Flavoring Extracts Manufacturers Insurance Policy Information
Flavoring Extracts Manufacturers Insurance. Flavoring extracts are essential ingredients in cooking and baking projects as well as in the manufacture of products such as candies and drinks. While flavoring extracts are based on natural ingredients, these are suspended in a liquid base, such as alcohol, to preserve the extracts and make them easy to use.
Flavoring extracts manufacturers produce pleasant tastes or odors in concentrated form from natural or chemical substances. Natural flavorings from plant oils or animal secretions can be extracted through a variety of processes.
Chemical flavorings are developed in a laboratory setting to mimic natural flavorings and are becoming more dominant in the industry as they are less expensive to produce.
Extracts are sold to manufacturers who use them in a wide variety of products including food, candles, cleaning supplies, cosmetics or other personal grooming products, or to retailers who sell them directly to consumers.
Manufacturers within this branch of industry may make a wide variety of different flavoring extracts, which may be sold as retail product and then used by private consumers, or prepared for the commercial market, after which the flavoring extracts are incorporated into new consumer products.
While there is no question that companies that make flavorings can thrive, they also face a wide range of risks. What kinds of flavoring extracts manufacturers insurance should these manufacturers carry? Read on to learn more about your options.
Flavoring extracts 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 flavoring extracts manufacturing insurance questions:
- How Much Does Flavoring Extracts Manufacturers Insurance Cost?
- Why Do Flavoring Extracts Manufacturers Need Insurance?
- What Type Of Insurance Do Flavoring Extracts Manufacturers Need?
How Much Does Flavoring Extracts Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small flavoring extracts manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Flavoring Extracts Manufacturers Need Insurance?
Like other businesses, companies manufacturing flavoring extracts cannot escape the fact that we live in a world fraught with risk - and no matter how hard you work to ensure that your business operates smoothly and safely, you may be impacted by a spectrum of perils at virtually any time.
Your facility may be damaged after an act of nature, such as an earthquake or wildfire, hits your location, for example, but smaller-scale disasters like thefts or acts of vandalism may also cause serious losses. Essential manufacturing equipment could malfunction, leading to massive repair or replacement costs.
An employee, or a third party visiting your facility, could sustain injuries on your premises. Your inventory could spoil as a result of a malfunction or natural problem such as a pest. A consumer may decide to file a lawsuit after believing that your product caused them to get ill, or another business may try to claim that your advertising materials violated copyright.
In all these cases, as well as many others, the costs can quickly become overwhelming. Armed with a comprehensive flavoring extracts manufacturers insurance plan, however, your flavoring extracts company will be able to weather the storm, as your insurer will cover a significant portion of the expenses you will face.
Alongside the fact that you will legally be required to carry certain kinds of insurance, protecting your business should be your prime reason to carefully evaluate your insurance needs.
What Type Of Insurance Do Flavoring Extracts Manufacturers Need?
Each manufacturer is going to have unique insurance needs, which are determined by factors such as the location of your facility, the nature of the ingredients and equipment you work with, your number of employees, and the size of your operation.
Because it can be challenging to navigate the insurance market, it is vital to talk to a skilled commercial insurance broker. Here, meanwhile, is a look at some of the most important types of flavoring extracts manufacturers insurance policies:
- Commercial Property: This form of insurance safeguards you from financial losses in the event that your facility and its contents are damaged by perils that include acts of nature, theft, and vandalism. Always check exactly what assets, and what perils, are covered, as this varies from one policy to the next.
- Commercial General Liability: Designed to protect your business if a third party sues you for property damage or bodily injury (such as when they are injured at your plant), this type of coverage will greatly reduce your legal costs. It is essential for almost any business, including manufacturers of flavoring agents.
- Product Liability: This type of flavoring extracts manufacturers insurance instead covers your product - if a consumer claims that your flavoring extracts were harmful to them, it is a vital part of your legal defense strategy, as it covers your attorney fees and settlement costs.
- Workers' Compensation: Regardless of how much emphasis your business places on health and safety, it is always possible for an employee to be injured at work. When that happens, workers comp reimburses their medical bills and covers any wages they lose if they have to take time off work.
Remember that, although these types of flavoring extracts manufacturers insurance will be important, your individual business is likely to require further types of coverage that may range from commercial auto to equipment breakdown insurance.
A commercial insurance broker will help you fill in the gaps, so that your business is fully covered.
Flavoring Extracts Manufacturing's Risks & Exposures
Premises liability exposure is light if visitor access is limited to repairmen and inspectors. 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, and generally level.
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. Recently, concerns have been raised about the possibility of carcinogens in some flavorings. Recall procedures must be in place for immediate activation if necessary.
