When things go wrong at work, you could face two types of consequences: immediate challenges and long-term repercussions. Unfortunately, business interruption risks – those factors
Food & Beverage Producers’ Insurance
Whether you work with seafood, strudel, spices, or soda, you face different risks and challenges than other types of manufacturing companies. From the raw goods stage through processing, packaging, and distribution, your operations count on a variety of tools, procedures, and people.
We’re here to help protect your livelihood with food and beverage insurance to address problems that can arise in the factory and beyond.
What kind of insurance coverage do food & beverage producers need?
We’ve compiled our food and beverage insurance policy to address common challenges, concerns, and demands at each step of the way.
When can food & beverage insurance come to your rescue?
Food manufacturers can face major problems when their products don’t measure up. A small mistake in the production phase could compromise the finished product, and any amount of contamination can be dangerous – to the health of your customers and for your reputation.
Make sure you’re covered for all sorts of scenarios by adding some specialized extensions to your basic Commercial General Liability (CGL), Property, and Auto insurance coverage.
Need more? No problem.
We have some automatic extensions too, like Product Recall Expense, Negative Publicity, and Defective Goods Repair or Replacement Extension for claims made.
Pulling a product? We can lend a hand
Contamination is a major threat in the food and beverage manufacturing industry, and it can pose a challenge well before any illness is reported. For instance, if you were to suspect a defect with your vegetables during the canning phase, you might voluntarily recall the suspicious batch. The good news is that your customers didn’t get sick; the bad news is that you’ve had to fork out a big sum to cover the costs of the recall.
Product Recall Expense coverage would take care of some recall-associated expenses, and a related extension – Manufacturers’ and Wholesalers’ Product Impairment – would reimburse your loss of business income that resulted from the recall (up to $50,000). The same coverage applies to both government mandated safety recalls and any recall that you, the manufacturer, deem necessary.
Bounce back from media mayhem
Not all contaminated products are caught before they can be consumed, and unsavoury stories about your production process can spread quickly through the media. When a negative story emerges, it could put your product – and your reputation – on thin ice, with once loyal consumers turning to competitor brands, and lost sales leading to financial hardship.
Our Negative Publicity coverage will help you recoup some costs when bad publicity leads to a loss of business income. It doesn’t stop there – the coverage also applies to lost business income from negative publicity surrounding certain incidents that affect other manufacturers who offer similar products.
Protect your product when it hits the road
If you need to transport your meat, dairy, or perishable produce, you’ll want to make sure that cargo is protected in case there’s an incident en route. For instance, a frozen food manufacturer who transports their peas and carrots from the processing plant to a warehouse has a lot riding on their refrigerated truck: if the refrigeration unit breaks down while stuck in traffic, the whole load could spoil, and they would be out a lot of money.
Motor Truck Cargo coverage would be extremely helpful in a case like this. With the reefer breakdown coverage extension, the manufacturer would be covered for the loss of the spoiled product. They would also be covered for loss or damage to their stock resulting from fire or theft, or damage due to a vehicle collision, whether the problem occurred while in transit or during the loading or unloading phase.
We know that the risks your food or beverage manufacturing business faces are different than the risks affecting other manufacturing businesses. We also believe that you can help to defend against your unique set of risks with the right information and some smart guidance.
Our value-added services focus on helping you identify and mitigate the risks your business faces each day. An assessment of your protection systems, hazardous materials, and best practice risk control measures can help uncover the inherent risks associated with the equipment and materials you use. In-person consultations carried out by experienced risk services professionals can leave you with the knowledge and confidence you need to protect every aspect of the business you’ve worked so hard to build.
Resources for Manufacturing
Business owners face unique risks that could land them in legal trouble. With our industry expertise and a substantial network of top brokers, we can help protect your company with the right liability insurance.
Have you considered what would happen if something caused you to close up shop or suspend production for a while? Are you sure your business could survive the setback? Learn why business interruption insurance is so important to keep your company going.