Deterioration of Stock in Cold Storage insurance provide indemnity against loss due to deterioration of goods placed in cold storage, which might arise due to a breakdown of refrigerating machinery.

The event resulting in deterioration of stock in cold storage must always be an indemnifiable breakdown of machinery, i.e. loss of or damage to the refrigerating equipment, which is covered under a machinery Breakdown insurance policy.

Therefore, a Deterioration of Stock policy can only be taken out in connection with a Machinery Breakdown cover. The policy includes deterioration damage due to refrigerants escaping or leaking as a consequence of an indemnifiable machinery breakdown.