Frequently Asked Questions Manufacturing Insurance for Grains & Oilseeds
Q. What are the Main Insurance-Related Risks for Food and Beverage Manufacturers?
A. Based on our experience on the field and the most common OSHA citations, food and beverage manufacturers are at risk for the following situations:
- Product spoilage, contamination or tampering
- Falling object hazards
- Injuries from working on dangerous equipment
- Lack of quality assurance/quality control
- Machine malfunctions
- Factory fires
- Providing a lack of Personal Protective Equipment (PPE)
- Poor management of highly hazardous chemicals
- Poor hazard communication
Q. Are There Particular Factors to Consider when Evaluating Manufacturing Insurance Options for Grains & Oilseeds?
A. There are specific risks that grain and oilseed manufacturers face on a daily basis, including:
- Property Exposure – Grains and oilseeds are exposed to dust, combined with sparks from conveyer systems. There is also the possibility of spontaneous combustion from grain that is stored and becomes wet. There are large storage bins and conveyor systems to transport and feed grain into the manufacturing process, and large warehouses for storage of the final product. It is important to closely monitor the product to ensure that all is safe – but it’s equally important to stay covered in case the product is exposed to a dangerous, toxic element.
- Fires – Fire caused by malfunctioning electrical equipment or carelessness can spread quickly between fuel sources, putting your property and any equipment, materials or supplies at risk.
- Equipment Breakdown – Grain and oilseed manufacturers depend on complex industrial machinery to produce their product efficiently – and when a piece of important equipment breaks, it often leads to business interruptions. Equipment breakdown coverage can help cover the cost of repairing or replacing equipment that has unexpectedly broken down.
- Business Interruption – Additional common interruptions for grain and oilseed manufacturers can include equipment failure, relocation, fires and natural disasters. Continuity is critical in business, and there are few things more important than continuous revenue and cash flow – particularly for small to midsized organizations. Just one brief business interruption can be incredibly costly for an organization, often leading to serious reputational damages or long-term closures.
- Product Liability and Spoilage – Despite the best efforts to keep food safe, this is a major concern for grain and oilseed manufacturers. In the event of equipment malfunction, food and ingredients may spoil, potentially costing thousands of dollars in lost supplies and revenue. Food poisoning, the presence of foreign objects and other factors can potentially harm a customer, resulting in a lawsuit and costly settlement. Even a frivolous lawsuit can cost a significant amount of time, money and resources. Spoilage insurance can help cover the cost of any food lost as a result of spoilage, and product liability coverage can help cover these costs in the event of a lawsuit.
- Workers’ Compensation Claims – Operating heavy machinery could lead to employees being injured on the job. Grain and oilseed manufacturers work closely with conveyer belts, which can lead to many injuries if they are not careful. Even simple tasks like repeatedly lifting boxes or bags of supplies can lead to musculoskeletal injuries. Accidents ultimately happen in every workplace, but Horton can work with you to develop an effective safety plan and Accident Review Board to help you prepare for when the worst occurs.
Q. What is an Accident Review Board and How Will This Help My Business Long-Term?
A. An Accident Review Board is comprised of key company personnel who review accidents and injuries in the workplace.
Horton will help you determine the best members for your board – usually, it consists of your CFO, head of facilities, risk manager, head of human resources and a Horton safety consultant.
After an incident occurs, the board meets with the injured employee and their immediate supervisor to identify the cause of the incident and develop corrective actions necessary to provide similar situations in the future. If implemented correctly, this could drastically reduce the number and severity of work-related injuries in the future.
Q. What Does Manufacturing Insurance for Grains & Oilseeds Cost?
A. There are several factors that will impact the cost of sugar manufacturing insurance, including the size of your company, the amount of services you are requesting and your overall level of risk. For additional information, call Horton at (800) 383-8283.
