Ice Cream Manufacturers Insurance Policy Information
Ice Cream Manufacturers Insurance. Ice cream, a favorite treat for many, has bee popular for a very long time - but the manufacturing process and flavors continue to evolve and improve to this day.
Ice cream manufacturers receive milk from dairies or fluid milk processors and turn it into frozen products such as ice cream, frozen custard, frozen yogurt, sherbets and miscellaneous items to sell directly to retailers such as grocery stores and restaurants.
Since milk naturally contains bacteria that will cause it to spoil quickly even if refrigerated, milk and milk products are put through a heating process called pasteurization to destroy the bacteria.
Additional processes used to manufacture ice cream include blending, homogenizing, flavoring, coloring, aerating, adding fruits, nuts, or other ingredients, packaging, and freezing. Ice cream manufacturers are subject to regulation by the USDA and FDA.
To make ice cream, manufacturers depend not just on excellent raw materials ranging from dairy to non-dairy bases as well as fruit, chocolate, caramel, and even herbs, but also on complex and valuable machinery, without which the ice cream could never be as creamy and fluffy as it is.
There is no question that ice cream manufacture is a rewarding and exciting field of industry, and it is also clear that companies ranging in size from small, specialty, ice cream makers to large household names, can be extremely successful.
At the same time, it is also true that ice cream manufacturers face a variety of risks, in part due to the fact that food manufacturers have to content with the possibility that materials will be spoiled, and in part because the safety and quality of the product is of vital importance.
To protect their financial health in case of unforeseen circumstances, having the ice cream manufacturers insurance is essential. What might that entail? Find out more in this brief guide.
Ice cream 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 ice cream manufacturing insurance questions:
- What Is Ice Cream Manufacturers Insurance?
- How Much Does Ice Cream Manufacturers Insurance Cost?
- Why Do Ice Cream Manufacturers Need Insurance?
- What Type Of Insurance Do Ice Cream Manufacturers Need?
- What Does Ice Cream Manufacturers Insurance Cover & Pay For?
What Is Ice Cream Manufacturers Insurance?
Ice cream manufacturers insurance is a type of insurance coverage specifically designed for companies that manufacture and sell ice cream products. This insurance policy provides protection against a variety of risks and liabilities associated with the production and sale of ice cream.
These risks may include product liability, food contamination, spoilage, and damage to equipment, among others. This insurance coverage can help ice cream manufacturers to mitigate financial losses and secure their operations in the event of unexpected circumstances.
How Much Does Ice Cream Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small ice cream manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Ice Cream Manufacturers Need Insurance?
Arming yourself with comprehensive insurance coverage not only allows ice cream manufacturers to meet legal requirements and secure lender cooperation, it is, first and foremost, also the most secure way to protect your business from the many threats it could be confronted with.
Ice cream manufacturing businesses have to consider universal hazards as well as industry-specific risks as they consider their insurance needs.
Your facility could be damaged in an act of nature, such as a wildfire or hailstorm, or you may suffer damage and loss after a theft, act of vandalism, or catastrophic accident. Essential equipment could malfunction. Raw materials may be spoiled while in transit. Even a power outage could have a profound effect on your inventory.
Ice cream manufacturers also have to take the possibility of lawsuits into account, as well as the expenses that may follow in the event that an employee sustains an occupational injury.
As a successful business, you may be able to cover the costs associated with minor incidents comfortably, but large-scale perils easily lead to such massive costs that they could jeopardize the future of your ice cream company.
With the right ice cream manufacturers insurance coverage, however, the costs will be rendered manageable, or your insurer may foot the entire bill.
What Type Of Insurance Do Ice Cream Manufacturers Need?
Ice cream manufacturers will need to carry multiple types of insurance to successfully shield themselves from devastating financial losses. The exact nature of your insurance needs depends on factors like the location of your facility, your number of employees, the size of your operation, and the types of raw materials you process.
That is why companies in this industry always need to consult a commercial insurance broker, who can help them craft a custom insurance plan. However, among the most important types of ice cream manufacturers insurance are:
- Commercial Property: This kind of insurance coverage protects your business from financial loss if your facility is struck by perils such as acts of nature, vandalism, and theft. Both the building and its contents are covered.
- General Liability: Your legal defense costs and settlement payments are both (at least partially) covered by this form of ice cream manufacturers insurance, in the event that a third party is injured on your premises or as a result of your company's actions. Should your business cause property damage to third parties, the costs also fall under commercial general liability insurance.
- Product Liability: This type of insurance performs the same function of covering your legal fees, but in this case as they relate to your product. Should someone allege that your ice cream caused them medical problems, or in case a product recall is required, your expenses are covered.
- Workers' Compensation: If one of your employees were to sustain an injury at work, this kind of insurance covers their medical needs, and, if necessary, any lost income resulting from the injury.
While these types of ice cream manufacturers insurance form the backbone of a solid insurance program, you may have additional needs - in the form of inland marine, commercial auto, and equipment breakdown insurance, to name some examples. To find out more, speak to a reputable commercial insurance broker.
Ice Cream 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 in order to keep the area safe and secure.
If tours are given or the manufacturer has a retail store 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 are moderate due to the possibility of contamination, spoilage, and foreign objects in the finished products. Raw milk should be tested before processing. Pasteurization must be conducted under FDA conditions. 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. Stock dating and rotation are important factors. Metal detection machines should be in place to check on metal contamination from machinery. An effective recall program must be in place that can be activated immediately.
Environmental impairment exposures can occur from underground or aboveground fuel tanks, leakage of refrigerants such as ammonia and chlorofluorocarbons, and the disposal of waste products. Storage and waste disposal must comply with all federal and state requirements.
