Whether your pet likes his kibble to taste like chicken, fish, or lamb, in big bites or small bites, in bright colors or basic brown, making pet food involves a complex process during which a lot can go wrong.
Dry kibble is made using a complicated manufacturing process called extrusion. This allows pet food manufacturers to create large quantities of shelf-stable pet food that includes all of the ingredients necessary for healthy dogs and cats.
First, proteins like beef, chicken, and eggs are mixed with grains, cereals, and other ingredients to create dough. The dough is fed into an expander, which uses extreme pressure and high temperatures to cook the ingredients. The cooked dough is forced out, or extruded, through die-cut holes and formed into kibble-sized pieces.
The pieces then puff up, are passed through a dryer, and are sprayed with fats, oils, vitamins, and minerals. Immediate packaging ensures that the fats and oils do not spoil.
At any point in the pet food manufacturing process, something can go wrong that:
You need pet food manufacturing insurance to provide a financial backup, so you can protect your livelihood and continue to operate.
People love their pets. They are members of the family and trusted companions, and they are highly dependent on us to ensure their health and well-being. Most pet owners take the safety and quality of the pet food they buy as seriously as the food they buy for themselves.
Product recalls happen when a product is determined to be somehow flawed or unsafe for the public. In the case of pet food, recalls may occur due to things like contamination with a toxin or foreign objects, or mislabeling.
One of the largest product recalls ever—for any type of product—was a pet food recall.
In 2007, 14 cats and dogs died after eating pet food manufactured by Menu Foods. The food contained wheat gluten that was contaminated by melamine, an industrial chemical that can cause kidney failure.
Menu Foods recalled about 60 million cans and packages of pet food, yet even more pets were killed as the scope of the contamination continued to unfold. The physical product recall cost Menu Foods $42 million, not including lost sales. After an initial $8 million payout to affected pet owners, the company was forced to pay an additional $24 million settlement for damages and vet bills.
Pet food manufacturers need a variety of business insurance policies to protect them from numerous property and liability risks. These policies can:
Talk to an insurance agent about which of the following types of policies you need to protect your assets.
Just as in the Menu Foods case, the costs of a product recall can haunt your pet food manufacturing business for years. In addition to immediate tangible costs for things like product removal and disposal, your reputation may never truly recover. Years of lost sales can take a toll on your stock price and everything else that you do.
You can take every precaution to ensure that your products are safe to consume, but many things are simply out of your control. In the Menu Foods case, the contaminated ingredient came from a Chinese supplier. Dogs and cats became sick and died before anyone was aware of the lurking danger.
It’s important to talk to your insurance agent about product recall insurance. It is essential coverage for pet food manufacturers.
Product recall insurance can help you get through a recall with coverage for a wide range of related costs, such as:
Your pet food factory can be a dangerous place for your employees as they work with large machinery that uses high pressure and extreme heat. Your employees might be susceptible to cuts, crushed fingers or limbs, burns, slips and falls, and repetitive motion injuries.
What’s more, workers who are exposed to large amounts of grains and other pet food ingredients may experience both short- and long-term respiratory illnesses.
Workers’ compensation insurance provides insurance coverage when accidents and illnesses happen in the workplace, or as a result of someone’s work. It ensures that the injured worker gets medical care and income replacement if they are unable to work.
Your insurance agent can help you navigate your state’s workers’ compensation laws and requirements.
The cost to insure your pet food factory 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 pet food 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.
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, and get a one-on-one consultation for the best coverage for you.