Butter manufacturing involves a long and complex process of turning milk fat into a finished solid—butter. While butter has been made by hand for thousands of years, modern butter manufacturers use carefully calibrated—and expensive—equipment to ensure a flawless final product.
Unfortunately, anything can go wrong in any food manufacturing environment. You can experience:
To protect the long-term success of your butter manufacturing business, you need the right business insurance.
There are a lot of things that can go wrong in the butter manufacturing business.
Employees risk injury every day as they work with dangerous equipment and machinery. Meanwhile, you rely on that machinery to function. If it is damaged or breaks down, the financial losses from stopped production and product spoilage can be devastating. You may lose revenue, be forced to dispose of product and inventory, or be sued by consumers or other businesses who are harmed.
Butter manufacturing insurance can help you protect your assets from the costs of lawsuits, building and machinery damage, and the immediate and long-term effects of a product recall.
Butter manufacturers are not immune to product contamination and recalls. In fact, dairy products are the 4th most-recalled food category in the US.
Some of the most common causes of food contamination and recalls include:
A study by the Food Marketing Institute and the Grocery Manufacturers Association estimates that the average cost of a recall for a food manufacturer is $10 million—not including ongoing lost sales and reputational damage.
Commercial property insurance helps protect your manufacturing facilities (buildings) and their contents (office equipment and heavy machinery) in the event of fire, weather events, theft, vandalism, and other covered losses.
Talk to an independent agent about various other types of property coverage that you might need:
Commercial general liability (CGL) insurance provides broad liability protection for injuries and property damage that occur on your premises or because of your carelessness.
If a customer is involved in an accident in your butter factory creamery, your CGL coverage will pay for any related medical bills. CGL insurance also pays for repairs or a replacement if a customer’s personal property is damaged on your premises.
Additional liability coverage is probably necessary for your butter manufacturing business. Talk to an agent about the following types of liability coverage:
Butter manufacturing employees work in a dangerous environment, even if you have strict safeguards in place. Butter manufacturers also need workers’ compensation insurance to protect employees from the costs of workplace injuries and illnesses.
If one of your butter products is recalled, the costs can be disastrous. Product recall costs can include:
After the immediate crisis subsides, the costs of a recall can continue to haunt your business for years in the form of decreased sales, reputational and brand harm, and decreased stock value.
Product recall insurance can help you with many of these costs, and might even help you avoid bankruptcy or closing your doors. It typically will reimburse a manufacturer for financial losses related to a product recall, including:
The cost of butter manufacturing insurance depends on several factors, including the size of your business and the types of policies you need to cover your unique risks.
With so many variables (e.g., number of employees, types of manufacturing equipment, size and location of your building, and the volume and geographical distribution of your products), your costs may vary significantly from other butter manufacturers.
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Our agents simplify the search process for finding the right butter manufacturing insurance. They’ll walk you through some handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.