Frozen Food Manufacturers Insurance Policy Information
Frozen Food Manufacturers Insurance. Frozen foods, ranging from vegetables and fruit to meat and fish, have been an important and convenient source of nutrition, to countless people, for many decades now.
Frozen food products manufacturers receive raw goods from butchers, dairies, farms, fishermen, orchards, slaughterhouses, or food brokers. Processing may include removing waste materials from the raw goods, cutting, blanching, or cooking, flavoring, packaging, freezing, and distributing finished goods to customers.
Due to the variety of products that fall into this classification, processes and operations may include blending, baking, or deep-fat frying. Finished goods may include frozen fruit, vegetables, meats, fish, shellfish, poultry, prepared meals, and desserts.
As it is crucial for frozen food products to remain their freshness and quality through the supply chain, from factory to the consumer's plate, however, the technology behind manufacturing frozen food products has continued to evolve.
Alongside traditional mechanical freezing methods, flash freezing, using liquid nitrogen, is now a popular way to process these products.
Manufacturers of frozen foods will first prepare the fresh product before immediately freezing and packaging it, after which it is ready to continue its journey. It is not difficult to imagine how complex the entire process of manufacturing frozen foods is; an error at any stage of production could render products unusable.
This fact represents just one of the many risks companies manufacturing frozen foods will face. To protect themselves, they will need frozen food manufacturers insurance. To find out more about the kinds of coverage that might be needed, read on.
Frozen food 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 frozen food manufacturing insurance questions:
- How Much Does Frozen Food Manufacturers Insurance Cost?
- Why Do Frozen Food Manufacturers Need Insurance?
- What Type Of Insurance Do Frozen Food Manufacturers Need?
How Much Does Frozen Food Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small frozen food manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Frozen Food Manufacturers Need Insurance?
Manufacturers within the frozen foods industry are vulnerable to the same perils as any other business, regardless of their branch of commerce, but they also have to think about risks unique to their own field.
While a savvy risk-management plan helps to mitigate many of those risks, the fact remains that it is impossible to prevent all mishaps and disasters. Should you be impacted by a major peril, being under-insured could easily saddle your business with massive debt or even force you into bankruptcy.
Your facility could, for instance, be impacted by criminal acts like theft or vandalism. An accident or malfunction could damage or destroy essential manufacturing equipment.
Even worse, your facility could fall victim to a natural disaster, such as a hurricane or earthquake, leaving it in ruins and interrupting production for the foreseeable future.
Risks also come in other forms. Food might spoil as it is shipped to you. Unfortunate wording on your website could lead to an expensive copyright claim, or a consumer could become sick after consuming one of your products, and decide to sue. A worker could be injured at work, or the same could happen to a third party attending your premises.
All of these perils - and countless others - have one common factor: they lead to significant, and sometimes exorbitant, expenses. Could your business cope with them on its own? The answer is almost always negative, and that is why it is so important to protect yourself with a frozen food manufacturers insurance plan.
In addition, certain types of coverage will be mandatory in your jurisdiction, and lenders will also require you to be properly insured.
What Type Of Insurance Do Frozen Food Manufacturers Need?
The question may be easy to ask - but the answer is far more complex. The exact types of coverage a frozen food manufacturer should carry depends on their individual circumstances.
Factors like the location of your facility, the size of your operation, how many employees you have hired, and the type of equipment you rely on, all play a role. For this reason, consulting a commercial insurance broker is an essential stop on the path to full insurance coverage.
In the meantime, companies in this industry should always carry these types of frozen food manufacturers insurance:
- Commercial Property: This type of insurance exists to protect your business interests in case an act of nature, theft, vandalism, or other covered peril does extensive damage to your facility and its contents, as it will cover many of the costs you would otherwise have to pay for yourself.
- General Liability: Should you face a third party personal injury or property damage lawsuit, this essential form of frozen food manufacturers insurance will cover your legal costs, as well as settlement expenses.
- Product Liability: Whether an end consumer alleges that your product caused them harm, or a batch of frozen food needs to be recalled for whatever reason, this type of insurance helps your company manage the costs.
- Workers Compensation: This kind of insurance protects you as well as your workers. If an employee is injured at your facility or over the course of their job, their medical bills as well as lost wages, if any, are covered.
In addition to these important types of insurance, manufacturers of frozen foods will also likely need business interruption insurance and commercial auto insurance, among others.
With the help of a skilled commercial insurance specialist, your business will be optimally protected from unnecessary financial loss with a comprehensive frozen food manufacturers insurance program in no time.
Frozen Food Manufacturing's Risks & Exposures
Premises liability exposure is moderate as drivers of pickup and delivery vehicles, repairmen, and inspectors regularly visit the premises. There must be clear markings as to where trucks may go and their movements must be controlled to keep the area safe and secure.
If tours are given or retail operations are conducted on premises, all life safety codes must be met to assure visitor safety. Good housekeeping is critical due to the potential for slips and falls. Spills of liquids should be promptly cleaned up and warning signs posted. Exits should be clearly marked and free of obstacles.
