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Flavoring Extracts Manufacturers Insurance Policy Information

Flavoring Extracts Manufacturers Insurance

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:

What Is Flavoring Extracts Manufacturers Insurance?

Flavoring extracts manufacturers insurance is a type of insurance coverage specifically designed for companies that manufacture flavoring extracts and other similar products. This type of insurance provides financial protection against a wide range of risks and hazards that are common in the flavoring extract manufacturing industry.

Some of the typical risks covered by flavoring extracts manufacturers insurance include property damage, liability for product defects, food contamination, and injury or illness to employees. Additionally, the insurance policy may also provide coverage for legal expenses and compensation for loss of income.

The exact coverage of flavoring extracts manufacturers insurance will depend on the specific policy and the needs of the individual manufacturer.

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?

Insurance For Manufacturers

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.

What Does Flavoring Extracts Manufacturers Insurance Cover & Pay For?

Flavoring Extracts Manufacturers Insurance Claim Form

Flavoring extract manufacturers can be sued for several reasons. Here are a few scenarios and how insurance might provide protection:

1. Product Liability: If a customer becomes sick or injured due to consuming a product, the manufacturer can be held liable. For example, if an extract is found to contain a harmful contaminant, a consumer or group of consumers might sue the manufacturer.

Insurance Protection: Product liability insurance can cover the costs associated with such lawsuits. This insurance protects businesses that manufacture, wholesale, distribute, and retail products against financial loss due to a defective product that causes injury or bodily harm.

2. Intellectual Property Infringement: If a flavoring extract manufacturer unknowingly uses a patented process or infringes on another company's trademarked flavor, they may face a lawsuit.

Insurance Protection: Intellectual Property (IP) insurance can protect businesses in such scenarios. It can cover legal fees and damages if the business is accused of IP infringement. Furthermore, some policies may also cover the cost of enforcing IP rights against other entities.

3. Breach of Contract: If a flavoring extract manufacturer fails to deliver products to a client according to the agreed contract, the client may sue for damages. For instance, if the manufacturer agreed to deliver a large batch of a specific flavor extract by a certain date and they fail to do so, leading to the client losing business, they might face a lawsuit.

Insurance Protection: Commercial General Liability (CGL) insurance often covers legal defense costs and will pay on behalf of the insured for certain types of lawsuits, including some contract disputes. Furthermore, Professional Liability Insurance (also known as Errors and Omissions insurance) can cover the costs of defense and any judgments up to the policy limits.

4. Employee Injuries: If an employee of the manufacturing company is injured on the job, such as from handling hazardous materials, they may sue the company for not providing a safe working environment.

Insurance Protection: Workers' Compensation Insurance can provide coverage for such lawsuits. This insurance covers medical expenses, rehabilitation costs, and any lost wages for employees who are injured or become sick at work. It also provides employer liability coverage, which can cover the costs if the employer is sued over the incident.

5. Environmental Damage: Flavoring extract manufacturers often use various chemicals that, if not properly managed, can cause environmental harm. If the manufacturer accidentally causes environmental damage, like water pollution from chemical runoff, they could face lawsuits from affected parties or fines from regulatory agencies.

Insurance Protection: Environmental Liability Insurance, or Pollution Liability Insurance, can provide protection in such cases. This insurance can cover the costs associated with cleanup efforts, legal defense related to the pollution event, and any related fines or settlements.

Commercial Insurance And Business Industry Classification

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.

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.

Manufacturing Insurance

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.

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