The US snack food manufacturing industry includes about 650 establishments with combined annual revenue of about $38 billion. The snack food market is expected to exceed $600 billion in revenue by 2020.
Snack food manufacturers are primarily engaged in:
Whether you produce potato chips, corn ships, popcorn, or pretzels, snack food manufacturers face a variety of complex and potentially devastating risks.
But with snack food manufacturing insurance, you’ll gain the peace of mind you need. A comprehensive set of tailored business insurance policies will help you:
Snack food manufacturing insurance begins with a few common property and liability insurance policies designed to cover your business risks.
Snack foods may not be top-of-mind when you think of food contamination and spoilage. But with a wide variety of ingredients coming from numerous suppliers to be processed in your facility, anything can happen.
Spoilage is a major concern for any food manufacturer. Power outages and other issues beyond your control can damage refrigeration equipment or create other conditions in which spoilage occurs. Spoiled product must be destroyed, resulting in a variety of unexpected costs and lost income.
Food contamination can be an even bigger problem. Contaminated food products must be promptly removed from the market and destroyed. Retailers, consumers, and government bodies must be notified. Your reputation may be permanently harmed. Depending on the size and seriousness of the recall, the costs can be devastating.
Foods can become contaminated in a variety of ways. Undeclared allergens (mislabeling) were the top reason for food recalls in 2017, and are the top source of contamination for snack foods.
If shared production lines are not properly sanitized between runs, or if ingredient separation protocols are not followed, an ingredient like milk or nuts can sneak into a product that is supposed to be free of allergens.
Snack foods can also be tainted by biological contaminants. This can happen when toxins or microorganisms contaminate your product through tainted water used in the manufacturing process, poor worker hygiene or unsanitary food handling, or pest infestations.
Thankfully there are insurance products that can help you recover from both spoilage incidents and product recalls.
If one of your snack foods is recalled, the costs can be even more disastrous. Product recall costs can include:
After the immediate crisis subsides, the costs of a food 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:
The cost of snack food 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 snack 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 now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.