Candy manufacturers bring a little bit of joy to everyone. Whether you make hard candy, lollipops, gummies, caramels, or fudge, your day’s work brings a smile to kids and adults alike.
But the candy-making business is no laughing matter. Using precise processes and expensive, specialized machinery, you put a variety of ingredients into molds, add colors, stripes, and textures, insert fillings, and package, ship, and store your delightful creations.
Whether you make one kind of candy or candies with a variety of shapes, tastes, and textures, you face serious business risks that are as complex and diverse as your products.
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Why Do I Need Candy Manufacturing Insurance?
Safety concerns, business interruptions, property damage, and lawsuits have enormous costs for any candy manufacturer.
Consider how the following types of events can lead to devastating financial losses:
- Employee injuries (burns, machinery dangers, slips and falls, etc.)
- Equipment and building damage due to accidents, fire, theft, weather, and other natural disasters
- Machinery and equipment breakdowns
- Product and inventory loss due to utility and supplier interruptions
- Damage to products in transit
- Product defects and recalls
All of these risks come with a hefty price tag. You need a comprehensive set of candy manufacturing insurance policies that address these risks, and more, depending on the unique needs of your business.
Property Insurance for Candy Manufacturers
One of the biggest concerns for any candy manufacturer is protecting your business property, from your factory building and warehouses to everything that’s inside.
If you experience a fire, vandalism, or severe weather that damages your candy factory, you need property insurance to help you pay for repairing and replacing damaged property.
- Commercial property insurance protects your building and other business property in the event of a covered loss. It provides coverage for lost inventory, industrial equipment and machinery, warehouses and office space, office equipment, computers, and more. It may also provide coverage for neighboring facilities and completed products housed on your premises.
Another major property concern for candy manufacturers is the potential for damage to finished products or supplies that are in transit.
- Inland marine insurance is designed protect you from losses when cargo is damaged in transit. Any piece of property that is moved from one location to another can be covered with an inland marine policy.
Get a Backup Plan For Costly Business Interruptions
A candy manufacturing plant is filled with expensive, large machinery and equipment that is literally the key to keeping you in business.
If equipment malfunctions, breaks down, or is destroyed, you will experience production shutdowns that can last from a few hours to a few months while you wait for repairs or replacements to be made.
Meanwhile, you have to pay for the damage, make up for lost revenue, and try to stay in business.
This coverage is invaluable if you are forced to close your doors for an extended period in order to make repairs. It pays for rent, employee salaries, lost income, relocation fees, and more.
Imagine losing electric power in the middle of production. Hot, sticky candy ingredients could become stuck in a machine and destroy not only ingredients and inventory, but also the machinery. And the longer you remain shut down, the more the disruption will cost you.
- Utility interruption coverage can help you cover your losses for a predetermined time or until utility service is restored. You can also add an endorsement to include coverage for lost or spoiled product (e.g., molten candy that cools, hardens, and is ruined) if you have a utility interruption.
A breakdown of your specialized candy manufacturing equipment could cause additional property damage, as well as make your business unable to operate, pay for expenses, and earn revenue.
- Equipment breakdown insurance, often referred to as boiler and machinery coverage, covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage or loss. It pays for repair or replacement costs as well as business interruption costs related to a breakdown of covered machinery or equipment.
Liability Coverage for Candy Manufacturers
You can protect your business, your employees, and the general public from the costs associated with injuries and property damage that are caused by coming into contact with your business or your candy products.
- Commercial general liability (CGL) coverage protects you from outside claims of property damage or injury. If a customer or vendor tours your facility and is injured, this policy pays for medical bills and other expenses related to the incident. It also pays for your defense and judgments or settlements if you are sued.
- Product liability insurance covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of your product. If a child becomes ill after consuming your product, product liability coverage pays for medical bills and other expenses, as well as your defense costs if you are sued.
- Commercial auto insurance covers your vehicle fleet and drivers in the event of an accident or other vehicle damage that occurs with owned vehicles.
- Environmental practices or pollution liability coverage protects companies from the costs associated with damage caused by improperly disposing of hazardous waste or causing environmental harm.
- Excess liability coverage, or commercial umbrella coverage, provides liability protection above and beyond the liability coverage included in a commercial general liability and business auto policy. A commercial umbrella policy will pay when your other liability coverage has been exhausted.
Product Recall Coverage Is Essential for Any Candy Manufacturer
Product recalls can be devastating for candy manufacturers. Costs include everything from product removal and disposal to ongoing public relations, permanent brand damage, and decreased sales and 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 candy manufacturer for financial losses related to a product recall, including:
- Actual recall costs (product removal and disposal)
- Loss of profit
- Product replacement
- Extra expenses
- Reputation rehabilitation expenses
How Much Does Candy Manufacturing Insurance Cost?
Candy manufacturing insurance costs will vary depending on the size of your business and the coverage you need. A large, multi-location manufacturer will pay more than a small confectionary; a factory in a hurricane zone might pay more than one located away from the coast.
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), cost is hard to predict. But an independent agent can guide you though your options so you get coverage that meets your budget.
Find and Compare Quotes
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.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right candy 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.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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