Although grocery stores and supercenters have taken over a large portion of the meat processing industry, there is still a place in our society for stand-alone butcher shops. Many people enjoy purchasing their meat products from a trusted place where they get personalized service from the people who work there. If you are the owner of a butcher shop, you will want to be sure to protect your investment with a sound business insurance portfolio. An independent insurance agent can help you build a butcher shop insurance policy that is designed to cover your store’s specific risks and exposures.
2014 Meat Market Industry Facts From IBISWorld
- There are approximately 8,624 butcher shops operating in the United States.
- These stores employ nearly 42,000 people.
- The meat market industry generates about $8 billion in revenue each year.
You Need Sufficient Property Damage Coverage
Having the right property insurance can ensure that your butcher shop is protected from loss in the event of a disaster. Insurance types to discuss with your independent agent include:
- Building coverage: If you own the building in which your butcher shop is housed, you will want to purchase this insurance. It compensates you for the costs associated with damage to the structure of the building caused by a covered event such as wind, lightning, fire or vandalism.
- Business property coverage: This insurance covers the business property kept within your butcher shop, including your inventory of meat, scales, display cases, cash registers, signage, décor and machinery, in the event that the property is lost or damaged by a covered event such as fire, wind or theft.
- Boiler and machinery coverage: This insurance covers the cost of repairs or replacement of the machinery used in your butcher shop, including grinding machines, electric saws, freezers, refrigerators, air conditioners and heaters.
- Spoilage insurance: This coverage may be built into your boiler and machinery coverage. Otherwise you will need to purchase it separately. It covers the cost of replacing meat products if they become spoiled due to a failure of your refrigeration or freezer units.
You Need Proper Liability Insurance
A liability lawsuit can cost your butcher shop a significant amount of money if you do not have the proper insurance in place. Even if the courts rule in your favor, the cost of legal defense fees can add up significantly. Be sure to discuss the following types of liability coverage with your independent insurance agent when you are building your butcher shop insurance portfolio.
- Premises liability insurance: Accidents happen. If a customer or other third-party interest such as a delivery-person is injured or suffers property damage while in your butcher shop, you can be held liable for the damages. Premises liability insurance provides this coverage.
- Product liability insurance: If the products you sell in your store cause your customers to be sickened, such as might happen with an E. coli outbreak, or injured, as may happen if a hard foreign substance is embedded in the meat, your store can be sued for damages. Product liability insurance shields you from significant losses, particularly if you must do a widespread recall due to contamination.
- Employment practices liability insurance: This insurance provides coverage if an employee sues your butcher shop for a perceived illegal business practice such as wrongful termination, harassment or discrimination.
What Other Butcher Shop Insurance Coverage Do You Need?
Other insurance types you will want to discuss with your independent insurance agent include:
- Workers' compensation insurance: Your business is responsible for covering the medical treatment necessary for injuries sustained by your employees while on the job. This is of particular importance at a butcher shop where knives and machinery pose a significant risk of accidental injury. Workers' compensation insurance covers medical bills and compensates your business for wages paid to workers who are home recovering.
- Business Income Insurance: This coverage provides your butcher shop with a continuation of income in the event that a covered disaster forces you to close for an extended period so that repairs can be made. This coverage, which enables you to continue to pay employee salaries and monthly expenses, typically lasts until you are able to resume normal business operations.
- Flood and earthquake insurance: Coverage for loss or damage resulting from floods and earthquakes is specifically excluded by most insurance policies. If your butcher shop is at risk for either of these disasters, your independent insurance agent can help you supplement your portfolio with policies provide the appropriate coverage.
- Employee dishonesty insurance: This insurance protects your butcher shop from financial loss in the event that one of your employees steals from your business or engages in other illegal behavior while on the job.
Get Help Building a Strong Butcher Shop Insurance Policy
Don’t run the risk of purchasing an insurance portfolio that leaves you with large coverage gaps. An independent agent in the Trusted Choice® network can help you get the right coverage at the right price. These agents can work with you to assess your risks, explain your coverage options, and shop around for competitively priced policies that are suitable for your business. Find a Trusted Choice agent near you to learn more about how simple it can be to build a comprehensive butcher shop insurance portfolio.