Environmental impairment exposure is from the potential air, ground, or water pollution from chemicals used in processing, 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 the chemicals used to make the synthetic flavorings or from the natural plant or animal substances, either of which could cause eye, skin, or lung irritations. Injuries from cuts or punctures, unguarded processing machinery, burns caused by the heating machinery and 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.
Recently, concerns have been raised about the possibility of carcinogens in some flavorings. Workers should be aware of this hazard. 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. 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. Drivers may be injured in vehicle accidents or from slips and falls and lifting injuries at customers' premises.
Property exposure is high. Ignition sources include the machinery and equipment used for heating, cooling, and processing the raw materials, electrical wiring, and heating and air conditioning systems. Combustibles include the fuel sources for the equipment used in processing and the fire load from flammable oils and packaging materials. Naturally occurring essential oils are extremely flammable when concentrated.
Chemically manufactured flavorings have different characteristics but can be as flammable as natural oils, depending on the chemicals used and the process employed to produce the extract. Suppression systems are an important part of controlling the exposure.
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.
There should be alarms and warning indicators to notify when coolers and freezers are not operating properly. Backup generators and other emergency systems should be available to handle contingencies.
Since essential oils are highly concentrated, each barrel has a significant value, leading to a high theft potential. Appropriate security controls must be taken including lighting and physical barriers to prevent unauthorized access, and an alarm system that reports directly to a central station or the police department.
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 for checks and balances purposes. 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 are transported on company-owned vehicles. Since each barrel has high value, the total transit limit could be very high. Any overturn or collision could cause a total loss due to the fragility of the items and possible contamination.
Driver selection and tie-down procedures are vital. Valuable papers and records include proprietary formulas, inventory records, customer files, quality control information, and contracts with suppliers and distributors.
Commercial auto exposures are usually significant as delivery is an ongoing part of the operation. The cargo has a high value and if overturn occurs, the cleanup process will be difficult because of the concentration of the extract. Drivers must have an appropriate license, be experienced in transporting goods in barrels, and have acceptable MVRs. Vehicles must be well maintained with documentation kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2066 Chocolate And Cocoa Products, 2087 Flavoring Extracts And Flavoring Syrups, Not Elsewhere Classified
- NAICS CODE: 311920 Coffee and Tea Manufacturing, 311930 Flavoring Syrup and Concentrate Manufacturing, 311942 Spice and Extract Manufacturing, 311999 All Other Miscellaneous Food Manufacturing
- Suggested ISO General Liability Code(s): 52911
- Suggested Workers Compensation Code(s): 4825
Description for 2066: Chocolate And Cocoa Products
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 206: Sugar And Confectionery Products
2066 Chocolate And Cocoa Products: Establishments primarily engaged in shelling, roasting, and grinding cacao beans for the purpose of making chocolate liquor, from which cocoa powder and cocoa butter are derived, and in the further manufacture of solid chocolate bars, chocolate coatings, and other chocolate and cocoa products. Also included is the manufacture of similar products, except candy, from purchased chocolate or cocoa. Establishments primarily engaged in manufacturing candy from purchased cocoa products are classified in Industry 2064.
- Baking chocolate
- Bars, candy: solid chocolate
- Cacao bean products: chocolate, cocoa butter, and cocoa
- Cacao beans: shelling, roasting, and grinding for making chocolate
- Candy, solid chocolate
- Chocolate bars, solid: from cacao beans
- Chocolate coatings and syrups
- Chocolate liquor
- Chocolate syrup
- Chocolate, instant
- Chocolate, sweetened or unsweetened
- Cocoa butter
- Cocoa mix, instant
- Cocoa, powdered: mixed with other substances
Description for 2087: Flavoring Extracts And Flavoring Syrups, Not Elsewhere Classified
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 208: Beverages
2087 Flavoring Extracts And Flavoring Syrups, Not Elsewhere Classified: Establishments primarily engaged in manufacturing flavoring extracts, syrups, powders, and related products, not elsewhere classified, for soda fountain use or for the manufacture of soft drinks, and colors for bakers' and confectioners' use. Establishments primarily engaged in manufacturing chocolate syrup are classified in Industry 2066.
- Beverage bases
- Bitters (flavoring concentrates)
- Burnt sugar (food color)
- Cocktail mixes, nonalcoholic
- Coffee flavorings and syrups
- Colors for confectioners' use, except synthetic
- Cordials, nonalcoholic
- Drink powders and concentrates
- Flavoring concentrates
- Flavoring extracts, pastes, powders, and syrups
- Food colorings, except synthetic
- Food glace, for glazing foods
- Fruit juices, concentrated: for fountain use
- Fruits, crushed: for soda fountain use
Flavoring Extracts Manufacturers Insurance - The Bottom Line
Flavoring extracts manufacturers insurance policies can be different in coverages, exclusions and premiums. You can learn 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.
- 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.