Canned Fruit And Vegetable Manufacturers Insurance Policy Information
Canned Fruit And Vegetable Manufacturers Insurance. Fruit and vegetable Canneries receive raw goods from farms, orchards, or food brokers. Processing may include removing waste materials from the raw goods, cutting, blanching or cooking, packaging, sealing, and distributing finished goods to customers.
Due to the variety of products that fall into this classification, processes and operations may also include blending or deep-fat frying.
Finished goods may include canned fruit, vegetables, jellies, soups, and prepared meals. The finished products may be packaged in metal, glass, paper, or plastic containers.
The cannery must follow all Food and Drug Administration regulations to determine the length of time each product is cooked or blanched to kill bacteria and disease that could be transmitted to consumers.
As a canned fruit and vegetable manufacturer, you provide an invaluable service. You are tasked with purchasing fruits and vegetables from either wholesale suppliers or farmers and packaging them to increase their shelf life. The goods you produce are used by general consumers and businesses and serve as a vital source of nutrition.
Purchasing the fruits and vegetables from your suppliers, processing them and packaging them, and distributing the final product requires a great deal of time and money. Additionally, you need to ensure that the products you offer adhere to the stringent standards that are set forth by the Food and Drug Administration (FDA) or the United States Department of Agriculture (USDA).
You also rely on a huge team to keep your business operational. Needless to say, as a canned fruit and vegetable manufacturer, you face a great deal of risks. What's the best way to protect your business from these risks? By investing in the right type of canned fruit and vegetable manufacturers insurance.
Canned fruit and vegetable manufacturers insurance protects your food manufacturing business 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 canned fruit and vegetable manufacturers insurance questions:
- What Is Canned Fruit And Vegetable Manufacturers Insurance?
- How Much Does Canned Fruit And Vegetable Manufacturers Insurance Cost?
- Why Do Canned Fruit And Vegetable Manufacturers Need Insurance?
- What Type Of Insurance Do Canned Fruit And Vegetable Manufacturers Need?
- What Does Canned Fruit And Vegetable Manufacturers Insurance Cover & Pay For?
What Is Canned Fruit And Vegetable Manufacturers Insurance?
Canned fruit and vegetable manufacturers insurance is a type of insurance coverage designed for companies that produce canned fruits and vegetables.
It provides protection for the business against financial losses due to unexpected events such as damage or loss of property, liability claims, and other potential risks that can arise during the production process. The coverage can include property damage, product liability, business interruption, and liability coverage.
The insurance policy is customized to the specific needs of the canned fruit and vegetable manufacturer, ensuring that the business is fully protected against any potential risks.
How Much Does Canned Fruit And Vegetable Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small canned fruit and vegetable manufacturing businesses ranges from $57 to $109 per month based on location, size, payroll, sales and experience.
Why Do Canned Fruit And Vegetable Manufacturers Need Insurance?
While you make every effort to make sure your operation is running smoothly and the products you deliver are safe for human consumption, there's always a chance that something could go wrong. A consumer could claim that one of the products you distributed caused food poisoning.
A piece of machinery could malfunction and injury an employee. A vendor could slip and fall while making a delivery. A fire could break out in your manufacturing facility.
These are just some of the examples of things that could go wrong. As the owner and operator of your canned fruit and vegetable manufacturing facility, you are responsible for anything that goes awry. Legal defense fees, damages, medical bills, repairs; all of these things can cost an exorbitant amount of money.
Having the right type of insurance can help to protect you from having to pay for these expenses out of your own pocket.
Ultimately, canned fruit and vegetable manufacturers insurance can help you avoid financial ruin and prevent you from potentially losing your business.
What Type Of Insurance Do Canned Fruit And Vegetable Manufacturers Need?
The specific type of canned fruit and vegetable manufacturers insurance needed varies and depends on a variety of factors. The location of your manufacturing facility, the amount of people you employ, and the size of your operation are just some of the factors that will impact what type of insurance you'll need.
However, there are certain policies that all canned fruit and vegetable manufacturers will need to have, including:
- Commercial General Liability - This type of insurance protects you from third-party personal injury and property damage claims. For example, if someone files a lawsuit against you, claiming that your products caused food poisoning, commercial general liability coverage (with product liability) would help to pay for any associated legal defense fees, as well as damages that you may be required to pay.
- Commercial Property - You'll also need to carry commercial property insurance, which protects your commercial building and the contents within it, from certain perils, such as fires, burst water pipes, vandalism, and theft. For instance, if fire were to break out in your plant, commercial property insurance would help to pay for the cost of any necessary repairs. It would also help to cover any new equipment or machinery that you might need to purchase.
