Coffee Manufacturers Insurance Policy Information
Coffee Manufacturers Insurance. Coffee manufacturers are responsible for the sourcing, processing, roasting, and distributing of diverse types of coffee.
They may range from small, private label, coffee companies that meet the demand of specialty coffees for niche markets to industry giants any consumer would recognize every time they visit the grocery store.
Coffee manufacturers receive coffee beans ("cherries") from suppliers, either domestic or foreign. Processing may include removing waste materials from the beans, sorting, cleaning, drying, grading, roasting, grinding, mixing, and packaging.
Decaffeinating requires caffeine to be extracted using a chemical process before the beans can be roasted. Instant coffee is produced by brewing the coffee after the grinding stage, then converting it into a dry powder.
Regardless of the size of a coffee manufacturer, it is beyond question that coffee companies play a very real part in keeping the world turning - and helping everyone wake up with the planet's favorite caffeinated beverage.
If you own and manage a coffee company, or are considering starting one, you know that there will always be demand for your product. At the same time, the fact that coffee manufacturers also face a myriad of challenges is undeniable.
Unforeseen circumstances could change your financial outlook in the blink of an eye, and that is why it is vital to evaluate your insurance needs. What types of coffee manufacturers insurance coverage might be required? Find out more in this brief guide.
Coffee manufacturers insurance protects your 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 coffee manufacturing insurance questions:
- How Much Does Coffee Manufacturers Insurance Cost?
- Why Do Coffee Manufacturers Need Insurance?
- What Type Of Insurance Do Coffee Manufacturers Need?
How Much Does Coffee Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small coffee manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Coffee Manufacturers Need Insurance?
From the smallest startup to the large household names, all coffee manufacturers need to carry the right insurance for the simple reason that they face a variety of risks, each of which with the potential to cause serious financial burdens.
Coffee manufacturers have to contend with the same threats that will be familiar to any business, regardless of its nature, alongside some industry-specific hazards.
Your facility may suffer extensive damage in a natural disaster, such as an earthquake or hurricane, saddling you with heavy costs while simultaneously forcing you to halt production - or an act of nature that affects your coffee bean suppliers may have a similar indirect effect, leaving you with a shortage. Theft or vandalism could lead to significant losses, equipment essential to your roasting process could malfunction, or your coffee beans may be lost to mold.
Liability represents another major risk category, and in this case, a coffee manufacturer could be sued by an employee or a third party who is injured on the premises, by a consumer who claims your product caused them harm, or even face copyright claims pertaining to your packaging or advertising materials.
The list of potential perils is almost endless - but by investing in a comprehensive coffee manufacturers insurance plan, businesses in this industry will know that they have done everything they can to protect their business by making sure they won't be solely responsible for covering the resulting costs.
What Type Of Insurance Do Coffee Manufacturers Need?
The exact types of coverage a coffee manufacturer should carry heavily depends on their individual risk profile. Factors that include the jurisdiction in which their facility is based, their number of employees, their shipping and storage methods, and the equipment they use in their production process, all influence a coffee manufacturer's insurance needs.
A seasoned commercial insurance broker who understands the coffee industry is best positioned to advise you. However, among the key types of coffee manufacturers insurance coverage needed are:
- Commercial Property: This type of insurance shields you from financial losses in the event that your facility and its contents, including equipment and inventory, are damaged in acts of nature, theft, or vandalism. With an additional business interruption policy, revenue you lose as a result of covered perils can also be reimbursed.
- Commercial General Liability: To protect your company from financial losses resulting from third party property damage or bodily injury claims pertaining to mishaps on your premises or as a result of your activities, it is vital to carry commercial general liability insurance. This form of coffee manufacturers insurance coverage takes care of a significant portion of your legal costs in such cases.
- Product Liability: This type of liability insurance instead covers your legal expenses, such as attorney fees and settlement costs, if a consumer files a lawsuit alleging that your product was responsible for causing them injury or damage.
- Workers Compensation: In the event that an employee suffers an occupational injury or illness under circumstances for which your coffee company could be held liable, this kind of insurance covers their lost wages, if any, as well as their medical bills, whether the injury is acute or chronic.
Because manufacturers in this industry are likely to require additional forms of coverage, such as inland marine insurance and equipment breakdown insurance, your next step should lie in consulting a commercial insurance broker who will help you craft the coffee manufacturers insurance plan your company deserves.
Coffee Manufacturing's Risks & Exposures
Premises liability exposure is moderate as drivers of delivery vehicles, repairmen, and inspectors regularly visit the facility. 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 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.
Products exposures are moderate due to the possibility of contamination. Raw materials may be imported from foreign countries. Incoming raw materials should be inspected before accepted. 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. 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. Recall procedures must be in place for immediate action if necessary.
Environmental impairment exposure is from the potential air, ground, or water pollution from chemicals used in processing, underground fuel storage, 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. Occupational disease can result from inhaling the dust generated by roasting, grinding, and packaging coffee. Chemicals used in the decaffeination process can result in eye, skin, or lung irritations.
Injuries from cuts, unguarded processing machinery, burns caused by the drying equipment, back or hernia injuries from lifting, slips and falls from inadequate housekeeping, hearing impairment from excessive noise, and foreign objects in the eyes are common.
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. Drivers may be injured in vehicle accidents or from slips and falls and lifting injuries at customers' premises.
Property exposures are high. Ignition sources include the automated conveyance and processing equipment, 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 enough capacity.
All machinery should be grounded to prevent static buildup and discharge. There should be adequate ventilation systems in place to prevent dust from dry ingredients from building up and spontaneously combusting. A small fire or power outage of even moderate duration could result in a total loss as a 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. 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 comes from employee dishonesty. Background checks should be conducted on all employees. Ordering and inventory controls should be carried out by two individuals so 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.
Inland marine exposure comes from accounts receivable if the manufacturer bills customers, computers (which may include computer-run processing equipment), goods in transit, and valuable papers and records. Finished products may be transported on company-owned vehicles. Stock in transit is susceptible to damage from water damage, collision or overturn, and theft.
Any overturn or collision could cause a total loss due to the possibility of contamination. Valuable papers and records include proprietary formulas, inventory records, customer files, quality control information, and contracts with distributors and suppliers.
Commercial auto exposures are high if finished goods are delivered to customers. Drivers must have commercial licenses and acceptable MVRs. Vehicles must be well maintained with documentation kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2095 Roasted Coffee
- NAICS CODE: 311920 Coffee and Tea Manufacturing
- Suggested ISO General Liability Code(s): 53374 Food Products Manufacturing - Dry
- Suggested Workers Compensation Code(s): 6504 Food Products Manufacturing NOC
Description for 2095: Roasted Coffee
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 209: Miscellaneous Food Preparations And Kindred
2095 Roasted Coffee: Establishments primarily engaged in roasting coffee, and in manufacturing coffee concentrates and extracts in powdered, liquid, or frozen form, including freeze-dried. Coffee roasting by wholesale grocers is classified in Wholesale Trade, Industry 5149.
- Coffee extracts
- Coffee roasting, except by wholesale grocers
- Coffee, Found: mixed with grain or chicory
- Coffee, instant and freeze-dried
Coffee Manufacturers Insurance - The Bottom Line
All coffee manufacturers insurance policies are not the same. You can seen if your manufacturing business has the best fit insurance policies by talking to an experienced commercial insurance broker.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
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.