Bottling Plant Insurance

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Bottling Plant Insurance Policy Information

Bottling Plant Insurance

Bottling Plant Insurance. and alcoholic beverages, into bottles so that these products can subsequently be distributed. Industrial-scale bottling machines with massive outputs are employed for this purpose.

While that might sound simple to laypeople, bottling is, in fact, a rather delicate and complex process. Bottling companies have to take steps to ensure completely sanitary conditions as well as working to keep pollution to a minimum, for instance.

Bottling plants produce nonalcoholic drinks (such as soft drinks, juices, or water) and drink concentrates. Water quality is critical as it affects the taste of the final product. Water is filtered, sterilized, and dechlorinated before being mixed with sugars and flavorings. Carbon dioxide is added to carbonated drinks.

The drinks are bottled (using glass, plastic, aluminum, steel, or treated paper), labeled, and stored or distributed to retailers, concessionaires, and vending machines.

The bottler may hold a franchise to manufacture and distribute a particular brand of soft drink or be a captive bottler owned by the concentrate maker or a parent company. Operations may include a number of warehouses for storage of finished goods.

Bottling plants play a crucial role in the global sale of diverse types of drinks and can be extremely successful, but they also face numerous hazards - not all of which can successfully be avoided.

That is why it is so crucial for bottling companies to arm themselves with a comprehensive bottling plant insurance plan that offers an efficient buffer against devastating financial blows. What types of insurance are needed, though, and why? Find out more in this brief guide.

Bottling plant insurance protects your facility from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked broom and brush manufacturing insurance questions:


How Much Does Bottling Plant Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small broom and brush manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Bottling Plants Need Insurance?

Insurance For Manufacturers

Bottling plants will go to great lengths to ensure that their activities unfold smoothly and safely. Despite that, they face, just like any other business, a range of threats that could lead to such overwhelming expenses that the bottling plant would not be able to cover the costs on their own.

A bottling plant could fall victim to an act of nature, such as a hurricane, hailstorm, or earthquake, leading to extensive damage as well as costly business interruptions. Criminal acts like theft or vandalism could impact the facility, or a malfunction may lead essential equipment - without which the bottling process cannot continue - to break down.

Employees may sustain occupational injuries, and third parties who enter your facility, such as clients, contractors, or vendors, may be hurt. Bottling plants can face lawsuits for any number of reasons, from allegations of environmental pollution to damaging the quality of the beverages they bottle.

The simple fact is that not mishaps, accidents, and disasters can be prevented, no matter how competent the management team. That is why it is so essential to carry the right bottling plant insurance, alongside which the costs that accompany major perils will be greatly reduced, allowing the bottling company to continue to thrive.


What Type Of Insurance Do Bottling Plants Need?

Because each business is unique, there is no simple answer to this question. The types of insurance coverage a bottling plant will need to carry depend on factors like the jurisdiction within which the facility is based, the number of workers the plant employs, and the value of their equipment.

For this reason, it is vital to talk to a commercial insurance broker who is familiar with your branch of industry. Together, you can craft the insurance plan that will best protect your business.

With that in mind, some of the types of bottling plant insurance that are indispensable include:

  • Commercial Property: This essential type of insurance safeguards your bottling plant from financial losses caused by property damage. Should covered acts of nature, theft, vandalism, or accidents damage or destroy either your facility or the smaller assets within, these policies will pay for a substantial portion of the total costs.
  • Commercial General Liability: This broad kind of bottling plant insurance covers claims of bodily injury or property damage made against your company by third parties, in case those events took place on your property or as a direct result of your actions. It helps pay for attorney fees, medical and repair costs, and other legal expenses.
  • Product Liability: Bottling manufacturers will be responsible for the safety of their bottles even once they are on the market, housing a product manufactured by a different company. Should one of your bottles cause injury to a third party, for reasons you could be liable for, product liability insurance covers the resulting legal costs.
  • Workers Compensation: In the event that an employee sustains a workplace injury or illness, workers' comp is vital in covering their medical bills as well as any income they may lose as they recover.

While these kinds of insurance will be invaluable for bottling plants, it is important to keep in mind that they will not fully meet your insurance needs. Bottling plants may additionally require commercial auto insurance, equipment breakdown insurance, and inland marine insurance, to name just a few.

For further information, and to craft the bottling plant insurance plan that will optimally protect your business, partner with an experienced commercial insurance broker.


Bottling Plant's Risks & Exposures

Manufacturing

Premises liability exposure is light if visitor access is limited. Should tours be held, the bottler should meet all life safety codes to assure visitor safety, especially from exploding containers. Good housekeeping and nonslip flooring finishes are critical to minimizing slips and falls. Spills of liquids should be promptly cleaned up and warning signs posted.

Exits should be clearly marked and free of obstacles. Adequate interior and exterior lighting should be available in the event of a power outage. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level. The off-premises exposure is high if delivery drivers stock shelves for customers, deliver canisters of compressed carbon dioxide, or install vending machines.

Vending machines should be grounded to prevent shocks and secured to prevent tipping. Canisters should be inspected prior to delivery and be equipped with safety collars to prevent valves from being broken off. Contractual liability may be a concern if there is a sidetrack agreement.

Products exposures are moderate due to the possibility of contamination, spoilage, foreign objects in containers, or explosion from a pressurized canister. Incoming raw materials should be inspected before accepted. Some may be imported from foreign countries.

The workplace must meet all FDA specifications for sanitary working conditions and be arranged to prevent foreign substances from entering the processing area. An on-site testing laboratory is recommended to verify quality control.

