Milk manufacturers and processers help get the world’s most popular and essential beverage safely to consumers. Processing milk for mass consumption involves a delicate process of heating, cooling, separating, storing, adding ingredients, and packaging to ensure quality, safety, and great taste.
At any point in the process—from pasteurization to placement on store shelves—something can go wrong that destroys your machinery or plant, destroys your milk products, or causes the products to be unsafe for consumption.
You need milk manufacturing insurance to provide a financial backup, so you can protect your livelihood and continue to operate.
Manufacturing fluid milk is the process by which milk is processed for beverage use. It involves a long and complex process of:
All of these processes must be done to exacting standards in order to produce safe and tasty milk. But during that process:
You need specific milk manufacturing insurance coverage designed for your unique risks and needs.
Dairy products are the 4th most-recalled food category in the US. At any point in the milk manufacturing process, milk can become contaminated and unsafe to consume.
Improper pasteurization is one of the many production errors that can cause milk to become contaminated and lead to a recall. Proper pasteurization heats milk to eliminate dangerous bacteria like Listeria and Salmonella.
If the temperature is not high enough or the milk is not heated for long enough, bacteria can grow and contaminate the milk. People who consume contaminated milk are at risk for serious stomach illness and even death.
When a contaminated product is discovered, either through random testing or after someone gets sick, it must be recalled from the market. Recalls are tremendously costly for food manufacturers and their business partners. In some cases, business relationships are permanently damaged, and consumer confidence in the brand or product never recovers.
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.
In general, a single product recall might involve the following types of costs:
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:
Commercial property insurance helps protect your manufacturing facilities (buildings) and their contents (separators, refrigeration equipment, pasteurizers) in the event of fire, weather events, theft, vandalism, and other covered perils.
In addition, talk to an 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 milk processing 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 milk manufacturing business. An independent agent can walk you through your options and help you decide what coverage you need.
Milk manufacturing employees work in a dangerous environment, even if you have strict safeguards in place. Workers’ compensation insurance protects employees from the costs of workplace injuries and illnesses.
The cost to insure your milk processing business depends on several factors, such as the size of your business and the types of policies you need to cover your unique risks. An agent can help you determine exactly what coverage you need and the right coverage limits and deductibles.
You can expect the costs of any policy to depend on factors like:
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 milk 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.