All waste items must be removed regularly by a qualified outside contractor. Wastewater must be checked to prevent contaminants from entering the air, ground, or water. If there are underground storage tanks, a UST policy may be required.
Workers compensation exposure results from burns caused by the heating machinery and equipment, back injuries or hernias from lifting, foreign objects in the eye, and slips and falls from spills and inadequate housekeeping. The automated machinery can cause injury and loss if not properly guarded.
The excessive cold may cause frostbite injuries to the extremities, so appropriate gloves and boots should be provided. All walk-in freezers must have inside escape releases. Employees may be exposed to chemicals or excessive noise. Adequate safety equipment should be required for employees in processing areas. 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.
Delivery drivers are exposed to lifting injuries in the loading and unloading process. Employees delivering goods to customers can be injured in vehicle accidents.
Property exposures are high. Ice cream manufacturers may be located in rural areas with limited firefighting resources and water supply. Ignition sources include electrical wiring, heating and air conditioning systems, refrigeration/cooling equipment, and automated conveyance and processing equipment.
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.
Dairy products must meet extremely high sterility requirements, with most processes taking place in closed containers to prevent contamination. This sterile environment helps control most fire exposures. However, if a small fire does begin, a total loss could occur as a state, local, or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, heat or water.
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 emergency 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 which can malfunction or breakdown. All machinery and equipment must be regularly inspected and maintained. If there are boilers, operational safety valves must be in place.
Crime exposure is from employee dishonesty of both inventory and money. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that 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. If drivers pick up checks or accept money, there is both an employee dishonesty and theft of money and securities concern. Money can be an exposure if the dairy accepts cash for tours or retail operations. Receipts should be issued for any cash payments received.
Inland marine exposure is from accounts receivable if the manufacturer bills customers, computers (which may include computer-run processing systems), contractors' equipment for forklifts, goods in transit, and valuable papers and records.
Bulk milk is transported in refrigerated tankers that must be used only for milk. Each must be sanitized after every use. The tankers are bulky and will suffer total loss if overturned due to the potential loss of refrigeration and spoilage.
Valuable papers and records exposure is due to proprietary recipes, inventory records, customer files, quality control records, and contracts with suppliers and distributors.
Commercial auto exposures can be significant if the manufacturer picks up raw milk from dairy farms or delivers finished frozen goods to customers. Deliveries may be made in darkness or inclement weather. Drivers should be assigned to routes to be familiar with traffic patterns.
Because many deliveries are made to grocery stores and schools, drivers must be trained to be aware of the presence of children around and behind the vehicles. Liquids may sway while being transported which will affect the handling of the vehicle. Drivers must have an appropriate license, acceptable MVRs, and must be trained in driving tankers.
Drivers making long-haul deliveries may not exceed DOT standards for the number of hours worked per day and per week. Vehicles must undergo documented, regular maintenance.
What Does Ice Cream Manufacturers Insurance Cover & Pay For?
Ice cream manufacturers, like any other businesses, can face a variety of legal issues that may lead to lawsuits. Here are a few examples, along with the type of insurance that could help mitigate these risks:
1. Product Liability: If a customer falls ill or is injured due to consuming an ice cream product, they might sue the manufacturer. The problem could be due to contamination, allergen mislabeling, or foreign objects in the product. In this case, Product Liability Insurance can protect the company. It covers the legal fees, settlement costs, and any medical costs that might arise from a lawsuit, ensuring that the company does not suffer significant financial damage.
2. Intellectual Property Infringement: Ice cream manufacturers might be sued for using a recipe, brand name, or marketing strategy that is too similar to another company's. Intellectual Property Insurance can help in this situation. It provides coverage for legal defense against charges of IP infringement, as well as any damages or settlements that the company may be required to pay.
3. Employee Injury: Employees working in an ice cream manufacturing facility can get injured on the job due to various reasons such as slips, falls, or machine-related incidents. In such cases, employees can sue the company for compensation. Workers' Compensation Insurance can safeguard the manufacturer in this scenario. It not only covers the medical expenses and lost wages of the injured employee but also the legal costs if the employee decides to sue.
4. Equipment Breakdown: Ice cream manufacturing involves a variety of specialized equipment. If this equipment breaks down, it can delay production and lead to financial loss. If a third party has leased equipment to the manufacturer and it breaks down due to negligence, they might sue the manufacturer. Equipment Breakdown Insurance, often part of a larger commercial property insurance policy, can cover the repair or replacement of the equipment and any associated legal costs.
5. Breach of Contract: Ice cream manufacturers often have contracts with suppliers, distributors, and retailers. If they fail to deliver the agreed-upon goods or services, they could be sued for breach of contract. Commercial General Liability Insurance often includes coverage for legal defense costs in case of such lawsuits, and can also cover damages awarded in a lawsuit.
These are just a few examples of how insurance can provide financial protection to ice cream manufacturers against lawsuits. Every business is unique, and insurance needs can vary. Therefore, it is essential for companies to work with knowledgeable insurance professionals to ensure they have the right coverage for their specific risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2024 Ice Cream And Frozen Desserts
- NAICS CODE: 311520 Ice Cream and Frozen Dessert Manufacturing
- Suggested Workers Compensation Code(s): 2039 Ice-Cream Manufacturing & Drivers
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
- Mellorine
- Parfait
- Pops, dessert: frozen-flavored ice, fruit pudding and gelatin
- Pudding pops, frozen
- Sherbets and ices
- Spumoni
- Tofu frozen desserts
- Yogurt, frozen
Ice Cream Manufacturers Insurance - The Bottom Line
Ice cream manufacturers insurance policies can vary in cost and coverage. You can discover if your 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.
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.
