Prepared Sauce Manufacturing Insurance

What You Need to Know About Prepared Sauce Manufacturing Insurance

Ann Herro | August 23, 2018

Prepared sauce manufacturers purchase fruits, vegetables, and other ingredients from suppliers, and combine them to manufacture a wide variety of food products, such as:

  • Salad dressing
  • Cider and cider vinegar
  • Certain dips
  • Horseradish, mayonnaise, and mustard
  • Sandwich spreads
  • Seafood, meat and vegetable sauces (non-tomato based)
  • Tartar and Worcestershire sauce

Prepared sauce manufacturing involves a variety of complex and expensive manufacturing equipment, as well as processing and packaging activities that must be carried out to exacting standards. Prepared sauce manufacturers work diligently to ensure that they are producing a delicious product that is safe to consume. 

When something goes wrong, like a fire, property loss, or spoilage, prepared sauce manufacturing insurance can help you make repairs and remain financially viable. Find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. 

Why Do I Need Prepared Sauce Manufacturing Insurance? 

Prepared sauce manufacturers—and all food processing companies—face a variety of typical risks, like employee injuries, vehicle accidents, property damage, and liability claims and lawsuits. What’s more, they face unique risks related to food safety and product recalls. 

Spoilage, supply shortages, equipment breakdowns, and recalls can have a devastating impact on your ability to operate, earn revenue, and pay for ongoing expenses. And if something like a fire or a severe storm destroyed your plant, would you be able to rebuild?

In order to survive when the worst happens, prepared sauce manufacturers need tailored insurance policies that cover both the more common and unique risks that you face. Your prepared sauce manufacturing insurance should help you protect your commercial property, your customers, and your employees from all that can go wrong. 

What’s more, you need coverage for liability claims and lawsuits if someone sues you, as well as the excessive costs that are inevitable if you must recall a product from the market.

What Does Prepared Sauce Manufacturing Insurance cover? 

Prepared sauce manufacturers need a variety of business insurance policies to protect them from numerous property and liability risks. These policies can:

  • Help you pay for repairing and replacing damaged property .
  • Help you cover expenses during a temporary closure. 
  • Help you pay defense costs and damages if you are sued.

Property Insurance for Prepared Sauce Manufacturers

Commercial property insurance helps you pay for repairs and replacement of buildings and equipment when your commercial property is damaged by fire, weather, smoke, break-ins, or vandalism. Certain types of property insurance also help you with lost income and ongoing expenses if you must temporarily close while you make repairs. 

  • Commercial property insurance: Protects your building and other property in the event of a covered loss, such as fire, vandalism, smoke, or theft. It provides coverage for physical damage to equipment and machinery, factories, warehouses, office space, office equipment, computers, and more. 
  • Business interruption coverage, or business income coverage: Protects your earnings and helps to pay expenses if your business is unable to operate because of damage caused by some type of covered disruption (fire, weather, etc.).
  • Equipment breakdown insurance: Supplements your business property insurance. It covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage or loss. 
  • Utility interruption coverage: Reimburses you for costs related to breakdowns in utility services (water, electrical) that force you to temporarily stop production. 
  • Cargo and goods-in-transit coverage, including ocean marine coverage and/or inland marine coverage: Protects your products as they are transported from place to place. 
  • Spoilage coverage: Offers financial protection for the costs of goods that spoil on-site.

Liability Insurance for Prepared Sauce Manufacturers

Liability claims arise when someone is harmed as a result of coming into contact with your business, your products, or your employees. You can be required to pay for damages (medical bills, repairs to damaged property, etc.), and you may even be sued and required to pay a settlement or judgment. 

Even if the claims against you are unfounded, you have to defend yourself. Any kind of legal defense is expensive. Your commercial liability insurance is there to help. 

  • Commercial general liability (CGL) insurance: This is necessary for occasions when your business is negligent and causes bodily injury or property damage to a third party. Your CGL policy provides coverage for attorney fees, court costs, settlements, and judgments up to the limits of your policy. 
  • 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 you are sued because a tainted food product makes someone sick, you may be required to pay for medical costs, compensatory damages, economic damages, attorney fees, court costs, and more. 
  • Commercial auto insurance: Covers your vehicle fleet and drivers in the event of an accident or other vehicle damage. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage, and medical bills, as well as any costs related to lawsuits due to auto accidents involving your vehicle fleet.
  • Commercial umbrella insurance, or excess liability coverage: Provides an extra layer of liability protection to any of several other policies you might have. It is activated when the limits of your other applicable liability policies have been exhausted, protecting you when a claim exceeds the amount of coverage available from any other applicable policy. 

Product Recalls Cost Food Manufacturers Millions

Product recalls are a major source of danger for food manufacturers, as well as their vendors, suppliers, and distribution partners. In 2016, there were 764 food recalls in the U.S., an increase of 22% over the previous year. 

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. 

Product recall insurance can help you. It typically covers a wide range of costs related to a food recall, including:

  • Actual recall costs (product removal and disposal)
  • Loss of profit
  • Product replacement
  • Extra expenses
  • Reputation rehabilitation expenses (public relations and communications costs, etc.)

Protect Your Employees With Workers’ Compensation Insurance

Food processing workers are susceptible to a wide range of on-the-job injuries and illnesses, including:

  • Repetitive motion injuries caused by material handling and physical stress
  • Contact with moving objects
  • Slips, trips, and falls
  • Injuries due to use of heavy equipment
  • Eye or skin injuries or irritations

Workers’ compensation insurance covers costs associated with work-related injuries and illnesses. It pays for medical care and lost income for an injured worker while they are unable to work. Workers’ compensation insurance also helps protect employers from lawsuits by injured employees. 

Each state has workers’ compensation insurance laws. Most states require nearly every business that has employees to provide this coverage. 

Your agent should be able to educate you about your state’s workers’ compensation requirements, and help you find adequate coverage. 

How Much Does Prepared Sauce Manufacturing Insurance Cost? 

The size of your business and the types of policies you need to cover your unique risks are the biggest predictors of how much your business insurance will cost. A variety of variables that are unique to your business help determine how risky you are to insure, and consequently how costly your insurance will be. 

To determine the types and amounts of coverage that you need, your insurance agent will evaluate several factors, including:

  • Number of employees
  • Types of manufacturing equipment
  • Size and location of your building 
  • Volume and geographical distribution of your products
  • Size of vehicle fleet

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 prepared sauce 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 insurance 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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