Don't mean to be a dick, but chest freezers are made by having the evaporator coil and condenser coil layered with a peace of foam between them. The condenser coil is on the outside and the surface of the exterior allows the heat to transfer to the ambient air. I'm worried that the wood insulating the exterior will cause excess head pressure and at best cause the freezer not to cool and at worst cause a premature compressor failure. That said, since it is being used as a cooler instead of a freezer you may be OD. Let me know how it goes.