Feed And Grain Manufacturers Insurance Policy Information
Feed And Grain Manufacturers Insurance. Feed and grain manufacturers process the food used to sustain livestock such as cattle, sheep, goats, pigs, yaks, and poultry.
Feed and grain manufacturers produce food primarily for farm livestock, but which may also be used for zoo and game animals. The finished product consists predominantly of grains and fodder (grasses and similar plants) with minerals and vitamins added as nutrients. Some contain additional additives for medicinal purposes.
Fodder may be dried or fermented (silage), shredded or milled, combined with additives, and then formed into the end product. Feeds are carefully monitored by the Food and Drug Administration (FDA) because of the impact that feed has on human beings who consume animal products.
Contamination of milk cows is a particular concern due to consumption by babies and children.
The feed mill may produce ingredients and sell them separately to customers who mix their own combination of feed and nutrients based on market prices and their animals' needs.
While each animal has its own specific dietary needs, this industry will typically use raw ingredients such as oats, corn, soy, wheat, and barley, often enriching the feed with crucial minerals and vitamins that will help livestock to thrive.
This livestock feed has to meet stringent regulations set by health and safety authorities, and besides its manufacture, companies that produce livestock feed and grain need to ensure that their ingredients meet quality standards and are free of disease and pathogens.
Just as a farmer's work is never done, the work of companies making livestock feed is not either. Feed and grain manufacturers do, however, face a wide range of potentially devastating risks, against which it is important to be properly insured.
What kinds of feed and grain manufacturers are required? Discover more below.
Feed and grain 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 feed and grain manufacturing insurance questions:
- How Much Does Feed And Grain Manufacturers Insurance Cost?
- Why Do Feed And Grain Manufacturers Need Insurance?
- What Type Of Insurance Do Feed And Grain Manufacturers Need?
How Much Does Feed And Grain Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small feed and grain manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Feed And Grain Manufacturers Need Insurance?
You will, as a company that makes feed and grain for livestock, do your best to run a smooth, safe, and commercially successful enterprise. Regardless of how good you are at managing your company, the reality remains that threats are always just around the corner - and often, you cannot see them coming.
Feed and grain manufacturers have to confront the possibility of common, "garden-variety", risks that can befall absolutely any business as well as some hazards unique to their own field. Acts of nature like floods, wildfires, and hurricanes could damage or destroy your manufacturing facility at short notice.
Equipment used to process animal feed can break down, requiring repair or replacement. Theft and vandalism are examples of risks that absolutely any business can face, as well.
Should a batch of feed or grain fail to meet required standards, you may also face a costly recall. Workers may sustain injuries on the job, for which a company can subsequently be held liable, or the dust they breathe in during the processing of feed may inflict respiratory conditions.
Third parties and their property can be harmed by your activities or on your premises, as well.
These are not the only risks a feed and grain manufacturer has to think about, but these examples do illustrate the essential nature of a top-notch insurance plan. With the right feed and grain manufacturers insurance, after all, these unforeseen circumstances do not have to be catastrophic.
What Type Of Insurance Do Feed And Grain Manufacturers Need?
While only an in-depth consultation with a competent and experienced commercial insurance broker will help a feed and grain manufacturing firms find out what their exact insurance needs are, we can tell you here what kinds of insurance you should have.
Among the types of feed and grain manufacturers insurance a company will want to have on their radar are:
- Commercial Property: This type of insurance guards your company from catastrophic financial losses resulting from acts of nature or other accidents, though the types of events covered will vary. It covers physical assets, meaning your building, equipment, raw materials waiting for processing, and finished feed awaiting transport, in the event that they are destroyed or damaged.
- Commercial General Liability: The broadest type of feed and grain manufacturers insurance, this kind covers liability claims following third party property damage or bodily injury. Imagine, for example, that an independent contractor servicing manufacturing equipment suffers an injury on your premises. Should they then file a lawsuit, your legal expenses and settlement costs, if the suit is successful, are covered.
- Product Liability: This kind of liability insurance pertains directly to your products. Depending on the policy, revenue lost due to product recall can be covered, as well as claims that your feed made a livestock population sick.
- Workers Compensation: In all fields of industry, workers can have accidents on the job, or suffer occupational illnesses, from those resulting from dust exposure to repetitive stress injury caused by less than ergonomic working conditions. Workers comp covers injured workers' lost wages and medical bills alike, in addition to protecting you from litigation.
Remember that the kinds of insurance best suited to meet your needs depend on numerous factors, such as output quantities, the number of workers you employ, the raw ingredients you use in manufacture, and the equipment you use.
The ultimate cost of your feed and grain manufacturers insurance is likewise determined by these variables. A commercial insurance agent is your best guide.
Feed And Grain Manufacturing's Risks & Exposures
Premises liability exposure is high because of the explosion potential of some ingredients, particularly grains. Visitors on tours or independent contract farmers delivering raw materials to the plant may be injured by slips, trips, or falls, or may be exposed to toxic or caustic chemicals.
Toxins released in a fire or fumes, spills or leaks from chemical tanks may cause serious injury or property damage to neighboring properties.
