Eating ice cream and other frozen treats is one of life’s simple pleasures. As an ice cream and frozen dessert manufacturer, your products bring joy to millions of adults and kids every day.
Your manufacturing process is complex, involving expensive, heavy equipment, precise recipes and processes, and strict adherence to health and safety standards. Yet anything can go wrong, from a fire in your plant to an unseen contaminant that finds its way into your products, harms consumers, and destroys your business.
Ice cream and frozen dessert 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.
You need a variety of ice cream manufacturing insurance policies to act as a financial backup when you face losses due to:
Food products can be recalled when they are contaminated by:
Dairy products are the 4th most-recalled food category in the U.S.
Blue Bell Creameries was forced to shut down production in April 2015 when 10 people were hospitalized and two people were killed after eating ice cream tainted with Listeria, which can cause severe stomach illness. The company was forced to recall more than 8 million gallons of ice cream and frozen desserts nationwide, and had to lay off more than 1,400 workers.
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. Blue Bell paid out $850,000 in fines and an estimated $200 million in overall recall costs.
If one of your ice cream products is recalled, the costs can disastrous. Product recall costs can include:
The aftermath of a recall can be long and costly. Your business may see ongoing costs for years in the form of decreased sales, reputational and brand harm, and decreased stock value.
Product recall insurance can help you stay afloat and recover by reimbursing you for financial losses related to recall. It covers things like:
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 perils.
In addition, you may need various other types of property coverage:
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 plant, 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 ice cream and frozen dessert manufacturing business. Talk to an agent about the following types of liability coverage:
Your employees face dangers at work every day, even if you have strict safety procedures in place. Workers’ compensation insurance protects employees from the costs of workplace injuries and illnesses.
After the Blue Bell recall, two shareholders sued Blue Bell and key members of its leadership team, alleging financial losses caused by their management decisions.
According to the suit, executives and board members failed to maintain the necessary standards to produce and distribute Blue Bell’s products in a safe and sanitary manner. These failures led to the Listeria outbreak, subsequent recall, and millions of dollars in lost sales.
This is where directors and officers (D&O) liability insurance comes in. It provides protection for directors and officers of companies against legal judgments and costs arising from a variety of different business decisions.
In this case, key individuals at Blue Bell were held responsible for decisions that resulted in contaminated products reaching the market, and the financial consequences for shareholders. D&O liability coverage would pay for defense costs and any settlements or judgments that were required to be paid.
The cost of ice cream manufacturing insurance depends on several factors, including the size of your business and the types of policies you need to cover your unique risks.
Some other variables that can impact the cost of business insurance include:
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 ice cream 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.