- Workers Compensation - As an employer, you are legally responsible for providing your employees with a safe place to work. If any workplace injuries or illnesses occur, you are liable for the medical expenses, and would also have to cover the cost of wages that an employee might lose while recovering. Workers' comp insurance covers these expenses in the event that an employee does sustain a work-related injury or develops an illness as a result of work conditions.
- Business Auto - If you rely on vehicles to transport the canned fruit and vegetables you produce, you'll also need to carry commercial auto insurance. In the event that an accident occurs with one of your work vehicles, this coverage will pay for any damages.
These are just a few of the examples of the canned fruit and vegetable manufacturers insurance coverage you will need to invest in.
Canned Fruits And Vegetables Manufacturing Risks & Exposures
Premises liability exposure is moderate as drivers of pickup and delivery vehicles, repairmen, and inspectors regularly visit the premises. There must be clear markings as to where trucks may go, and their movements must be controlled to keep the area safe and secure. If tours are given or retail operations are conducted on premises, all life safety codes must be met to assure visitor safety. Good housekeeping is critical due to the potential for 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.
Products exposures are high due to the possibility of contamination, spoilage and foreign objects in canned goods. Raw milk and meat products should be tested before processing. Botulism can occur within the can itself or can result from problems in processing or sealing. Cans should be inspected prior to filling. 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 laboratory is recommended to verify quality control. Controls must be in place to prevent contamination from exposure to chemicals such as insecticides and pesticides used to contain insect or rodent infestations. Stock dating and rotation are important factors. An effective recall program must be in place for quick activation.
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 taken from the site 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 usually means that a UST policy must be purchased.
Workers compensation exposures are high due to burns caused by the cooking and processing machinery and equipment, back or hernia injuries due to lifting, foreign objects in the eyes, and cuts from cans. Employees may be exposed to chemicals, fungi, or excessive noise. Guards must be in place on machinery and employees should be provided with adequate safety equipment. Forklifts should be equipped with backup alarms and refueled in well-ventilated areas. Slips and falls can result if the floors and premises are not kept clean.
Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers. Controls must be in place to maintain, check, and prevent such injury. The seasonality of operations may require additional training and supervision of workers as turnover may be high. Drivers may be injured in vehicle accidents or from slips and falls and lifting injuries at customers' premises.
Property exposures are significant. Ignition sources include the cooking, refrigeration and automated conveyance and processing machinery, electrical wiring, and heating and air conditioning systems. All machinery and equipment must be inspected and maintained regularly to avoid wear and tear or overheating losses. 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. A small fire or power outage of even moderate duration could result in a total 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.
Raw materials and final products should be stored away from the processing operations. Spoilage losses can be severe if the refrigeration and cooling equipment malfunctions or loses power. Controls, such as alarms, must be in place to warn if power is out or if the temperature rises in coolers and freezers. Emergency backup systems, such as generators, should provide power if an outage or shutdown occurs. 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. All machinery and equipment must be regularly inspected and maintained. If there are boilers, operational safety valves must be in place.
Crime exposure is 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 cannery bills customers, computers (which may include computer-run processing equipment), goods in transit, and valuable papers and records. Overturn or collision may result in a total loss with no salvage due to the potential for contamination. Trucks must be well maintained and inspected regularly. Valuable papers and records include proprietary recipes, inventory records, customer files, quality control records, and contracts with suppliers and distributors.
Commercial auto exposures can be significant if the cannery picks up raw materials from farms or distributors or delivers finished goods to customers. All drivers must have a commercial license and acceptable MVRs. Vehicles must be regularly maintained with records kept in a central location. For long-haul deliveries, drivers may not exceed DOT standards for the number of hours worked per day and per week.
Canned Fruit And Vegetable Manufacturers Insurance - The Bottom Line
To find out more about the specifics of insurance coverage, including the amount of coverage you should carry and any other additional policies you should invest in, speak with a reputable agent that has experience in manufacturing insurance. By investing in the right type of canned fruit and vegetable manufacturers insurance for your business, you will have peace of mind knowing you are properly covered.
What Does Canned Fruit And Vegetable Manufacturers Insurance Cover & Pay For?
Canned fruit and vegetable manufacturers could be sued for several reasons, which include but are not limited to:
Product Liability Issues: If a consumer becomes ill or injured as a result of consuming a company's canned product, they may sue for damages. For example, if there is a case of food poisoning, or if a foreign object is found in the canned product, this could lead to a lawsuit.