If there is a railroad sidetrack or dock, an employee must verify that no one is in the path of an incoming or outgoing train. Railroad tracks, large storage bins, and conveyors can be attractive nuisances. The premises should be enclosed by fencing with "No Trespassing" signs posted.
Product liability exposure is extremely high as the ingestion of contaminated feed may be passed on to humans who consume the affected animal's meat or meat byproducts. Contamination, whether by pests, bacteria, or chemicals, may have a catastrophic effect on an entire livestock population.
Quality control at all phases of the operation from initial receipt of raw materials to packaging is critical. Significant injuries or damage may follow from improper mixing of ingredients, improper storage, during transport or even inappropriate packaging and labeling.
Environmental impairment exposure is moderate. Waste from processing may develop bacterial contaminants that could affect air, surface or ground water, or soil. Processes may cause thermal or noise pollution. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures can be moderate. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, hearing loss from machinery noise, and back injuries from lifting. Chemicals and dust can irritate eyes and lungs, and result in respiratory illness.
Repetitive motion injuries can result from the ongoing use of machinery. Workers may fall into the silos and storage bins and suffocate. Employees should be provided with safety training, protective equipment, and machine guards.
Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can be aware of warning symptoms and obtain treatment as early as possible. Drivers of forklifts and vehicles may be injured in accidents.
Property exposure consists of an office, plant or mill, and warehousing for raw materials and finished goods. There may be large storage bins or conveyor systems to transport and feed ingredients into processing equipment.
Ignition sources include electrical wiring, heating and cooling equipment, and production machinery, which may overheat or exceed the capabilities of electrical wiring.
Flammable lubricants and cleaning agents should be stored away from combustibles. An explosion potential may arise when grain dust generated during handling, and especially milling, is ignited by sparks from conveyor systems, or when stored grain becomes wet.
This hazard increases in the absence of well maintained dust collection systems. Raw ingredients and finished feed are susceptible to damage by fire, moisture, pests, and smoke.
Equipment breakdown exposures include breakdown losses to the processing systems, electrical control panels, refrigeration equipment used to store meat and by-products, and other apparatus. Breakdown and loss of use of the production machinery could result in a significant loss, both direct and indirect, particularly, time element.
Crime exposures are chiefly from employee dishonesty and theft of money and securities. Employees may act alone or in collusion with outsiders in stealing money, trade secrets, or finished stock. Background checks should be conducted on all employees.
There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information as well as testing, quality control, and proprietary formulas.
Goods in transit may be damaged by fire, theft, collision and overturn, spillage, or contamination.
Business auto exposure may be high if the manufacturer transports raw materials or finished products. Deliveries often involve travel in rural areas with poor road quality and uneven ground at customers' farms. Manufacturers generally have private passenger fleets used by sales representatives.
There should be written procedures regarding the private use of these vehicles by others. Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2048 Prepared Feed And Feed Ingredients For Animals And Fowls, Except Dogs And Cats
- Suggested ISO General Liability Code(s): 53001
- Suggested Workers Compensation Code(s): 2014
Description for 2048: Prepared Feed And Feed Ingredients For Animals And Fowls, Except Dogs And Cats
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 204: Grain Mill Products
2048 Prepared Feed And Feed Ingredients For Animals And Fowls, Except Dogs And Cats: Establishments primarily engaged in manufacturing prepared feeds and feed ingredients and adjuncts for animals and fowls, except dogs and cats. Included in this industry are poultry and livestock feed and feed ingredients, such as alfalfa meal, feed supplements, and feed concentrates and feed premixes. Also included are establishments primarily engaged in slaughtering animals for animal feed. Establishments primarily engaged in slaughtering animals for human consumption are classified in Industry Group 201. Establishments primarily engaged in manufacturing dog and cat foods are classified in Industry 2047.
- Alfalfa, cubed
- Alfalfa, prepared as feed for animals
- Animal feeds, prepared: except dog and cat
- Bird food, prepared
- Buttermilk emulsion for animal food
- Chicken feeds, prepared
- Citrus seed meal
- Earthworm food and bedding
- Feed concentrates
- Feed premixes
- Feed supplements
- Feeds, prepared (including mineral): for animals and fowls-except
- Feeds, specialty: mice, guinea pigs, minks, etc.
- Fish food
- Hay, cubed
- Horsemeat, except for human consumption
- Kelp meal and pellets
- Livestock feeds, supplements, and concentrates
- Meal, bone: prepared as feed for animals and fowls
- Mineral feed supplements
- Oats: crimped, pulverized, and rolled: except breakfast food
- Oyster shells, ground: used as feed for animals and fowls
- Pet food, except dog and cat: canned, frozen, and dry
- Poultry feeds, supplements, and concentrates
- Shell crushing for feed
- Slaughtering of animals, except for human consumption
- Stock feeds, dry
Feed And Grain Manufacturers Insurance - The Bottom Line
Not all feed and grain manufacturers insurance policies offer the sane coverages and exclusions. You can see if your 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.
- Audio & Video Equipment
- Auto Parts
- 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
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- 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
- 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
- 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.