The food and beverage industry is evolving–shouldn’t your insurance coverage?
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 and beverage manufacturers need?
Food and beverage manufacturing depends on specialized equipment and exceptional quality control, and there can be costly consequences when things go wrong in either camp. We’ve compiled our food and beverage insurance policy to address common challenges, concerns, and demands at each step of the way, with coverages like:
We have some automatic extensions too, like Product Recall Expense, Negative Publicity, and Defective Goods Repair or Replacement Extension for claims made.
When can food and 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.
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. Whether your product leads to food poisoning or a story of an employee with an infectious disease turns off your customers, you can be covered for up to $25,000. And 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.
Motor Truck Cargo
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.
Risk management is a smart investment – we provide it at no extra cost!
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 cooking and refrigeration equipment, along with thermal imaging of key electrical systems, can help uncover vulnerabilities in your equipment and materials. 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.
Are you ready to set up a comprehensive food and beverage insurance policy for your business?
To avoid disruption in your insurance coverage in the event of a possible Canada Post strike, we ask that you pay your premium using online banking or contact your broker about alternate payment methods.
For inquiries about any in-progress claims, please contact the adjuster handling your claim.