retail values using POS data and fight for full compensation including lost profit margins.
Causation Disputes for Spoilage
Power outage spoiled your inventory. The insurer claims the spoilage resulted from delayed disposal, not the power outage itself.
They argue you should have obtained emergency power immediately. They claim you waited too long before throwing out compromised products.
FDA regulations require disposal of food held at unsafe temperatures for specific periods. We document temperature logs, power outage duration, and food safety requirements proving immediate disposal was mandatory.
Equipment Maintenance Exclusions
Your walk-in cooler compressor failed, spoiling $40,000 of products. The insurer denies the claim, citing deferred maintenance.
They point to normal wear on equipment as evidence of neglect. They claim you should have replaced the compressor before it failed.
Equipment breakdown coverage specifically covers sudden mechanical failures. We hire refrigeration experts who document the failure occurred suddenly and unpredictably, meeting policy requirements for coverage.
Business Interruption Limitations
Fire closed your supermarket for 45 days during repairs. The insurer calculates business interruption for only 20 days, claiming you reopened too slowly.
They argue you should have opened in a temporary location or reopened faster. They refuse to pay lost income for the full closure period.
We document why repairs took 45 days. We prove temporary locations weren't feasible for grocery operations requiring refrigeration, shelving, and checkout systems. We recover lost income for the actual recovery period.
Partial Salvage Arguments
Water damage affected three aisles of packaged goods. The insurer claims most products can be salvaged because packaging appears intact.
They refuse to pay for products they claim are still sellable. They minimize losses by arguing contamination wasn't complete.
Health department regulations prohibit selling products exposed to contaminated water. We document regulatory requirements and prove all affected products require disposal and replacement.
Sub-Limit Applications
Your policy includes a $25,000 sub-limit for spoilage coverage. You suffered $80,000 in spoilage losses plus $60,000 in equipment damage and $100,000 in business interruption.
The insurer applies the spoilage sub-limit to minimize total payout. They refuse to consider other coverage provisions that might apply.
We analyze policy language carefully. We claim spoilage under multiple provisions including equipment breakdown, property damage, and business personal property. We maximize recovery by using all available coverages.