Adequate interior and exterior lighting should be available in the event of a power outage. Parking lots and sidewalks need to be in good repair with snow and ice removed.
Products exposures normally result from contamination, spoilage, and foreign objects in the finished goods. Raw milk and meat products should be tested before processing. 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 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.
The temperatures must be monitored to ensure that all stock remains frozen to prevent the growth of bacteria. An effective recall process must be in place that can be activated immediately.
Environmental impairment exposures are from 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 exposure is high due to burns caused by the cooking and processing machinery and equipment, back or hernia injuries from lifting, foreign objects in the eyes, and cuts from packaging materials. Employees may be exposed to chemicals, fungi, or excessive noise.
The excessive cold may cause frostbite injuries to the extremities. All walk-in freezers must have inside escape releases. 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. Slips and falls can result if the floors and premises are not kept clean. 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.
The seasonality of operations may require additional training and supervision of workers as turnover may be high. Drivers may be injured in vehicle accidents or from slips and falls and lifting injuries at customers' premises.
Property exposures are significant. Ignition sources include the cooking, refrigeration, and automated processing and conveyance equipment, electrical wiring, and heating and air conditioning systems. All machinery and equipment must be inspected and maintained regularly to avoid wear and tear or overheating losses. Wiring must be up to date and of 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. All frying operations must be carried out under hoods with suppression systems in place and automatic fuel shutoffs. A small fire or power outage of even moderate duration could result in a total loss as state, local, or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, or water.
Raw stock and final products should be stored away from the processing operation. Spoilage losses can be severe if the refrigeration and cooling equipment malfunctions or loses power. Controls, such as alarms, must be in place to warn if power is out or if the temperature rises in coolers and freezers. Emergency backup systems, such as generators, should provide power if an outage or shutdown occurs.
The business income exposure can be very high as some production equipment may be difficult to repair or replace quickly.
Equipment breakdown exposure is high due to the automated machinery and equipment. All machinery and equipment must be regularly inspected and maintained. If there are boilers, operational safety valves must be in place.
Crime exposure comes from employee dishonesty of both inventory and money. Background checks should be conducted on all employees. Ordering and inventory control should be carried out by two individuals so there are checks and balances. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Regular audits by an outside firm should be conducted. Loading docks should be supervised to minimize employee theft of finished goods. There is both an employee dishonesty and theft of money and securities concern if drivers pick up checks or accept money. Receipts should be issued for any cash payments received.
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. The goods must be transported in refrigerated units and kept frozen the entire time of transport in order to prevent spoilage. Delay of the trip and failure of the refrigeration units can result in loss of product.
Overturn or collision will cause a total loss with no salvage due to the potential for contamination. Trucks must be well maintained with refrigeration units checked regularly.
Valuable papers and records include proprietary recipes, inventory records, customer files, quality control records, and contracts with suppliers and distributors.
Commercial auto exposures may be significant if the manufacturer picks up raw materials from suppliers or delivers finished goods to customers. All delivery involves refrigerated trucks and transporting of frozen goods. The radius of operation is a major concern due to the pressure to transport the cargo in a timely manner.
The drivers should be experienced in operating refrigerated trucks and should have an appropriate license and acceptable MVRs. Vehicles must be well maintained with documentation kept in a central location. For long-haul deliveries, drivers may not exceed DOT standards for the number of hours worked per day and per week.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2013 Sausages And Other Prepared Meat Products, 2024: Ice Cream And Frozen Desserts, 2038 Frozen Specialties, Not Elsewhere Classified, 2053 Frozen Bakery Products, Except Bread, 2092: Prepared Fresh Or Frozen Fish And Seafoods, 2097 Manufactured Ice
- NAICS CODE: 311411 Frozen Fruit, Juice and Vegetable Manufacturing, 311412 Frozen Specialty Food Manufacturing, 311520 Ice Cream and Frozen Dessert Manufacturing, 311615 Poultry processing, 311710 Seafood Product Preparation and Packaging, 311813 Frozen Cakes, Pies, and Other Pastries Manufacturing 312113 Ice Manufacturing
- Suggested ISO General Liability Code(s): 53375
- Suggested Workers Compensation Code(s): 2112, 2095, 2143
Description for 2013: Sausages And Other Prepared Meat Products
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 201: Meat Products
2013 Sausages And Other Prepared Meat Products: Establishments primarily engaged in manufacturing sausages, cured meats, smoked meats, canned meats, frozen meats, and other prepared meats and meat specialties, from purchased carcasses and other materials. Prepared meat plants operated by packing houses as separate establishments are also included in this industry. Establishments primarily engaged in canning or otherwise processing poultry, rabbits, and other small game are classified in Industry 2015. Establishments primarily engaged in canning meat for baby food are classified in Industry 2032. Establishments primarily engaged in the cutting up and resale of purchased fresh carcasses, for the trade, (including boxed beef) are classified in Wholesale Trade, Industry 5147.