Insurance Solution: Product Liability Insurance can protect manufacturers from these types of claims. This insurance covers the cost of compensating anyone who is injured by a faulty product that your business designs, manufactures or supplies. It also covers the legal fees associated with these types of claims.
Labelling and Advertising Misrepresentation: If a manufacturer makes false or misleading claims about a product on its label or in advertising, they could be sued. For example, if a product is marketed as "organic" but is found to contain non-organic ingredients, this could lead to a lawsuit.
Insurance Solution: Advertising Injury Coverage, which is often part of a General Liability Insurance policy, can cover legal fees, settlements, and judgments related to claims of misrepresentation, false advertising, and similar allegations.
Worker Injurie: If an employee gets injured on the job, they might sue the company. This could occur, for example, if a worker is injured by machinery used in the canning process.
Insurance Solution: Workers' Compensation Insurance provides wage replacement and medical benefits to employees injured in the course of employment. In exchange for these benefits, the employee gives up their right to sue their employer for the tort of negligence. This type of insurance is mandatory in many places.
Property Damage: If a fire, natural disaster, or other event damages the manufacturing facility, the manufacturer may face costs not only to repair the damage but also for business interruption.
Insurance Solution: Commercial Property Insurance can cover the cost of physical loss or damage to the insured's property from covered perils. Business Interruption Insurance, which is usually part of a property insurance or a packaged business owner's policy, can cover loss of income and operating expenses during the period of restoration.
Supply Chain Disruptions: If a key supplier fails to deliver goods, which in turn forces the manufacturer to stop production, the manufacturer might face lawsuits from clients or partners for not fulfilling their contracts.
Insurance Solution: Supply Chain Insurance, also known as Contingent Business Interruption Insurance, can protect against losses incurred due to disruptions in the supply chain. This coverage would help mitigate the financial impact, and it could potentially cover costs associated with lawsuits that result from supply chain disruptions.
Environmental Issues: If the manufacturing process results in pollution that affects local ecosystems, the manufacturer could be sued for environmental damage.
Insurance Solution: Environmental Liability Insurance, or Pollution Liability Insurance, provides coverage to the insured in the event of bodily injury, property damage, and cleanup costs as a result of pollution conditions.
In all these cases, the specific coverage and claim handling would depend on the terms and conditions of each policy. It's crucial for businesses to thoroughly understand their policies and to work with professional insurance brokers or agents to ensure they have the appropriate coverage for their needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2035 Pickled Fruits and Vegetables, Vegetable Sauces and Seasonings, and Salad Dressings
- NAICS CODE: 311421 Fruit and Vegetable Canning, 311422 Specialty Canning
- Suggested Workers Compensation Code(s): 2111 Cannery NOC
Description for 2035: Pickled Fruits and Vegetables, Vegetable Sauces and Seasonings, and Salad Dressings
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 203: Canned, Frozen, And Preserved Fruits, Vegetables, and Food Specialties
2035 Pickled Fruits and Vegetables, Vegetable Sauces and Seasonings, and Salad Dressings: Establishments primarily engaged in pickling and brining fruits and vegetables, and in manufacturing salad dressings, vegetable relishes, sauces, and seasonings. Establishments primarily engaged in manufacturing catsup and similar tomato sauces are classified in Industry 2033, and those packing purchased pickles and olives are classified in Wholesale or Retail Trade.
- Blue cheese dressing
- Brining of fruits and vegetables
- Cherries, brined
- French dressing
- Fruits, pickled and brined
- Horse radish, prepared
- Mustard, prepared (wet)
- Olives, brined: bulk
- Onions, pickled
- Pickles and pickle salting
- Relishes, fruit and vegetable
- Russian dressing
- Salad dressings, except dry mixes
- Sandwich spreads, salad dressing base
- Sauces, meat (seasoning): except tomato and dry
- Sauces, seafood: except tomato and dry
- Sauerkraut, bulk
- Seasonings (prepared sauces), vegetable: except tomato and dry
- Soy sauce
- Thousand Island dressing
- Vegetable sauces, except tomato
- Vegetables, pickled and brined
- Vinegar pickles and relishes
- Worcestershire sauce
Canned Fruit And Vegetable Manufacturers Insurance - The Bottom Line
To find out exactly what type of canned fruit and vegetable manufacturers insurance you need and how much coverage you should have, speak to an experienced broker to go over all your coverage options.
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.
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The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
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.