Pest control and the chemical applications used are key processes to evaluate. Stock dating and rotation are important factors. An effective recall program must be in place that can be activated immediately.

Environmental impairment exposure is from underground fuel storage, leakage of refrigerants such as ammonia and chlorofluorocarbons, and waste disposal. Storage and waste disposal must comply with all federal and state requirements. Waste should be removed from the plant on a regular basis by outside contractors. If wastewater is discharged into public waterways, a permit must be obtained from the EPA. The presence of underground storage tanks may require a UST policy.

Workers compensation exposure can result from burns caused by the machinery and equipment, cuts or accidental dismemberment from rotating blades or moving parts on machinery, back injuries or hernias from lifting, foreign objects in the eye, and slips and falls from inadequate housekeeping in processing areas.

All machinery must be properly guarded. Employees may be exposed to chemicals or excessive noise. Adequate safety equipment should be required for employees in processing areas. Forklifts should be equipped with backup alarms and be refueled in well-ventilated areas. As with products liability exposure, there is a potential injury to workers from exploding pressurized containers.

Employees delivering goods to customers can be injured in vehicle accidents, robberies, or while servicing vending machines.

Property exposures are high. Ignition sources include electrical wiring, heating and air conditioning systems, production equipment and machinery, and the fuel sources for the equipment. All machinery and equipment must be inspected and maintained regularly to avoid wear and tear or losses from overheating. Wiring must be up to date and of sufficient capacity.

All machinery should be grounded to prevent static buildup and discharge. Due to its combustibility, an ammonia detection system should be in place if ammonia is used as a refrigerant. With any food product, even a small fire can result in a large loss as state, local or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, heat or water.

Because carbon dioxide is under pressure, it must be stored away from heat to prevent explosions. Vending machines may invite vandalism. The business income exposure can be very high as some production equipment may be difficult to repair or replace quickly.

Equipment breakdown exposure is high due to the automated machinery and equipment which can malfunction or break down. All machinery and equipment must be regularly inspected and maintained as a lengthy breakdown could result in a severe loss, both direct and under time element. If there are boilers, operational safety valves must be in place.

Crime exposure is from employee dishonesty of both inventory and money. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that there are checks and balances. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.

Regular audits by an outside firm should be conducted. Loading docks should be supervised to minimize employee theft of finished goods. If drivers pick up checks or accept money, there is both an employee dishonesty and theft of money and securities concern. Receipts should be issued for any cash payments received.

Inland marine exposure comes from accounts receivable if the bottler bills customers, computers (which may include computer-run production equipment), contractors' equipment for forklifts, goods in transit, and valuable papers and records. Overturn or collision of company-owned vehicles transporting finished stock could result in a total loss due to the fragility of glass bottles and the possibility of contamination.

All loads must be secured to prevent shifting during transport. Valuable papers and records include proprietary formulas, inventory records, customer files, and contracts with suppliers and distributors.

Commercial auto exposures are usually high as delivery is an ongoing part of the operation. Deliveries may be made in darkness, during inclement weather, or on narrow roads or streets where there is little margin for error. Drivers should be assigned to routes to increase their familiarity with traffic patterns.

Because many deliveries are made to grocery stores and schools, drivers must be trained to be aware of the presence of children around and behind the vehicles.

Drivers must have a commercial license and acceptable MVR. For long-haul deliveries, drivers may not exceed DOT standards for the number of hours worked per day and per week. If canisters of carbon dioxide are transported, they must be secured in the cargo area to prevent asphyxiating the driver if there is leakage. All vehicles must be well maintained with records kept in a central location.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 2086 Bottled And Canned Soft Drinks And Carbonated Waters
  • NAICS CODE: 311930 Flavoring Syrup and Concentrate Manufacturing, 312111 Soft Drink Manufacturing, 312112 Bottled Water Manufacturing
  • Suggested ISO General Liability Code(s): 51355, 51356, 51357, 51358, 51359, 59926, 59927
  • Suggested Workers Compensation Code(s): 2157

Description for 2086: Bottled And Canned Soft Drinks And Carbonated Waters

Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 208: Beverages

2086: Bottled And Canned Soft Drinks And Carbonated Waters: Establishments primarily engaged in manufacturing soft drinks and carbonated waters. Establishments primarily engaged in manufacturing fruit and vegetable juices are classified in Industry Group 203; those manufacturing fruit syrups for flavoring are classified in Industry 2087; and those manufacturing nonalcoholic cider are classified in Industry 2099. Establishments primarily engaged in bottling natural spring waters are classified in Wholesale Trade, Industry 5149.

  • Beer, birch and root: bottled or canned
  • Carbonated beverages, nonalcoholic: bottled or canned
  • Drinks, fruit: bottled, canned, or fresh
  • Ginger ale, bottled or canned
  • Iced tea, bottled or canned
  • Lemonade: bottled, canned, or fresh
  • Mineral water, carbonated: bottled or canned
  • Soft drinks, bottled or canned
  • Tea, iced: bottled or canned
  • Water, pasteurized: bottled or canned

Bottling Plant Insurance - The Bottom Line

Not all bottling plant insurance policies are the same. You can discover if your operation has the best fit insurance policies by talking to an experienced commercial insurance agent.

Often they are able to save you on premiums and offer you better policy options than you currently have.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Manufacturing Insurance

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.


Manufacturing Insurance

For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.

Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.

The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.

Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.

In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.

What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.

Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.

Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.

The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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