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What You Need to Know About Food Manufacturing and Bakery Insurance
What is food manufacturing insurance?
Food manufacturing insurance covers a wide range of policies available to help protect against the risks faced by food and beverage manufacturers and bakeries in California. There isn’t a single bakery insurance policy that covers your entire range of risks — instead, policies are tailored to fit the specific needs of your company! Your business is unique, which means your insurance needs to be unique as well.
There are coverage options for every type of food manufacturer or processor you can imagine. Some examples include:
- Commercial Bakeries
- Dairy Processors
- Grain Millers
- Meat Processors
- Nut Hullers
- Pasta Manufacturers
- Poultry Processors
- Frozen Food Manufacturers
What insurance do bakeries and food processors need?
The exact coverage you decide on will vary based on your business’s needs and risks. However, a few types of food manufacturing and bakery insurance coverage we recommend including the following:
- General Liability — Protects you and your business if a guest is injured or your business’s operations accidentally cause property damage, product damage, copyright violation, and more.
- Commercial Property — Offers a financial safety net if disaster hits and your business’s property is damaged by fire, weather, or smoke.
Bakery Manufacturing Insurance — Bakery manufacturing insurance is designed to protect businesses against risks such as equipment malfunctions, product liability, property damage, and the interruption of business.
- Bakery Equipment Insurance Coverage — Insurance for bakery equipment provides coverage for bakery and manufacturing equipment such as industrial size mixers, ovens, ranges, fridges, ventilators, and other appliances from damage by fire, theft, and vandalism. Coverage may also apply for malfunctions, repairs, and replacement.
- Equipment Breakdown — Freak accidents happen, and running your business becomes much more challenging when they happen to expensive equipment. Equipment breakdown insurance will cover the cost of repairing or replacing equipment and can provide compensation for lost income during halted production. Read more about equipment breakdown insurance.
- Spoilage Coverage — Spoilage is a well-known facet of the food industry. You ensure your top-quality ingredients are used before going bad, but sometimes you can’t control spoilage. Spoilage insurance helps you recover costs when equipment breaks down, the power goes out, or your stores are contaminated.
- Workers Compensation — Provides coverage for medical expenses, rehabilitation costs, and lost wages for employees who are injured or become ill at work.
- Commercial Auto — Commercial auto insurance provides valuable protection for your company-owned vehicles, leased or rented vehicles, and your employees' vehicles used for business purposes.
How much does bakery insurance cost?
Bakery insurance typical ranges from a few hundred dollars a year into the thousands, depending on the size, location, and products sold. While the cost of a policy is important, it's important to choose an insurance policy based on your needs as a business. Meeting with an experienced insurance agent can help you better understand the costs and benefits of bakery insurance.
What is product liability insurance?
Product liability insurance sounds very similar to general liability insurance, but they are not the same. Where general liability protects you if someone is injured because of your business’s operations, product liability protects your business if your product makes a consumer ill.
Product liability insurance helps cover medical bills and recovery costs for the affected consumer and legal costs if your business faces litigation due to your product.
What does product recall insurance cover?
As the name implies, product recall insurance will cover expenses associated with recalling a product. Expenses can include customer notification, shipping costs, and safe disposal costs.
California product recall insurance may not seem vital at first but remember you don’t always have a choice when it comes to recalling a product. If one of your ingredients is recalled by a regulatory agency or the government, you need to issue a recall for your own product.
Recalls are especially hard on smaller businesses because they have a more difficult time recouping recall expenses. If your California food manufacturing operations or bakery are on the smaller side, it’s not a bad idea to keep this coverage in your back pocket.
As a food manufacturing and bakery insurance professional, I strive to know you and your worries. I spend time listening and learning to help you find solutions and better serve you.
You’ve worked hard to build your food processing business. The next step is to protect it. We’ll assess your risks and help you tailor an insurance policy.
I’d love to chat with you. Contact us today!