Pretzel manufacturers are part of the commercial bakery industry. This industry includes establishments that are primarily engaged in manufacturing fresh and frozen bread, rolls, and other fresh bakery products.
Pretzels were first introduced in the seventh century, making them one of the world's oldest snack foods! But today, pretzels are manufactured almost entirely with automated machinery.
Pretzel manufacturing can be risky. Getting ingredients from suppliers, processing them through the manufacturing plant, and producing your final product involves a variety of complex and expensive manufacturing equipment. Processes, recipes, and packaging must be carried out to exacting standards, ensuring a tasty, high-quality product that, above all, is safe to consume.
Along with typical manufacturing concerns (fires, injuries, and property loss), pretzel manufacturers face risks like spoilage, contamination, tampering, and foodborne illnesses that can harm—and even kill—consumers.
Why Do I Need Pretzel Manufacturer Insurance?
Manufacturing both hard and soft pretzels is almost a completely automated process that converts raw ingredients into a shaped, finished product.
The process involves preparing the dough in large stainless steel tanks, using ingredients like flour and water that are stored in bulk and transferred to the tanks automatically. Yeast and other ingredients are added and blended with high-speed horizontal mixers, and the fermented dough is transferred to hoppers from which it is then forced through extrusion devices that form the pretzels’ shapes. From there, the shaped pretzels are passed under rollers to ensure a flat surface and uniformity of size. The raw pretzels then go through an alkaline bath, dipping, salting, and cooking. Cooling and packaging are the final steps.
With such a complex process, you can’t leave anything to chance. One unexpected event can lead to a serious financial loss. Imagine the impact of spoilage, supply shortages, equipment breakdowns, and recalls on your ability to operate, earn revenue, and pay your bills. And if something like a tornado or fire destroyed your plant, how would you rebuild and continue to operate?
You also need protection from the costs of lawsuits if someone sues you, as well as the excessive costs if you experience a product recall.
Pretzel manufacturer insurance is your first line of defense in these situations. It can:
- Help you pay for repairing or replacing damaged property
- Help you cover expenses during a temporary closure
- Help you pay for defense costs and damages if you are sued
Why Do Pretzel Manufacturers Need Liability Insurance?
Pretzel manufacturers are particularly vulnerable to lawsuits related to products that are contaminated or determined to be harmful in some way. What’s more, if a product is contaminated, mislabeled, or determined to be unsafe, it may have to be recalled—a costly and damaging process that may haunt your company for years.
Insurance can protect pretzel manufacturers from these kinds of claims and especially if they are sued. A few insurance policies can be the difference between recovering financially after a lawsuit or product recall, and being forced to close to your doors.
- Commercial general liability insurance is necessary for occasions in which your business is careless and causes bodily injury or property damage. It provides coverage if someone is injured on your premises as well as for claims of advertising or copyright infringement, libel, slander, and false advertising. It would respond to claims of mislabeling (e.g., a “gluten free” product actually contains gluten), making false health claims (e.g., “low fat pretzels can help you lose weight”), or when a person is injured at or because of your business.
- 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 tainted pretzels make someone sick, you may be required to pay for medical costs, compensatory damages, economic damages, attorney fees and court costs, and more.
- Product recall insurance covers the costs associated with a product recall. If a product is contaminated and must be removed from the market, your product recall insurance will cover product removal and disposal costs, loss of profit, product replacement, and public relations and communications costs.
Why Do Pretzel Manufacturers Need Property Insurance?
Commercial property insurance helps protect your manufacturing facilities (buildings) and their contents, (e.g., office equipment, mixers, extrusion devices, mixers, tanks, ovens, and packaging 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:
- Business interruption coverage protects your earnings if your business is unable to operate because of fire, hail, wind, equipment breakdown, etc. If you are forced to close your doors for a period of time in order to make repairs, it pays for rent, employee salaries, lost income, relocation fees, and more.
- Utility interruption coverage reimburses you for costs related to breakdowns in utility services (water, electrical) that force you to temporarily stop production.
- Equipment breakdown coverage helps you repair or replace damaged machinery that is essential to keeping your production line working.
- 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.
- Additional flood, windstorm, or earthquake coverage may be necessary to protect your business property, depending upon your location.
Other Important Business Insurance for Pretzel Manufacturers
Your obligation to protect your customers, suppliers, and the general public does not end with basic property and liability insurance. Talk to your agent about additional coverage that you likely need to fully cover your risks.
- Environmental liability insurance protects companies from the costs associated with damage caused by improperly disposing hazardous waste or causing environmental harm.
- Commercial auto coverage is necessary if your business owns and operates any vehicles. It covers your vehicle fleet and drivers in the event of an accident or other vehicle damage that occurs as you transport your product from place to place.
- 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 would pay when your other liability coverage has been exhausted.
Why Do Pretzel Manufacturers Need Worker's Compensation Insurance?
Pretzel manufacturers rely on fast-moving, complex machinery that must be operated with great skill and care. In addition to teaching employees how to safely operate machinery and always follow safety procedures, you must provide worker's compensation insurance.
Worker's compensation insurance protects you and your employees from the costs of workplace injuries and illnesses. It pays for medical bills and lost wages if someone is injured on the job, regardless of who is at fault.
How Much Does Pretzel Manufacturer Insurance Cost?
The cost of pretzel manufacturer 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:
- Number of employees
- Types of manufacturing equipment
- Size and location of your building
- Volume and geographical distribution of your products
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 pretzel manufacturer insurance. They’ll walk you through the 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 take into account the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost savings 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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