Insurance seems like a waste of money.
Until you need it.
Commercial insurance is critical for any small business or startup, but when you’re dealing with the production of food and beverage products, whether yourself or with a contract manufacturer, it’s not just critical; it’s imperative.
Here is a list of the most prominent coverage options for food and beverage manufacturers. While it is likely you will find you can do without many of these policies, it is important to understand them to apply to your specific business’ needs.
Equipment breakdown insurance covers loss due to mechanical or electrical breakdown of any type of equipment. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown.
Commercial property insurance protects against damage to your building and contents. It also covers cost of income or an increase in expenses that result from damage to the property.
Spoilage and contamination coverage is an endorsement for your commercial property insurance policy. It kicks in when, for example, food or product spoils or is contaminated due to a power outage that may cause the heating or cooling system to stop working.
Workers’ compensation coverage provides wage replacement and medical benefits to employees injured over the course of employment, in exchange for mandatory relinquishment of the employees’ right to sue their employer for the tort of negligence.
Commercial auto insurance covers company vehicles and/or delivery trucks.
Property-in-transit insurance specifically covers damages if anything happens to your food or beverages during shipment.
Food liability insurance covers claims from people eating or using your foods and beverages. This covers claims that your product causes bodily injury or property damage. For example, your “nut-free” food somehow got cross-contaminated with almond butter. Or someone chokes on a piece of wrapper. You just never know what kind of bizarre situation might arise.
Employment practices liability insurance (EPLI), if you have multiple employees, offers protection from employment-related claims not covered by your general liability insurance and other types of policies. It covers a range of risks, from wrongful termination, sexual harassment, contract violations, and wage/hour law violations to breach of contract, invasion of privacy, discrimination, and more. In the event of a claim, EPLI covers the expenses if you are sued, the settlement costs should you choose to negotiate, and the monetary damages awarded by a jury if you were to lose the case.
Cyber liability insurance, in the event of a cyberattack, covers expenses such as credit monitoring for affected customers, lost revenue, crisis and reputation management, customer notification, investigation of the attack, regulatory actions, incident response costs, transmission of viruses, network security, business interruption expenses, extortion expenses, and data loss and restoration.
Inventory loss insurance covers costs due to vandalism, theft, weather, disaster, or other issues.
Business interruption insurance covers scenarios when something – a component to a machine or an ingredient, doesn’t become available, and therefore “interrupts” production.
Product recall expense insurance covers the costs of notification, employee expenses, inspection, shipping, transportation, and disposal of the defective product.
Product recall liability insurance extends liability protection while also covering defense and courts costs that might arise from a recalled product.
Lastly, a commercial umbrella policy provides additional layers of protection for your business for situations when your other insurance policies are insufficient to recover fully from damage or claims.
Wanting to save money on insurance is understandable. However, it’s impossible to predict when unfortunate events might occur.
Don’t risk closing down your business just to save a few hundred dollars.
By working with an independent insurance agency like Seely & Durland with experience helping food manufacturers, you can rest assured your business is properly covered.
With an independent agency like SDI, you get choices.
Why? Because we represent dozens of insurance companies and our specialist can compare coverage and prices to find the best possible value for your individual business’ circumstances. With other agencies, you get one company that sells one brand of insurance. At SDI, we’ll work with you to understand your unique insurance needs and follow up with many fine insurance providers to deliver high-quality, affordable insurance options tailored to deliver the value and coverage you’re seeking. We are committed to doing business face-to-face and being your advocate in times of need.
Ultimately, we will do all the work for you!
We are your insurance solutions provider, partner, and adviser, serving Warwick, Greenwood Lake, Florida, Goshen, Pine Island, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley, state of New York, and Tri-State Area.
For more information, please contact us at 845-986-1177, or fill out our short form below for a free consultation, and we’ll get right back to you!