- Bacon, slab and sliced
- Calf's-foot jelly
- Canned meats, except baby foods and animal feeds
- Corned beef
- Corned meats
- Cured meats: brined, dried, and salted
- Dried meats
- Frankfurters, except poultry
- Hams, except poultry
- Luncheon meat, except poultry
- Meat extracts
- Meat products: cooked, cured, frozen, smoked, and spiced
- Pigs' feet, cooked and pickled
- Pork: pickled, cured, salted, or smoked
- Potted meats
- Puddings, meat
- Sandwich spreads, meat
- Sausage casings, collagen
- Smoked meats
- Spreads, sandwich: meat
- Stew, beef and lamb
- Vienna sausage
Description for 2024: Ice Cream And Frozen Desserts
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 202: Dairy Products
2024 Ice Cream And Frozen Desserts: Establishments primarily engaged in manufacturing ice cream and other frozen desserts. Establishments primarily engaged in manufacturing frozen bakery products, such as cakes and pies, are classified in Industry 2053.
- Custard, frozen
- Desserts, frozen: except bakery
- Fruit pops, frozen
- Ice cream: e.g., bulk, packaged, molded, on sticks
- Ice milk: e.g., bulk, packaged, molded, on sticks
- Ices and sherbets
- Juice pops, frozen
- Pops, dessert: frozen-flavored ice, fruit pudding and gelatin
- Pudding pops, frozen
- Sherbets and ices
- Tofu frozen desserts
- Yogurt, frozen
Description for 2038: Frozen Specialties, Not Elsewhere Classified
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 203: Canned, Frozen, And Preserved Fruits, Vegetables, and Food Specialties
2038 Frozen Specialties, Not Elsewhere Classified: Establishments primarily engaged in manufacturing frozen food specialties, not elsewhere classified, such as frozen dinners and frozen pizza. The manufacture of some important frozen foods and specialties is classified elsewhere. For example, establishments primarily engaged in manufacturing frozen dairy specialties are classified in Industry Group 202, those manufacturing frozen bakery products are classified in Industry Group 205, those manufacturing frozen fruits and vegetables are classified in Industry 2037, and those manufacturing frozen fish and seafood specialties are classified in Industry 2092.
- Dinners, frozen: packaged
- French toast, frozen
- Frozen dinners, packaged
- Meats, frozen
- Native foods, frozen
- Pizza, frozen
- Soups, frozen: except seafood
- Spaghetti and meatballs, frozen
- Waffles, frozen
- Whipped topping, frozen
Description for 2053: Frozen Bakery Products, Except Bread
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 205: Bakery Products
2053 Frozen Bakery Products, Except Bread: Establishments primarily engaged in manufacturing frozen bakery products, except bread and bread-type rolls. Establishments primarily engaged in manufacturing frozen bread and bread-type rolls are classified in Industry 2051.
- Bakery products, frozen: except bread and bread-type rolls
- Cakes, frozen: pound, layer, and cheese
- Croissants, frozen
- Doughnuts, frozen
- Pies, bakery, frozen
- Sweet yeast goods, frozen
Description for 2092: Prepared Fresh Or Frozen Fish And Seafoods
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 209: Miscellaneous Food Preparations And Kindred
2092 Prepared Fresh Or Frozen Fish And Seafoods: Establishments primarily engaged in preparing fresh and raw or cooked frozen fish and other seafoods and seafood preparations, such as soups, stews, chowders, fishcakes, crabcakes, and shrimp cakes. Prepared fresh fish are eviscerated or processed by removal of heads, fins, or scales. This industry also includes establishments primarily engaged in the shucking and packing of fresh oysters in nonsealed containers.
- Chowders, fish and seafood: frozen
- Crabcakes, frozen
- Crabmeat picking
- Crabmeat, fresh: packed in nonsealed containers
- Fish and seafood cakes, frozen
- Fish fillets
- Fish sticks
- Fish: fresh and frozen, prepared
- Oysters, fresh: shucking and packing in nonsealed containers
- Seafoods, fresh and frozen
- Shellfish, fresh and frozen
- Shellfish, fresh: shucked, picked, or packed
- Shrimp, fresh and frozen
- Soups, fish and seafood: frozen
- Stews, fish and seafood: frozen
Description for 2097: Manufactured Ice
Division D: Manufacturing | Major Group 20: Food And Kindred Products | Industry Group 209: Miscellaneous Food Preparations And Kindred
2097 Manufactured Ice: Establishments primarily engaged in manufacturing ice for sale. Establishments primarily engaged in manufacturing dry ice are classified in Industry 2813.
- Block ice
- Ice cubes
- Ice plants, operated by public utilities
- Ice, manufactured or artificial: except dry ice
Frozen Food Manufacturers Insurance - The Bottom Line
Not all frozen food manufacturers insurance policies are created equal. You can discover if your manufacturing business has the best fit insurance policies by talking to an experienced commercial insurance agent.
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.