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:
- What Is Feed And Grain Manufacturers Insurance?
- 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?
- What Does Feed And Grain Manufacturers Insurance Cover & Pay For?
What Is Feed And Grain Manufacturers Insurance?
Feed and grain manufacturers insurance is a type of insurance coverage designed specifically for businesses that manufacture and distribute feed and grain products. This insurance protects the company against financial losses resulting from various risks such as liability, property damage, theft, and product recalls.
This insurance coverage can also include protection for product contamination, transportation, and liability issues. The coverage can also be tailored to meet the specific needs and requirements of each individual business in the feed and grain industry.
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.
What Does Feed And Grain Manufacturers Insurance Cover & Pay For?
Feed and Grain Equipment Manufacturers, like any other business, can face a variety of lawsuits. Here are some common reasons they might be sued and how insurance can help cover the costs:
1. Product Liability: If equipment malfunctions or fails, causing injury or damage, customers could sue the manufacturer for product liability. For example, if a conveyor system were to malfunction, causing grain spillage and subsequent financial loss, the aggrieved party might sue the manufacturer.
Insurance Solution: Product Liability Insurance can help here. This insurance is specifically designed to protect businesses against claims related to the manufacture or sale of products, food, medicines, or other goods to the public. It covers the manufacturer's or seller's liability for losses or injuries to a buyer, user, or bystander caused by a defect or malfunction of the product, and, in some instances, a defective design or a failure to warn.
2. Workplace Accidents: Employees at a manufacturing plant could get injured while operating heavy machinery, leading to a lawsuit against the company for unsafe work conditions or negligence.
Insurance Solution: Workers' Compensation Insurance is a mandatory type of insurance carried by many businesses. It covers medical costs and a portion of lost wages for an employee who gets injured or sick on the job. Additionally, it usually includes employer's liability insurance, which can protect the company from lawsuits related to the injury.
3. Intellectual Property Disputes: A competing company could allege patent infringement, claiming that the feed and grain equipment being manufactured is too similar to their patented designs.
Insurance Solution: Intellectual Property Insurance can provide coverage in these situations. This type of insurance can help cover legal fees and any damages awarded if the manufacturer is found guilty of intellectual property infringement.
4. Environmental Damage: Manufacturing plants could accidentally cause environmental damage, such as polluting local waterways with industrial waste. This could lead to lawsuits from affected parties or fines from regulatory bodies.
Insurance Solution: Environmental or Pollution Liability Insurance can help cover costs associated with clean-up, legal fees, and damages related to pollution caused by the manufacturer's operations.
5. Breach of Contract: The manufacturer could be sued for failing to deliver equipment on time, not meeting the agreed-upon specifications, or not fulfilling any other terms of a contract with a client.
Insurance Solution: Professional Liability Insurance (also known as Errors & Omissions Insurance) can provide coverage in these scenarios. It can cover the legal costs of defending against such lawsuits and any damages awarded.
In conclusion, while lawsuits can pose significant risks to Feed and Grain Equipment Manufacturers, a variety of insurance products are available to help mitigate these risks, protect the financial health of the company, and provide peace of mind for business owners.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2048 Prepared Feed And Feed Ingredients For Animals And Fowls, Except Dogs And Cats
- Suggested Workers Compensation Code(s): 2014 Grain or Feed Milling
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.
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.