A prospective client is a wholesale grocer with ~$7M of inventory in their warehouse, some of which is refrigerated and at risk of spoilage in the event of a power outage. Their current policy has a $100k spoilage endorsement, but it also has $500k of utility services direct damage & time element (combined limit). The Utility Services Direct Damage endorsement states that it covers "loss of or damage to Covered Property at the described premises caused by the interruption of utility service to the described premises.. The interruption of utility service must result from the direct physical loss or damage by a covered cause of loss to any of the utility supply properties…".

Would this include spoilage? e.g. if the insured loses power because an overhead power line (which is included) is downed in a windstorm, resulting in spoilage of perishable stock, would the Utility Services Direct Damage endorsement be triggered? Or would the base property form's exclusion for change in temperature apply — in which case, they would need to rely on the Spoilage Endorsement only? Excerpts from the policy are attached.

Maryland Subscriber